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West Virginia Bill Aims to Ban Over-the-Air Updates, Direct Car Sales
The bill states any fixes or updates to a car must be applied through the dealership, not directly by the automaker.
I don't live in WV but this kind of legislation could be a slippery slope setting precedent for other states and this seems like the kind of BS also likely to get proposed here in TX.
The bill states any fixes or updates to a car must be applied through the dealership, not directly by the automaker.
I don't live in WV but this kind of legislation could be a slippery slope setting precedent for other states and this seems like the kind of BS also likely to get proposed here in TX.
A proposed West Virginia bill outlines multiple new strict guidelines for automakers to adhere to in their relationship with dealership networks, including a ban on some (increasingly prevalent) over-the-air software updates that change the driving functionality of the car. Updates to mapping and infotainment systems would still be kosher, but anything that changes how the car drives could soon be off the table, including important safety updates.
The new motion, introduced by the West Virginia automotive dealership trade association, according to GM Authority, is an amendment to current West Virginia House Bill 4560. The previous version simply mentioned all warranty and recall repair work had to be performed by a dealership, but the new text is what stipulates new rules for the burgeoning trend of over-the-air driving updates. Here's what it says:
"Except for experimental low-volume not-for-retail sale vehicles, cause warranty and recall repair work to be performed by any entity other than a new motor vehicle dealer, including post-sale software and hardware upgrades or changes to vehicle function and features, and accessories for new motor vehicles sold by a licensed new motor vehicle dealer. Provided however, this language shall not include any post-sale software upgrades to the motor vehicle's navigation or entertainment system. "
Over-the-air (OTA) updates, where an automaker can tweak, update or repair glitches, features and hardware with software downloaded into the car's computer system over an internet connection, are a relatively new feature in modern cars. The concept allows minor fixes to be rolled out as soon as they are ready to go in the car, without the owner or operator ever having to actually take the car to a service station.
Luxury vehicles more bent toward the tech-friendly crowd have been the early adopters, especially the Tesla Model S, Chevy Bolt, Lucid Air, Porsche Taycan, and more. OTA updates are a useful tool, and as more cars produced come with onboard data connections, it's a tool that's spreading rapidly.
If you're wondering why dealers would want you to need to drive your car to the dealership for any non-infotainment system update, well it of course is all about money. It would seem the West Virginia dealer's association views OTA updates as a potential financial risk. Since there are no parts costs in software fixes, dealers don't want to see the labor charges for any vehicle updates (warranty or recall related or otherwise) dry up, as well, just because your car is connected to the internet.
Dealerships also recognize the importance of getting you to their lots to service your car: you can shop for a new one while you wait. And that's why the proposed updates to the bill would also ban automakers from selling vehicles directly to customers in WV outside of the dealer model. From the bill:
"Except as may otherwise be provided in this article, no manufacturer or franchisor may sell, directly or indirectly, including, but not limited to, accepting orders or reservation for sale, lease, exchange or other conveyance of a new motor vehicle, offers for sale, lease, exchange or other conveyance a new motor vehicle, financing the sale, lease, exchange or other conveyance of a new motor vehicle, advertising to sell, lease, exchange or convey a new motor vehicle, offers through a subscription or like arrangement, displaying new motor vehicles, offering vehicle test drives or demonstrations of new motor vehicle functions or features, any new motor vehicle to a consumer in this state, except through a new motor vehicle dealer holding a franchise for the line-make covering such new motor vehicle. "
This part is similar to other nationwide bans on direct-sales, which are often also heavily defended by local dealership trade groups. You may remember Tesla taking quite a few fights to states like Michigan, where direct sales to customers are not allowed and cars must be sold through a franchised dealership network. Today, Tesla has to sell cars to Michigan owners out of state, and established a subsidiary company to open servicing locations in the state.
Obviously, these new proposals in HB4560 would be bad for consumers in West Virginia. First, their cars would no longer be allowed to receive potentially significant instant updates that could impact all aspects of their car, from driving range, interior controls, drive-mode settings, and safety system updates. Instead, it would put a cost on those things for customers directly, both in time spent getting the car needlessly serviced, and in the potential dealer fees you'll have to pay for something that's free to owners in other states.
On top of that, if you wanted to avoid the dealership model altogether to buy a new car for yourself, you would not be allowed to without going out of the state. We don't see any upside for the vehicle owner in the proposed legislation, and CleanTechnica reports a lobbying group, Alliance for Automotive Innovation that represents many Japanese automakers, publicly spoke out against the proposals. The bill in its current form has nine sponsors in the State House and passed through its second reading today; we expect more lobbying groups or potential statements from automakers and other groups until the bill passes, or the proposals are modified.
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