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New
Car Dealer Industry Defeated For First Time In 25 Years Sometimes
a single news article can kill a bad bill.
Almost every year, the state’s powerful new car dealers
industry push franchising legislation intended to take advantage the
state’s car manufacturers.
The manufacturers are almost always on the defensive and are
forced to make franchise concessions to their more influential dealers.
In 1998 the New Car Dealers sought to expand a 25-year-old law
that grants de facto monopolies over the sale of same make new
cars within a 10 mile radius of an existing franchise.
The dealers wanted to expand this 10-mile radius monopoly to the
new emerging auto service center business.
The domestic car manufacturers were unable to secure amendments
to AB 2707 that was flying through the Legislature.
We were retained to forge informal coalitions with consumer
groups and solicit news coverage to slow or stop the bill.
The attached article sent shock waves through the Capitol and the
new car dealer industry.
Instead of directly confronting the complexity of AB 2707 we
launched an attack on the anti-competitive 25 year old law they sought
to expand.
For the first time, in almost 25 years, the domestic
manufacturers were able to bring the New Car Dealers to terms and secure
amendments which removed the objectionable portions of AB 2707. |
