Gov. Nixon Signs Bill in Union to Strengthen Business Protections for Missouri Automotive Dealers

Press Release

Gov. Jay Nixon today signed legislation that expands protections for Missouri automotive sales businesses. House Bill 2198 modifies the Missouri Motor Vehicle Franchise Practices Act to protect Missouri automobile dealers from anti-competitive practices and allow dealers to better compete in the marketplace.

"The automotive industry is critical to our state, and we must be certain that Missouri businesses in all phases of that industry are well-positioned to compete," Gov. Jay Nixon said. "Your local auto dealer employs people from your community, helps meet a critical need for transportation and contributes significantly to the economy of our state. With the signing of House Bill 2198, we ensure that our local auto dealers will be protected from anti-competitive practices and poised to join in our state's economic growth."

Gov. Nixon signed the House Bill 2198 during a ceremony at Barreth Ford Center in Union. The bill adds new provisions to the Missouri Motor Vehicle Franchise Practices Act, which governs the relationship between automobile dealers and manufacturers. Specifically, the bill contains measures which:

* Ensures that a dealer will have remaining vehicles, equipment, signs, service contracts and other items purchased by the manufacturer, and at an enhanced dollar value if the franchise agreement is terminated by the manufacturer;
* Adds protections regarding damaged inventory, by requiring manufacturers to tell a dealer if a vehicle was damaged prior to being shipped to the dealer;
* Gives dealers the right of first refusal to operate his or her dealership under the new manufacturer if the original manufacturer or division of manufacturer is sold to a successor manufacturer;
* Permits dealers who have suffered damages due to violations of the Motor Vehicle Franchise Practices Act to seeks actual and punitive monetary damages in order to make their business whole; and
* Requires automobile manufacturers or franchisors to register with the Missouri Department of Revenue.

House Bill 2198 includes a number of other minor provisions aimed at guaranteeing Missouri automotive dealers a level playing field on which to compete. The bill also helps insulate Missouri's automotive sales businesses from failures or difficulties faced by manufacturers at the international level.

House Bill 2198 was sponsored by Rep. Mike Parson of Bolivar and was handled in the Senate by Sen. John Griesheimer of Washington.

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