IADA ON THE FRONT-LINE FIGHTING FOR DEALER RIGHTS

For 103 years, IADA has served dealers throughout the state of Illinois.  From Chicago to Carbondale and Quincy to Danville, your State Association works to represent our Illinois dealership industry.  Your support through membership, grassroots advocacy, and participation in our array of Association programs like CVR, The Ethos Group and others, make our efforts possible.  Visit our IADA website for all the ways to partner.

Please stay involved and participate in all these ways so we can keep this tremendous history of legislative success going!  Currently, IADA is involved in several legal actions in which important dealer rights under the Illinois Motor Vehicle Franchise Act are being challenged. 

IADA is supporting a group of 29 Ford dealers who have challenged Ford’s “Model e” electric vehicle allocation program.  Ford’s Model e Program interferes with price negotiation, trade-in valuations, and vehicle allocation.  The Ford protest is scheduled to go to hearing on May 8th. 

IADA is also coordinating with the Illinois Attorney General’s Office on a motion to dismiss Volkswagen’s lawsuit to declare the recently enacted warranty reimbursement statute unconstitutional.  The warranty reimbursement law has enabled dealers and service technicians to get adequately reimbursed for warranty repairs. 

It goes without saying that IADA is heavily involved in the lawsuit against Rivian and Lucid to challenge the issuance of dealer’s licenses to motor vehicle manufacturers.  Direct sales by manufacturers erodes the important dealer and consumer protections embedded in the Illinois Motor Vehicle Franchise Act.

All 3 of these legal actions involve important dealer rights that IADA and the Illinois dealer body have fought for over many years. Motor vehicle manufacturers are watching all of these cases and looking for ways to erode hard-fought dealer rights under the Motor Vehicle Franchise Act.  In addition to these legal actions, IADA has spent decades strengthening the Illinois Motor Vehicle Franchise Act for the benefit of all Illinois dealers. 

Following is a short summary of Motor Vehicle Franchise Act legislation that IADA has sponsored over the past 3 decades to strengthen dealer rights.  As long-time manufacturers try to copy the start-ups and move into factory-direct vehicle sales, the battle to preserve the franchise dealer system and protect dealers’ Motor Vehicle Franchise Act rights is more important than ever. 


 ILLINOIS AUTOMOBILE DEALERS ASSOCIATION LEGISLATIVE HISTORY

1990-2023

2021 Legislative Session

  • HB 3940 – Amends the Illinois Motor Vehicle Franchise Act
IADA Officers working on behalf of our dealers
  • Requires vehicle manufacturers to compensate franchised dealers fairly and adequately for warranty work on vehicles.
  • Adjusts manufacturer calculations for time allowances, labor rates, and parts prices for warranty work.
  • Extends warranty reimbursement provisions to recall repairs.

 

  • HB 2435 – Amends the Illinois Motor Vehicle Franchise Act
  • Prohibits a manufacturer from prohibiting or requiring a dealer to offer a specific secondary product, including service contracts; maintenance agreements; extended warranties; protection product guarantees; gap waivers; insurance; replacement parts; vehicle accessories; oil; or supplies.
IADA Headquarters is across the street from the State Capitol.
  • Permits a manufacturer to offer an incentive program to encourage dealers to offer manufacturer-approved or endorsed secondary products.
  • Prevents manufacturers from dictating to dealers to use only their products and extended service contracts.

 

2019 Legislative Session

  • SB690
  • Beginning January 1, 2020, IADA was successful in raising the base Doc fee to $300 per vehicle ($150 increase).
  • SB22 - Amends the Illinois Vehicle Code.
  • IADA defeated Senator Oberweis’ attempt to repeal the Sunday closing law.

 

2018 Legislative Session

  • SB2420 - Amends the Illinois Vehicle Code.
  • IADA defeated Senator Oberweis’ attempt to repeal the Sunday closing law.

 

2017 Legislative Session

  • SB1687 - Amends the Motor Vehicle Franchise Act.
IADA Executive Director at IL Capitol
  • Limits the ability of a manufacturer to penalize a dealer if a customer resells or exports a vehicle.
  • Prohibits a manufacturer from requiring dealer improvements more than once every 10 years, unless the manufacturer pays for the improvements.
  • Prohibits a manufacturer from requiring that dealers use specific vendors for improvements, unless the manufacturer pays for the increased expense of its vendor over the dealer’s.
  • Requires manufacturers to reimburse proposed buyers and sellers if the manufacturer exercises a right of first refusal to block a dealership transfer.
  • Includes a legislative finding that the regulation of motor vehicle manufacturers creates a system for servicing vehicles and complying with warranties.
  • SB2037 - Amends the Illinois Vehicle Code.
  • IADA defeated Senator Oberweis’ attempt to repeal the Sunday closing law.

