H689 Signed Into Law PROTECTING THE FRANCHISED DEALERS OF IDAHO The first automobile sale dates back to the 1880s when Karl Benz designed a gas-powered vehicle known as the Motorwagen. Throughout the late 1880s and 1890s, Benz sold around 25 Motorwagens. But by 1903, demand was growing, and approximately 60,000 automobiles were being produced each year. Initially, auto manufacturers were responsible for selling cars, but the model shifted when Fred Koller opened the first dedicated car dealership in 1889 and the franchise dealership model was born. The franchised system has worked well since that day. It is the economic engine of our communities, creating aggressive price competition for consumers and preventing manufacturers from creating monopolies. The franchised system protects consumer safety, creates good-paying local jobs, generates local and state tax revenues and many other economic benefits. Nationally, we have seen a trend of factory-direct sales to consumers, which is nothing short of an attempt to monopolize the market, eliminate competition and limit consumer access to independent warranty and safety recall services. This trend is not good for consumers and not good for Idaho. During the 2024 legislative session, Rep. Megan Blanksma and Sen. Doug Okuniewicz, with the help of Jim Addis of IADA, brought forth legislation that clarified and modified the existing roles of both Idaho’s franchised dealers and their manufacturer partners to ensure each party is treated fairly in this age of rapid change. H689 ensures that free local markets continue to exist in Idaho, providing Idaho consumers with the choice of free market competition, which ultimately benefits us all. Specifically, H689 modernizes existing anti-competition language to ensure that manufacturers cannot compete with franchisees in retail vehicle sales, leases and warranty work. 10 | Driveline
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