In recent weeks, dealers from around the country have been faced with different attempts to slowly transition our nation’s franchise system toward more of a so-called “agency” model that is favored by manufacturers in other regions of the world. In a significant victory for the existing system, a group of 26 Illinois Ford dealer won a legal battle that could significantly impact the rollout of that automaker’s national EV certification program. Ford’s “Model E Plan” would have imposed such measures as significant dealership investment in largely unnecessary infrastructure, non-negotiable pricing on EVs, OE control over trade-in valuations and an unfair allocation of product. In a statement, Jim McMahon of the Illinois Auto Dealers Association (IADA) said, “I’m proud of the IADA board and the 26 Ford dealers who stepped up to file this protest. We stood up to the manufacturer and won a big victory for the franchise model. We will continue to do whatever is necessary to oppose the agency model, which is bad for consumers and dealerships.”
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