WARRANTY REIMBURSEMENT The warranty reimbursement space has recently been a hot topic among dealers and OEMs. As you may have seen, the Alliance for Automotive Innovation (the Alliance) sent a controversial letter to the U.S. Department of Justice’s Anticompetitive Regulations Task Force to evaluate whether state franchise laws restrict competition and harm consumers. While purporting to support the franchise model, the Alliance argued not only that franchise protections must “be measured against whether they unreasonably impede [OEMs’] ability to compete” but also that recent trends in warranty reimbursement legislation create a “costly overreach” that harms consumers. Of course, the Alliance overlooks the critical nature of dealers in performing warranty and recall repairs. The number of active recalls has been on the rise for years, and dealers are the boots on the ground that perform recall and warranty repair work that is critical to keep consumers safely on the road. Without dealers available to perform these repairs, transportation — and by extension our economy — could easily grind to a halt. Why Retail Rates Are Critical for Consumers and Dealers Alike By Sarah Bishop, Vice President, KADA 14 KENTUCKY AUTO DEALER
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