A bill in North Dakota, HB 1515, is causing concern among automakers as it could significantly increase costs for vehicle owners. The bill aims to redirect up to $22 million to franchised auto dealers for warranty or recall repairs. Currently, automakers pay dealers based on a labor time guide for warranty repairs, ensuring fair compensation.
However, HB 1515 proposes using a different labor time guide intended for independent repair shops, leading to increased costs. Automakers estimate this change could result in purchasing 50% more labor hours than actually needed, ultimately raising expenses for drivers.
Critics argue that the current system is specific, accurate, and fair, and there is no need for changes. John Bozzella, president of the Alliance for Automotive Innovation, urges legislators to block HB 1515 to protect consumers. If not, Governor Armstrong is encouraged to veto the bill to prevent additional costs for North Dakota residents.
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