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Read the latest news from Scali Rasmussen, including legal alerts and event listings.

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As auto manufacturers announce plans to add ever more electric vehicles to their product portfolios, many also are requiring their dealer bodies to make substantial investments to prepare to sell those vehicles. In some instances, the manufacturer also is attempting to assume some aspects of the sales process previously controlled by the dealer.

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Ford dealers are worried that some aspects of the Model e program are a slippery slope leading to the agency model of selling vehicles. In an agency model approach, the manufacturer sets the price and manages the online customer relationship. The dealer serves as the delivery point for the vehicle.

Bridging the divide

Plans for manufacturers to satisfy car enthusiasts and dealers in an electric world

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As countries around the world move forward with plans to phase out the internal combustion engine, luxury and high-performance brands are coming to grips with perhaps the most significant change in automotive history: conversion to electric vehicles (“EVs”). The change brings feelings of frustration and grief, but also anticipation and excitement to manufacturers, dealers, and customers alike.

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The 2023 legislative session touched on a wide array of business topics. The new laws do not affect all businesses, but are nonetheless worth every business owner’s attention, as they may shape you conduct business in California in the future. In particular, California continues to pass legislation aimed at minimizing the impact of climate change.

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As with prior years, California enacted additional legislation with the goal of limiting catalytic converter theft. Dealerships will need to take the necessary action to comply with these new laws. AB 473 is a victory for dealerships in that, among other things, it closes a loophole used by manufacturers during the Protest process. And, as with new laws governing businesses, in general, California has passed additional legislation aimed at minimizing the impact of climate change that targets the vehicle and dealership process.

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Both the Federal government and California enacted legislation raising the minimum wage for certain workers. California has also passed several bills that protect employees in variety of ways relating to cannabis use, non-compete agreements, workplace safety, right to organize, retaliation, and reproductive rights.

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