AG Opinion Request. Testing the Waters on Manufacturers & Dealerships.

Opinion Request, RQ-0170-KP, from texas Department of Motor Vehicles wants the Attorney General to answer this question:

  • Whether wholly owning a motor vehicle manufacturer results in affiliation with that manufacturer for purposes of section 2301.476(a)(2) of the Occupations Code.

 

What does DMV point out in its opinion request?

  • Forest River (FR) is a vehicle manufacturer
  • Berkshire Hathaway Automotive  (BHA) operates dealerships
  • Berkshire Hathaway (BH) owns Forest River
  • BHA is a manufacturer under Texas law because it owns FR
  • If BH relinquishes control over FR but maintains ownership, will BH no longer be a manufacturer?
  • There’s also 2 competing standards to determine manufacturer ownership- “affilaited with” and “under common control with”, which standard complies? and if it’s common control can it be relinquished?

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