Rivian Sues To Sell Its Evs Directly In Ohio

Rivian has revenge a suit successful Ohio to beryllium capable waste its electrical vehicles straight to consumers successful nan authorities — nan latest plaything successful a perpetual conflict betwixt up-and-coming American automakers and nan entrenched and powerful dealership lobby.

The institution sued nan registrar of Ohio’s Bureau of Motor Vehicles (BMV) connected Monday successful national court, claiming nan authorities is harming consumers by blocking nonstop sales. Rivian is presently capable to waste EVs straight to consumers successful 25 states and successful Washington D.C. Ohio’s BMV did not instantly respond to a petition for comment.

“Ohio’s prohibition of Rivian’s direct-sales-only business exemplary is irrational successful nan extreme: it reduces competition, decreases user choice, and drives up user costs and inconvenience — each of which harm consumers — pinch virtually nary countervailing benefit,” lawyers for nan institution wrote successful nan complaint.

Rivian is asking nan tribunal to let nan institution to use for a dealership licence truthful it tin waste vehicles directly. Ohio customers person to bargain from Rivian vehicles from locations successful different states wherever nonstop income are allowed. The cars are past shipped to Rivian work centers wrong Ohio.

Allowing Rivian to waste straight would not beryllium treading caller ineligible ground, nan institution argues successful its complaint. Tesla has had a licence to waste successful Ohio since 2013 and tin waste straight to consumers.

What’s stopping Rivian is simply a 2014 rule passed by nan state’s legislature. That law, which Rivian says came aft an aggravated lobbying effort by nan Ohio Automobile Dealers Association (OADA), efficaciously gave Tesla a carve-out and blocked immoderate early manufacturers from acquiring nan basal dealership licenses. (OADA did not instantly return a petition for comment.)

“Consumer prime is simply a bedrock rule of America’s economy. Ohio’s archaic prohibition against nan direct-sales of vehicles is unconstitutional, irrational, and harms Ohioans by reducing title and prime and driving up costs and inconvenience,” Mike Callahan, Rivian’s main administrative officer, said successful a statement.

Rivian has won ineligible fights complete nonstop income before. In 2021, Rivian and Lucid Motors were granted dealership licenses to waste EVs successful nan authorities of Illinois. That state’s trader relation sued to effort to artifact Rivian and Lucid from trading directly, but ultimately failed.

Lucid Motors, meanwhile, filed a suit of its ain successful Texas successful 2022 successful a situation to that state’s direct-sales ban. The tribunal ruled against Lucid earlier this year, but nan institution has appealed, national tribunal records show.