Newspaper article THE JOURNAL RECORD

Commission Increasing Scope of Conversion Study

Newspaper article THE JOURNAL RECORD

Commission Increasing Scope of Conversion Study

Article excerpt

When the Oklahoma Motor Vehicle Commission voted in June to repeal a regulation dealing with converting and selling vans, little did it know that several other secondary manufacturers would be caught in the web.

Not only are dealership and manufacturing licenses of several companies under review, but the scope of the commission's study has broadened.

Commissioners Tuesday directed Executive Director Noel Kruger to begin a study of truck chassis-mounted equipment distributors to determine if they should be licensed as dealers, manufacturers or distributors.

The action came after the commission renewed a distributor license for R.A. Phelps Equipment Co. Inc. of Tulsa which is a distributor for an equipment manufacturer in Illinois.

Action came after Phelps made several requests for a license renewal, although he requested the wrong license.

In his business, Phelps told commissioners, he will purchase a truck chassis from a francised dealer, send the chassis to the Illinois factory to have it mounted with heavy equipment used by governments and large contractors. The truck and equipment are sold as one unit to the end user, on a bid basis.

Trucks and equipment are matched up only after Phelps has been selected as supplier through the competitive bid process, he said.

"I don't keep anything in stock," he said. "Every sale is different, no two municipalities or contractors want the same thing."

Phelps' company is not a franchised dealer of any chassis manufacturer, nor does his company perform any modification or assembly work on the chassis, he said. Because of this, he was ineligible for a dealer or manufacturer license.

However, to be able to drive the vehicle from the Illinois equipment manufacturer to the end user, a state-issued license is required, unless Phelps wanted to pay sales taxes and sell the unit as a used vehicle, he said.

As a compromise, he was awarded a distributor license.

A similar company, Anderson Allwheel Drive and Equipment Co., also of Tulsa, was denied a distributor permit. Company officials had written to the commission requesting renewal of a dealers license, saying it was a franchised dealer for all American chassis manufacturers. …

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