Rivian sues to promote its EVs straight in Ohio | TechCrunch

Rivian has filed a lawsuit in Ohio to find a way promote its electrical autos on to customers within the state — the newest swing in a perpetual combat between up-and-coming American automakers and the entrenched and highly effective dealership foyer.

The corporate sued the registrar of Ohio’s Bureau of Motor Vehicles (BMV) on Monday in federal court docket, claiming the state is harming customers by blocking direct gross sales. Rivian is at present in a position to promote EVs on to customers in 25 states and in Washington D.C. Ohio’s BMV didn’t instantly reply to a request for remark.

“Ohio’s prohibition of Rivian’s direct-sales-only enterprise mannequin is irrational within the excessive: it reduces competitors, decreases shopper alternative, and drives up shopper prices and inconvenience — all of which hurt customers — with actually no countervailing profit,” legal professionals for the corporate wrote within the criticism.

Rivian is asking the court docket to permit the corporate to use for a dealership license so it will possibly promote autos straight. Ohio clients have to purchase from Rivian autos from places in different states the place direct gross sales are allowed. The automobiles are then shipped to Rivian service facilities inside Ohio.

Permitting Rivian to promote straight wouldn’t be treading new authorized floor, the corporate argues in its criticism. Tesla has had a license to promote in Ohio since 2013 and may promote on to customers.

What’s stopping Rivian is a 2014 regulation handed by the state’s legislature. That regulation, which Rivian says got here after an intense lobbying effort by the Ohio Vehicle Sellers Affiliation (OADA), successfully gave Tesla a carve-out and blocked any future producers from buying the required dealership licenses. (OADA didn’t instantly return a request for remark.)

“Client alternative is a bedrock precept of America’s economic system. Ohio’s archaic prohibition in opposition to the direct-sales of autos is unconstitutional, irrational, and harms Ohioans by lowering competitors and selection and driving up prices and inconvenience,” Mike Callahan, Rivian’s chief administrative officer, mentioned in a press release.

Rivian has received authorized fights over direct gross sales earlier than. In 2021, Rivian and Lucid Motors have been granted dealership licenses to promote EVs within the state of Illinois. That state’s vendor affiliation sued to attempt to block Rivian and Lucid from promoting straight, however ultimately failed.

Lucid Motors, in the meantime, filed a lawsuit of its own in Texas in 2022 in a problem to that state’s direct-sales ban. The court docket dominated in opposition to Lucid earlier this 12 months, however the firm has appealed, federal court docket information present.