For over 105 years, IADA has been dedicated to serving dealers across Illinois. A major milestone in fostering a fair, competitive and profitable motor vehicle retail network was the creation of the Illinois Motor Vehicle Franchise Act in 1979. IADA played the key role in the Act’s development and has continually worked over the past 45 years to strengthen and update it in step with the evolving automotive industry. The Act protects dealers from unfair termination, one-sided dealership sales and service agreement changes that would reduce them to delivery agents, and unreasonable interference with succession plans, among other safeguards. IADA is fighting to prevent OEMs from establishing direct-to-consumer sales networks that compete with their franchised dealers. Senate Bill 1939 would prohibit manufacturers from creating spin-off entities to bypass established dealer networks that have contributed to their success. IADA has spent decades enhancing the Illinois Motor Vehicle Franchise Act to support and protect dealers across the state. Yet, many remain unaware of the Act’s significant role in safeguarding their businesses and fostering a thriving retail automotive industry. The following is a brief summary of the Motor Vehicle Franchise Act legislation that IADA has championed over the past 45 years to strengthen dealer rights. As legacy manufacturers increasingly attempt to emulate start-ups by pursuing factory-direct sales models, the fight to preserve the franchise system and uphold the protections afforded by the Act is more critical than ever. 9 Illinois Automobile Dealer News
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