2025 Pub. 15 Issue 1

JAMIE AUFFENBERG JR. CHAIRMAN, IADA It is my great pleasure to serve this year as your 2025 IADA chairman. On behalf of your IADA officers and board members, you can be assured the Illinois Automobile Dealers Association (IADA) continues to lead the charge in protecting and advocating for franchised auto dealers across Illinois. This spring, our unwavering commitment to preserving the integrity of Illinois’ franchise system remains front and center as we focus on three critical legislative priorities: 1. Updating the Illinois Motor Vehicle Franchise Act — Senate Bill 1939 IADA is advancing targeted amendments to strengthen the franchise system and protect dealers from manufacturer overreach. Key Proposals: • Direct Sales (Scout Issue): Explicitly prohibit legacy manufacturers from bypassing franchisees through direct sales or new “affiliate” or “common entity” and prevent OEMs from spinning off affiliates to sell directly, protecting established dealer networks. • Right of First Refusal (ROFR): IADA proposes to ban the ROFR unless the manufacturer can show (1) that the buyer is not qualified or (2) that it is exercising ROFR to direct the sale to a minority purchaser as part of a bona fide affirmative action program. • Warranty Reimbursement Protections: Strengthen protections to ensure dealers are fairly compensated for labor, parts and costly repairs like EV batteries. Clarify claims processes and ban arbitrary caps or delays imposed by manufacturers. These updates are essential to preserving consumer access to competitive, locally operated dealerships and reinforcing the franchise model as a cornerstone of Illinois’ economy. Dealer advocacy is vital — use our IADA “Action Center” on our website at illinoisdealers.com/action-center for the easiest way to send our prepared message to your respective legislator IADA: Fighting For Franchise Dealers Chairman’s Message 6 Illinois Automobile Dealer News

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