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California dealers demand Honda stop Afeela direct-to-consumer sales
CDG News Alert (1 min. read)
Anna del Villar
May 20, 2025
Via Afeela
Driving the news: Honda is facing legal heat from California car dealers who are demanding that the automaker stop selling its new Afeela electric vehicles directly to consumers.
For context: The California New Car Dealers Association (CNCDA) has sent a cease-and-desist letter to both American Honda and Sony Honda Mobility, arguing they're violating state franchise laws by taking deposits from Californians while completely sidestepping Honda and Acura dealerships.
Why it matters: This dispute centers on California's Vehicle Code and Assembly Bill 473, which took effect in January 2024. The law explicitly forbids manufacturers from selling vehicles directly through affiliated entities (precisely what dealers allege is happening with the Sony-Honda partnership).
But this isn't an isolated incident. The association filed a lawsuit against Volkswagen and Scout Motors back in April for the same reason.
“California law is crystal clear. Automakers and their affiliates are not allowed to compete with their own franchised dealers through direct sales,” said Brian Maas, CNCDA President. “We are fully prepared to take legal action to defend our Honda and Acura dealer members.”
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