Senate approves bill supporting auto dealers in event of recall
Canada's Senate has approved a bill that could have an enormous impact on relationships between auto dealers, auto makers, and the government.
S-2 is a vehicle safety bill that puts a new financial burden on the shoulders of auto makers. In the event of a recall that takes place before a vehicle has been sold to a customer, the maker of said vehicle must provide financial compensation to the dealer. The bill also expands the power of the Transportation Minister to demand a company issue a recall and fine manufacturers for non-compliance, and also gives Transport Canada inspectors new enforcement powers.
As one would expect, auto manufacturers are not pleased with this move. Already, the presidents of both Global Automakers of Canada and the Canadian Vehicle Manufacturers Association have spoken out against the bill and vowed to voice their dissent during the upcoming House of Commons discussions that will take place to determine whether the bill should be further advanced.
On the other side of things, auto dealers argues that this helps to level an uneven playing field between them and the auto makers. The Senate's approval of the bill mainly came to fruition due to significant lobbying on the part of the Canadian Automobile Dealers Association.
In a broader sense, this successful lobbying effort speaks to the potential within the Senate as it is currently made-up to influence legislative change. Unlike the House of Commons, where almost all representatives are affiliated with a particular political party, almost half of Canada's Senators identify as being part of an Independent Senators Group or non-affiliated altogether. Those looking to make a case could theoretically benefit quite a bit by appealing to individuals who aren't bound by party lines to such an intense degree.