2016 Legislative Session

  • SB2860 - Amends the Illinois Vehicle Code.
IADA Chairman David Parkhill
  • IADA defeated Senator Oberweis’ attempt to repeal the Sunday closing law.

2015 Legislative Session

  • SB1707, SB1780, and SB 1835 - Amends the Illinois Vehicle Code.
  • IADA defeated Senator Oberweis’ attempt to repeal the Sunday closing law.

 

2014 Legislative Session

  • HB2317 - Amends the Retailers Occupation Tax Act.
  • Reduced the sales tax basis for motor vehicle leases from the entire value of the leased vehicle to the amount of the lease contract.

 

2009 Legislative Session

  • SB1417 - Amends the Motor Vehicle Franchise Act
  • Added Right of First Refusal for dealerships
  • Provides language to allow dualling of unrelated franchises at one location
  • Termination safeguards
  • Sale of Factory pre-owned vehicles
IADA Vice-Chairman John Alvirevich
  • Includes truck engines, transmissions, and rear axles in the definition of motor vehicles
  • Defines dealer audit periods for incentive audits and warranty audits at 12 months
  • HB4628—Amends the Motor Vehicle Franchise Act
  • Provides that a manufacturer that goes through bankruptcy cannot backfill a terminated franchise without offering the point to the terminated dealer unless (i) as a result of a former franchisee's cancellation, termination, non-continuance, or nonrenewal of the franchise, the bankrupted manufacturer had consolidated the line make with another of its line makes with a franchisee who operates a facility located within that relevant market area; (ii) the successor manufacturer paid the former franchisee the fair market value of the former franchisee's franchise; or (iii) the successor manufacturer proves that the former franchisee is unfit to own or manage the dealership.
  • Prohibits manufacturers from forcing dealers into a Site-Control Agreement

 

2007 Legislative Session

  • HB 1657
  • Beginning January 1, 2008, IADA was successful in raising the Doc fee level to $150 per vehicle ($100 increase).

 

2001 Legislative Session

  • HB 2960 – Expands the Illinois Motor Vehicle Review Board from a 3-member panel to a full 7-member Board.  The Board has benefited dealers by streamlining the dispute resolution process.

 

2000 Legislative Session

IL House Chamber
  • HB 3037 - Illinois Motor Vehicle Franchise Act changes to strengthen existing statutes regarding dealer relocations.
  • HB 3420 - Electronic Title and Lien Processing.

1999 Legislative Session

  • HB 520 - Makes numerous Motor Vehicle Franchise Act changes.
  • HB 555 - Prohibits manufacturers from owning or operating dealerships.

1995 Legislative Session

  • SB 539 - Passed legislation to rewrite the Illinois Motor Vehicle Franchise Act. Incorporates a 3-member board to hear relocation and other franchise issues.

1994 Legislative Session

  • HB 3522 - Passed legislation to require a mandatory damage disclosure of new vehicles. Must disclose damage which exceeds 6% of the retail price.
  • SB 1730 - Legislation was passed which prohibits out of state dealers from displaying or selling vehicles in Illinois.

1993 Legislative Session

  • HB 1587 - Prohibits out-of-state dealers from selling in Illinois.

 

1992 Legislative Session

  • HB 3246
  • Allows dealer to relocate within two miles of an existing franchise.
  • Limits audits and chargebacks to 18 months.
  • All claims must be approved or disapproved by the manufacturer.
  • SB 393 
  • Prevents dealers and rental agencies from going outside their relevant market area to conduct an off-site sale.  All vehicle sales made as a result of vehicle referral programs to be consummated only by a licensed dealer.
  • SB 1273 
  • Eliminates Ford’s or any manufacturers attempt to establish separate facilities to sell program vehicles.  Allows dealers to charge up to $40 for DOC fees, and provides for an annual increase.

1990 Legislative Session

  • HB 776
  • Agreement reached with GM to put a national moratorium on the Delco-Tech Service Center Program.