California dealer bill vetoed by governor over warranty payment formula
California Gov. Jerry Brown, in a surprise move, vetoed a wide-ranging bill backed by the California New Car Dealers Association over his concerns regarding a formula automakers would have had to use to pay dealers for warranty and recall repairs.
The decision late Sunday was unexpected by the association, which said AB 2107 would have strengthened laws for franchised dealerships, because the legislation passed unanimously, said Brian Maas, president of the dealers association representing 1,300 franchised new-car dealerships in the state. But the Alliance of Automobile Manufacturers, a trade association representing a dozen automakers, had said measures in the bill would hurt automakers and consumers.
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