The bill amends Section 57-16-3 of the New Mexico Statutes to permit motor vehicle manufacturers to obtain licenses as motor vehicle dealers under certain conditions. It introduces new definitions, such as "line-make," which refers to vehicles sold under a common name or trademark, and "successor manufacturer," which pertains to manufacturers that take over the business of a predecessor. The bill also clarifies the definitions of "motor vehicle dealer" and "manufacturer" to include a wider range of entities involved in vehicle sales and distribution.

Additionally, the bill revises Section 57-16-5 to outline unlawful practices by manufacturers and distributors, such as coercing dealers into ordering unrequested vehicles or parts, refusing to deliver advertised vehicles, and terminating dealer agreements without just cause. It establishes protections for dealers, including the right to change their capital structure and sell or transfer their interests with reasonable consent from manufacturers. The bill also prohibits manufacturers from imposing unreasonable operational requirements and ensures dealers are compensated for labor and parts related to recalls, while preventing adverse actions based on performance data during inventory disruptions. Overall, the bill aims to foster a fairer and more transparent relationship between motor vehicle dealers and manufacturers in New Mexico.

Statutes affected:
introduced version: 57-16-3, 57-16-5