This is an archived article that was published on sltrib.com in 2012, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
State senators sided Friday with car dealers in a fight with car manufacturers despite warnings by automakers that a pending bill could lead them to stop all sales incentive programs in Utah.
The Senate Transportation and Public Utilities and Technology Committee voted unanimously to pass SB68 by Sen. Scott Jenkins, R-Plain City, and sent it to the full Senate.
The bill pushed by dealers would prevent manufacturers from "coercing or requiring" dealers to set pricing on some products and services that dealers would normally control — from fees for handling sales documents to adding such things as bed liners for trucks.
But manufacturers argue that wording in the bill could prevent any voluntary agreement where some required pricing is involved — including incentive programs that offer discounts for employees of the manufacturer and other groups.
Frank Pignanelli, a lobbyist for manufacturers, testified that General Motors sent a letter warning that it may cut all incentive programs in Utah if the bill passes. Sen. Karen Mayne, D-West Valley City, questioned if that was coercion.
Craig Bickmore, executive director of the New Car Dealers of Utah, said the bill is needed to level the playing field with manufacturers who can subtly coerce dealers through incentives, programs, methods and pricing they believe are unfair.
Senators on the committee urged both sides to try to work out differences as the bill progresses.
Lee Davidson