Regional
10:47 am
Wed February 10, 2010

NM Lawmakers Approve Auto Dealer Protections

New Mexico – Lawmakers have approved a proposal to provide financial protections to New Mexico automobile dealers if a car manufacturer terminates their franchise.

The legislation came in response to General Motors and Chrysler dropping dealerships last year as part of a restructuring of the financially troubled auto industry.

The House and Senate unanimously passed separate bills Tuesday that will require auto manufacturers to buy back a dealer's inventory of vehicles, signs and special equipment if a franchise is canceled. Dealers also will receive compensation for idled buildings and property.

Before the legislation is sent to the governor, the House or Senate must approve a bill passed by the other chamber.

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The auto dealership bills are HB93 and SB58.

Copyright 2010 The Associated Press.