Pub. 16 2017-2018 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 11 new jersey auto retailer W W W . N J C A R . O R G of automobiles. While the content of this particular proposal was modified to ad- dress dealers’ concerns, this was only the opening round of what will likely be an ongoing debate about how the federal and state governments will regulate the design, manufacture, sale, licensing and repair of autonomous vehicles. It appears that OEMs pushed the original broad language of the SELF DRIVE Act as part of their ongoing effort to bypass the long-established and successful franchised network of dealers. Thankfully, Congress ultimately ag reed wit h t he dealers’ position that maintains the independent network of franchised retailers. Some OEMS are even tr ying to paint this effort as a battle for the very future of autonomous vehicles. They say traditional distribution methods ( i.e. the franchise system ) will frustrate the development of autonomous vehicle technology. Nothing could be further from the truth. State franchise laws protect both consumers and dealers and ensure every vehicle sold is safe to operate on the nation’s roadways, something that is critical with a new technology that is still being tested. These laws, in no way serve as a burden to innovation. Any effort to weaken them, particularly when it comes to autonomous vehicles, hurts consumers and compromises public safety. Autonomous vehicles will continue to evolve and legislators at both the federal and state level will continue to wrestle with how to regulate this new technol- ogy. Dealers, led by NADA in Wash- ington and NJ CAR in New Jersey need to continue working with their elected officials to make sure any future auton- omous vehicle legislation addresses the safety concerns of consumers, without negatively impacting state motor vehicle franchise laws. State franchise laws protect both consumers and dealers and ensures every vehicle sold is safe to operate on the nation’s roadways, something that is critical with a new technology that is still being tested.