For those who may have missed it, Volkswagen’s recent lawsuit challenging Illinois’ warranty reimbursement statute was dismissed by a federal judge earlier this month. This decision means Volkswagen cannot refile the case. While court cases might seem distant from everyday dealership operations, this one could be a topic of discussion in summer 20 groups. Here’s a summary from Colorado’s perspective.
Understanding the Illinois Case
Illinois implemented a new warranty reimbursement approach by applying a multiplier of 1.5 times to stabilize rate growth. Volkswagen opposed this, claiming it violated several constitutional principles. However, the court found Volkswagen’s claims unconvincing, leading to a dismissal.
To read more about the details of the case, visit Automotive News.
Colorado’s Legislative Approach
Colorado’s 2023 legislation addressed warranty reimbursements differently by removing the “reasonableness clause” from the statute. This clause had previously allowed manufacturers to suppress market rates by comparing dealers. Colorado’s new law aimed to simplify and stabilize warranty claims without the complications seen in Illinois.
Impact on Colorado Dealers
The dismissal of the Volkswagen lawsuit does not necessitate a review of Colorado’s statute. The recent law changes in Colorado have already achieved similar stabilization goals. Although the full impact on dealers is still under assessment, the law is expected to provide benefits for both workers and consumers by simplifying the reimbursement process.
To learn more about the VW lawsuit and how it affects dealers, watch the video below where Matthew Groves, President and CEO of the Colorado Auto Dealers Association, explains the impact and what dealers need to do in detail:
What Should Colorado Dealers Do Next?
Dealers are encouraged to stay updated by subscribing to CADA’s email newsletter. This newsletter serves as a key resource for the latest legislative developments, industry updates, trends, and more within the Colorado vehicle industry. It delivers essential news directly to subscribers’ inboxes, helping them stay connected with CADA’s initiatives and advancements.
By subscribing, dealers can avoid missing crucial updates on cybersecurity breaches and other significant changes that may impact their dealerships. Staying informed will help ensure that businesses remain compliant and continue to thrive.
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About The Colorado Auto Dealers Association (CADA)
Founded in 1933 and officially incorporated in 1938, the Colorado Automobile Dealers Association (CADA) began as a collective effort by dealers to contest a federal excise tax. Today, CADA is a dynamic trade association dedicated to advocating for the interests of Colorado’s auto dealers. It addresses legislative, regulatory, and operational challenges, ensuring that the state’s automotive sector and driving public are well-represented and supported.
The Colorado Auto Dealers Association (CADA) is committed to supporting dealers by providing timely updates, educational resources, and advocacy. Established in 1933, CADA addresses legislative, regulatory, and operational challenges to protect and promote Colorado’s automotive sector. Stay informed through our publications, such as Above the Fold, the Bulletin, and our LinkedIn updates. CADA also provides essential resources to help dealers understand new legislation and industry trends, especially after the legislative session concludes each May.