                                 CODE OF VIRGINIA

OPERATION OF DEALERSHIP BY MANUFACTURER (§ 46.2-1572)

It shall be unlawful for any motor vehicle manufacturer, factory branch,
distributor, distributor branch, or subsidiary thereof to own, operate, or
control any motor vehicle dealership in the Commonwealth. This prohibition
includes the ownership, operation, or control of any dealership of a new
line-make established by a manufacturer, factory branch, distributor, or
distributor branch, licensed as such by the Department, or a subsidiary thereof
or a company affiliated through ownership of the manufacturer, factory branch,
distributor, or distributor branch of at least 25 percent of the equity of the
company. However, this section shall not prohibit:

1. The operation by a manufacturer, factory branch, distributor, distributor
branch, or subsidiary thereof, of a dealership for a temporary period, not to
exceed one year, during the transition from one owner or operator to another;

2. The ownership or control of a dealership by a manufacturer, factory branch,
distributor, distributor branch, or subsidiary thereof, while the dealership is
being sold under a bona fide contract or purchase option to the operator of the
dealership;

3. The ownership, operation, or control of a dealership by a manufacturer,
factory branch, distributor, distributor branch, or subsidiary thereof, if the
manufacturer, factory branch, distributor, distributor branch, or subsidiary has
been engaged in the retail sale of motor vehicles through the dealership for a
continuous period of three years prior to July 1, 1972, and if the Commissioner
determines, after a hearing on the matter at the request of any party, that
there is no dealer independent of the manufacturer or distributor, factory
branch or distributor branch, or subsidiary thereof available in the community
to own and operate the franchise in a manner consistent with the public
interest;

4. The ownership, operation, or control of a dealership by a manufacturer,
factory branch, distributor, distributor branch, or subsidiary thereof if the
Commissioner determines, after a hearing at the request of any party, that there
is no dealer independent of the manufacturer or distributor, factory branch or
distributor branch, or subsidiary thereof available in the community or trade
area to own and operate the franchise in a manner consistent with the public
interest;

5. The ownership, operation, or control of a dealership dealing exclusively with
school buses by a school bus manufacturer or school bus parts manufacturer or a
person who assembles school buses; or

6. The ownership, operation, or control of a dealership dealing exclusively with
refined fuels truck tanks by a manufacturer of refined fuels truck tanks or by a
person who assembles refined fuels truck tanks. Notwithstanding any contrary
provision of this chapter, any manufacturer of fire-fighting equipment who, on
or before December 31, 2004, had requested a hearing before the Department or
the Commissioner in accordance with subdivision 4 for licensure as a dealer in
fire-fighting equipment and/or ambulances may be licensed as a dealer in
fire-fighting equipment and/or ambulances.

HISTORY: 1988, c. 865, § 46.1-550.5:31; 1989, c. 727; 1990, c. 41; 2005, c.
456; 2023, cc. 310, 311.