Will Stewart, Greater Manchester Chamber of Commerce 

On Tuesday, the Greater Manchester Chamber of Commerce joined the Nashua and Rochester chambers in testifying in support of Senate Bill 126.

SB 126 seeks to amend the state's existing Dealer Bill of Rights to further protect New Hampshire consumers and franchised car, truck, equipment and motorcycle dealers.

Automobile manufacturers control nearly every aspect of a dealer's livelihood. At the beginning of the relationship and at renewals, a dealer must sign a unilateral contract drafted by the manufacturer and must do so without any negotiation. During the relationship, the factory exercises further control through of allocation of vehicles, pricing of vehicles, and various other methods. Like all other states, New Hampshire has a Dealer Bill of Rights which provides some balance to this one-sided relationship. 

While the Chamber rarely gets involved in legislative disputes between businesses, we felt an exception was warranted in this case.

As Government Affairs Committee Chairman and attorney John Weaver notes,"States have a long history of regulating the relationships between dealers and manufacturers, and this legislation is consistent with that history. 

"Manufacturers have a strong negotiating position with their dealers, holding all control over expensive inventory and valuable branding. This limits the actual freedom of contract between the two parties, as the two are rarely negotiating from equal positions of power. The nature of car sales distinguishes dealers from franchisees in other sectors. 

"For example, although trading in your current vehicle is a standard part of buying a new car, no one comes into McDonalds looking to trade in an old cheeseburger to help defray the cost of a new cheeseburger. But the auto dealer is on the hook for the cost of the trade-in until the older vehicle can be sold, providing further leverage to the manufacturers.

"One of the reasons state legislatures have been so eager to help dealers is that dealers are important parts of local economies. They occupy large parcels of non-tax exempt property, directly create jobs on their lots, indirectly create jobs through auto maintenance and support industries, and provide charitable dollars to the community. By helping dealers, state legislatures also help municipalities, employment, and local charities. Likewise, this bill would allow dealers to use local vendors when purchasing materials, tools, and supplies. Additionally, dealers will be able to exercise greater control of their facilities, permitting them to adjust to local economic conditions."

State of the State/State of the City video recording online

Did you miss the Chamber's State of the State/State of the City event with Gov. Maggie Hassan and Mayor Ted Gatsas last week? If so, you can view it online courtesy of our friends at Manchester Public Television.