IADA-Your Advocate for the Franchised Dealer Model
Show ponies like Tesla Motors, Rivian Automotive, and Lucid Motors bypass the Illinois Motor Vehicle Code and the Illinois Motor Vehicle Franchise Act to sell their vehicles directly to consumers. There are literally hundreds of new manufacturers in China and all over the globe trying to work their way into the U.S. market with a direct sale model. Through it all, IADA is your workhorse defending hard-earned rights under Illinois law. IADA welcomes the prospect of new manufacturers with innovative products entering the market. However, it is important that all motor vehicle manufacturers use franchised dealers, with the inherent benefits that a franchised dealer model provides to the public at large.
Almost 30 years ago, IADA sponsored legislation to create the Illinois Motor Vehicle Review Board, which is the administrative body that presides over disputes arising under the Illinois Motor Vehicle Franchise Act. Creating the Motor Vehicle Review Board has provided dealers with a fair, cost-effective forum for resolving Motor Vehicle Franchise Act disputes.
Over the past 3 decades, the Board has reviewed a host of Franchise Act provisions, including warranty reimbursement, termination, and relocation disputes.
In addition to the creation of the Motor Vehicle Review Board, dealer support of IADA and IADA programs like CVR, Ethos, and Federated has enabled IADA to support the franchised dealer system in a host of other ways.
Read more about pending court cases
As you can see, IADA is laser-focused on maintaining the franchise system for the mutual benefit of manufacturers, dealers, and consumers. Your support of IADA over the past 104 years has helped us to pass the Franchise Act, Vehicle Code, and Sales Tax legislation and has helped us step in when dealer rights need to be litigated. We will never take your support of IADA for granted, and we will always defend the franchise model.