PRESIDENT’S MESSAGE It’s remarkable how fast 2025 has gone by, filled with impactful developments that affect the auto industry nationally and locally. As I reflect on the many accomplishments of NJ CAR during the past year, I feel a sense of pride because of the important passage of one of the most comprehensive warranty labor time laws in the United States. The passage and enactment of the “Motor Vehicle Open Recall Notice and Fair Compensation Act” (A4380/S3309) (P.L. 2025, c.140) is a tremendous accomplishment for NJ CAR. While there are numerous provisions, its name signifies two of the main features of the law, which are to 1) Provide enhanced notification to consumers about open recalls, and 2) Establish a process for the fair compensation of automotive technicians through their dealerships. Another important aspect of the law is amending the New Jersey Franchise Practices Act (NJFPA) to grant standing to NJ CAR to sue on behalf of dealers if there is an alleged violation of the NJFPA by manufacturers. SAFETY RECALL NOTICE In 2024, the National Highway Traffic Safety Administration (NHTSA) ordered automakers to recall 27.7 million vehicles across the United States. Approximately 1.4 million vehicles in New Jersey today are being operated on the roadways with unresolved safety or emissions recalls. The new law requires that when the New Jersey Motor Vehicle Commission (NJMVC) issues motor vehicle registration or registration renewal notices to New Jersey consumers, it must also notify them that the NHTSA maintains a database whereby consumers can determine if their motor vehicle is subject to an open recall. This “Open Recall Notice” must also include a link to the NHTSA database and a statement indicating that each open recall may be repaired at no cost to the consumer by a franchised new car dealer approved by the manufacturer. The NJMVC may apply for monies, including through federal grants, to fund this process. The law also provides that manufacturers who do business in the State must assist BY LAURA PERROTTA, PRESIDENT, NJ CAR The Passage of the Motor Vehicle Open Recall Notice and Fair Compensation Act the NJMVC with the application for funding. The chief administrator may require manufacturers who conduct business in the State to pay a fee to fund the implementation. FAIR COMPENSATION FOR WARRANTY AND RECALL WORK For many years, it has been the practice of manufacturers to manipulate the time it takes to complete a repair under warranty or recall. This manipulation often takes the form of a reduction in the number of hours it takes to make a repair immediately before a significant recall is announced. Dealers were also subjected to time guides established by the manufacturer, which were set in pristine conditions that do not consider the rigors of the average dealership service facility. These imbalances required a change in the law, which the “Motor Vehicle Open Recall Notice and Fair Compensation Act” sought to address. The law requires manufacturers to compensate dealers for warranty and recall work at the same rate a retail customer pays for the same repair, accomplishing this by allowing the dealership to set its own A Victory for Consumers and Auto Technicians 6 NEW JERSEY auto retailer
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