Calif. Law Changes Dealer's Reimbursement Rate for Recalls

Oct. 15, 2019
California's governor signed a bill into law that will require manufacturers to pay dealers retail rates for recall repairs.

Oct. 15, 2019—California Governor Gavin Newsom signed a bill into law that requires manufacturers in the state to pay dealers "equal to the franchisee's retail labor rate and retail parts rate" for recall work, per a report by CNET.

Before the new bill, the dealer might be paid as little as 60 percent less it would get paid for similar work from a customer.

According to the bill, AB-179, "existing law requires a franchisor to fairly compensate for labor and parts used to fulfill warranty obligations."

Sponsored Recommendations

Best Body Shop and the 360-Degree-Concept

Spanesi ‘360-Degree-Concept’ Enables Kansas Body Shop to Complete High-Quality Repairs

How Fender Bender Operator of the Year, Morrow Collision Center, Achieves Their Spot-On Measurements

Learn how Fender Bender Operator of the Year, Morrison Collision Center, equipped their new collision facility with “sleek and modern” equipment and tools from Spanesi Americas...

ADAS Applications: What They Are & What They Do

Learn how ADAS utilizes sensors such as radar, sonar, lidar and cameras to perceive the world around the vehicle, and either provide critical information to the driver or take...

Banking on Bigger Profits with a Heavy-Duty Truck Paint Booth

The addition of a heavy-duty paint booth for oversized trucks & vehicles can open the door to new or expanded service opportunities.