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.
The auto dealership bills are HB93 and SB58.
Copyright 2010 The Associated Press.