Car Dealers Sue Rivian, Secretary Of State Over EV Sales

[TruckElectric]

Car Dealers Sue Rivian, Secretary Of State Over EV Sales

By RYAN DENHAM • 2 HOURS AGO

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  Rivian already had 890 employees in Normal as of early March, with plans to hire hundreds more soon.
  ERIC STOCK / WGLT

A group of Illinois car dealers has filed a lawsuit against Rivian and Illinois Secretary of State Jesse White, alleging that plans to sell electric vehicles directly to consumers—without going through a dealer—are illegal.

The lawsuit, filed in Cook County court, is part of a nationwide legal fight between legacy auto dealerships and young EV companies like Tesla and Rivian. Tesla, as the country’s most established EV manufacturer, was the first to confront the issue. Rivian is apparently next.

The new lawsuit was filed Thursday in Cook County court. At issue is whether Rivian (or any manufacturer) can sell new vehicles directly to consumers. That’s already in motion, with plans to open showrooms (including one in Chicago) while also selling Normal-made vehicles online.

The Illinois Automobile Dealers Association argues state law prohibits manufacturers from running a new-vehicle franchise. That trade group and its allies say “independent dealers are vital to the state’s economy and safety and underly the legislature purpose behind the Vehicle Code and the (Illinois Motor Vehicle Franchise Act).” They argue the Illinois Secretary of State’s office has “abandoned its enforcement role” and “bowed to political pressure” by agreeing to lessen its licensing requirements for certain new-to-the-market manufacturers, first Tesla and now Rivian.

“The (Secretary of State) is turning a blind eye to Rivian’s unlicensed sales operations,” the car dealers claim in their lawsuit.

The lawsuit was first reported by Crain’s Chicago Business.

The car dealers are asking a judge to issue an injunction to stop Rivian from directly selling or dealing new EVs, unless it gets a license from the state or enters into an “arms-length contract with an unaffiliated Illinois licensed motor vehicle dealer” for its sales.

The Secretary of State’s office is apparently leaning on legal guidance from the Illinois attorney general’s office that states the law “does not expressly require newly established motor vehicle manufacturers to establish and utilize franchise dealerships for the sale of new motor vehicles in Illinois,” according to the lawsuit, which disputes that legal finding.

Tesla has litigated direct-to-consumer sales in many states through the years, including in Illinois. Tesla eventually reached a consent order with the car dealers and Secretary of State’s office in 2019. That allows Tesla to get dealer licenses, but only up to 13 of them, according to the lawsuit.

Rivian had no comment on the lawsuit Friday. A spokesperson for the Secretary of State's office says they're reviewing the lawsuit and will do so with the attorney general's office.

Rivian will make its electric vehicles at its manufacturing plant in Normal, with billions in investment from Amazon, Ford and many other backers. The company already had 890 employees in Normal as of early March, with plans to hire hundreds more soon.

This story will be updated.


SOURCE: WGLT

 

[nitrohuck]

Sounds a lot like taxi drivers getting all up in arms because Uber was utterly destroying their overpriced business model...

Innovators gonna innovate... car dealerships are letting out their death cry as they see the end is in sight... sorry, you took advantage of people for eons, everyone dreads the dealership experience, and now your only way to try and grasp power is to sue the innovative companies who are happily bypassing you... ?

 

[Crissa]

Sounds a lot like taxi drivers getting all up in arms because Uber was utterly destroying their overpriced business model...

No, Uber was specifically skipping the safety, licensing, insurance, labor law, and taxation.

Like, everything about hiring someone to drive, it was skipping. And it wasn't allowing taxi drivers to sign up for the system.

Rivian and Tesla aren't skipping paying taxes, their employees, or anything. They just want to sell and service their cars without someone marking that up.

On one hand, locally owned businesses are better for a community. On the other hand, this is a manufactured good that won't really employ many locals either way.

-Crissa

 

[Eye of Elon]

No, Uber was specifically skipping the safety, licensing, insurance, labor law, and taxation.

Like, everything about hiring someone to drive, it was skipping. And it wasn't allowing taxi drivers to sign up for the system.

Rivian and Tesla aren't skipping paying taxes, their employees, or anything. They just want to sell and service their cars without someone marking that up.

On one hand, locally owned businesses are better for a community. On the other hand, this is a manufactured good that won't really employ many locals either way.

-Crissa

Safety? Have you ever taken a ride in a taxi?

 

[Crissa]

Safety? Have you ever taken a ride in a taxi?

Have you ever taken a ride in an Uber?

If you think a taxi is unsafe, well, an Uber doesn't even meet those baselines for safety.

-Crissa

 

[TruckElectric]

On one hand, locally owned businesses are better for a community

In reference to car dealerships they will still be around but only as service centers, repair shops.

 

[TruckElectric]

Have you ever taken a ride in an Uber?

If you think a taxi is unsafe, well, an Uber doesn't even meet those baselines for safety.

I have taken both taxi cabs and Uber. In comparison Uber was much safer overall. I once had to tell a taxi driver he was driving on the wrong side of the road in broad daylight(4 lanes 2 each direction) while driving over a bridge. I think he said he thought it was one way.

Taxi drivers are notorious for taking longer routes than what is called for. I caught one doing it.

Also had a Taxi driver steal my credit card number and used it for dining out. I didn't have enough cash so I used a credit card and he had one of those manual credit card imprinters so I guess that is how he stole the numbers from it. My credit card company's fraud department caught it and called me about it some charges that I said weren't mine so they took them off. I did explain what I think happened how they could have got the card numbers.

 

[Crissa]

I have taken both taxi cabs and Uber. In comparison Uber was much safer overall. I once had to ...

....Anecdotes aren't data. And Uber drivers don't have to qualify for the same safety rules and testing that those drivers did.

-Crissa

 

[TruckElectric]

....Anecdotes aren't data.

Then why did you ask "Have you ever taken a ride in an Uber?"

 

[Crissa]

Then why did you ask "Have you ever taken a ride in an Uber?"

To make you think about what you wrote.

It didn't work.

-Crissa

 

[Cyberman]

It's entertaining to watch the old guard spazz out when they see the end of the road coming up ahead... car dealers are, as we know, a bunch of con artists, and they're going to fight this every step of the way.