Vehicle makers would pay dealers for warranty and recall work

Manufacturers would pay dealers the same labor rate they charge customers for warranty repairs. These provisions cover motor vehicle dealers and franchised all-terrain vehicle dealers seeking payment for warranty work. Dealers would support rate requests with qualifying repair orders. Several kinds of work, including routine maintenance and discounted repairs, would not count in the rate calculation. A manufacturer or distributor could reject a request on specified grounds, such as missing information or evidence that the requested time was unnecessary or did not follow repair procedures. Manufacturers or distributors would have 45 days to answer a complete request for extra time on a specific repair and 240 days to answer a request to change a general time allowance. If they miss the deadline, the request would be approved, unless the response period is paused for a reason beyond their control.

Manufacturers would pay eligible dealers monthly compensation for certain recalled used vehicles held under a stop-sale or do-not-drive order. This covers new vehicle dealers holding for sale an affected used vehicle of a make they are franchised to sell or authorized to repair. The vehicle must be subject to a federal safety or emissions recall, with parts or a remedy unavailable for at least 30 days. It must meet the stated dealer inventory or trade-in rules, and the dealer must be franchised to sell or authorized to repair that make. Total payments could not exceed the vehicle's average trade-in value. This payment could not be combined with another state or federal recall compensation remedy. Payments would begin 30 days after the stop-sale or do-not-drive order and end when parts or a remedy become available, or the dealer sells, trades, or otherwise disposes of the vehicle.

Manufacturers and distributors would review and pay dealer warranty claims under set deadlines. These claim rules cover dealers submitting claims under this section to a vehicle manufacturer or distributor. A claim not rejected in writing within 30 days would count as approved, with payment due within 30 more days. If a claim is incomplete or inaccurate, the manufacturer or distributor would have to notify the dealer and allow at least five business days to provide missing or corrected information. The review period would start when the manufacturer or distributor receives the completed claim form. The payment period would start when the claim is approved.