GNYADA January 2019 Newsletter

3 GNYADA Looks Ahead in Albany

costly requirements NY dealers must contend with. Most of the vehicles that brokers sell come from out-of- state dealers. In addition to GNYADA’s efforts to see current law strictly enforced, the Association will explore additional changes to ensure brokers are not evading document protection requirements and to prevent these businesses from operating as de facto dealerships. Used Car Recall Bill GNYADA made progress late last session in advancing a Used Car Recall bill in the State Legislature. However, time ultimately ran out after a long Session filled with negotiations with the AG’s Office and representatives of auto manufacturers. Until NY updates its laws, dealers will continue to carry the costs of poor manufacturer designs subject to a recall. Manufacturers currently have little incentive to fix these vehicles. Dealers lose revenue when these cars are recalled and must be moved off the lot and stored. Once the 2019 Session gets underway, GNYADA will provide regular email updates on key developments in Albany.

deserves special treatment because it sells only electric cars, but it has been non-Tesla dealers in NY that have promoted the electric car market the most. In fact, 92% of NY’s nearly 10,000 Drive Clean Rebates have been sold by franchised dealers. Warranty Repairs: GNYADA will also be working to ensure dealers are treated fairly when they make claims for warranty repair work. Some manufacturers are denying dealers reimbursement for the time they spend diagnosing warranty defects and changing the price of warranty parts to avoid paying dealers a fair amount for performing this essential work. Broker Law Enforcement: GNYADA will be meeting with the incoming Attorney General, Letitia James, to discuss her new role in enforcing the State’s Broker Law. That law, which was revised early in 2018, increased advertising and filing disclosures to ensure brokers are operating fairly in NY. However, it remains unclear how well brokers are complying with those laws and whether they are violating others. Brokers set up shop in a NY dealer's market area, usually in a small storefront location. Then, they negotiate and complete sales on behalf of consumers, without the

2018 was a productive year for GNYADA in the State Capital and 2019 is poised to be even busier! Several issues will return to the agenda while others will take on greater significance – increasing the Doc Fee, increasing enforcement against brokers, and protecting and strengthening the franchise law. Protecting the Franchise System Direct Sales: In 2018, GNYADA successfully defeated Tesla’s effort to expand its franchise law exemption, which would have allowed it to open 15 more factory-owned stores. The Association argued that Tesla’s legislation removes competition from the new car retail market, puts NY jobs and businesses at risk, and jeopardizes the other benefits of healthy dealership businesses: strong and reliable tax revenue and support for local charities. GNYADA expects Tesla to renew its effort in 2019. While it will need new sponsors in both the State Senate and Assembly after this year’s elections, GNYADA does not expect the electric car maker to be deterred. GNYADA will prioritize educating legislators, especially the many new legislators, about dealers’ contributions to the state’s economy and to building the Zero Emissions Vehicle market. Tesla argues that it

GNYADA Hires Communications Agency 4 GNYADA recently hired Butler Associates, a public relations & strategic communications agency The Butler team brings a broad spec- trum of expertise as former journal- ists, government press secretaries, corporate communications directors,

This includes spotlighting client issues in the nation's leading news publications, as well as preventing and defusing “bad news” in the media.

specializing in media relations. Butler will be promoting the important role that the Association and its member- dealers play in the state economy, their local economies, and their communities.

and political campaign managers. Butler is best known for its strategic client campaigns and earned media relations, which frequently receive top industry awards and honors.

4 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • January 2019

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