GNYADA Takes on Anti Franchise Bills

GNYADA Takes on Anti Franchise Bills

As reported in previous GNYADA Legislative Updates, several pieces of legislation have been introduced this year in Albany to allow direct sales by electric vehicle manufacturers. GNYADA has already made it clear of its opposition to these initiatives. It has made it clear that these bills would be disastrous to the 1000 community based new car dealerships that employ more than 100,000 people statewide.

GNYADA continues to oppose these bills, arguing that they do nothing to help consumers afford these vehicles, which are regularly more expensive than gasoline-powered cars.

The Association has also argued that if the state turned its back on small businesses like franchise dealers, it would hurt consumers and local economies. Without franchise dealers, consumers would have no ability to compare prices, and the loss of competition would inevitably increase the cost of buying a vehicle.

For years, GNYADA has urged lawmakers to take positive steps to promote ZEV sales through franchise car dealers by boosting the state's Drive Clean Rebate Program from a max of $2K to $5K. Increasing the State rebate, along with the $7,500 Federal incentive, would significantly increase consumer interest in ZEVs. GNYADA also strongly supports expanding the state's charging station infrastructure, which will reduce the range anxiety that has prevented potential customers from buying an EV.

One of the most dangerous parts of the proposed legislation is that it would allow existing franchisors to spin-off their electric vehicle brands into separate line-makes. This change would completely evade the Franchise Law protection we worked on over the years to achieve and allow legacy franchisors to set up direct sales operations.

Dealers must make their voices heard in Albany and let them know that this is bad policy and should not be supported.