[Auto] Of Course Michigan Dealerships Are Trying to Block Rivian and Other EV Makers From Direct Sales

[-Apex]

Of Course Michigan Dealerships Are Trying to Block Rivian and Other EV Makers From Direct Sales
A Michigan bill introduced in the state legislature last week could ban the sales model of one of Michigan's own companies: electric truck maker Rivian. According to Bloomberg, the bill would prohibit any automakers besides Tesla from selling cars directly to consumers without going through a dealership, and also block those automakers from owning and operating repair and service facilities. 

Tesla, of course, already has an exemption to Michigan's automotive sales franchise laws, so dealerships in the state are now pushing to make that exception a one-and-done deal now that EV startups like Rivian and Lucid are hoping to follow suit. Yet that deal also took years for Tesla to win, and Bloomberg notes that it's still a bit of a workaround. Tesla gets to indirectly own its Michigan service centers through a subsidiary, and the automakers is allowed to deliver vehicles to buyers without having buyers leave the state. 

Michigan dealerships, however, don't believe that the Tesla deal changes anything. 

"That settlement was based on a clear set of specific facts for a specific time," Michigan Automobile Dealers Association Executive Vice President Terry Burns told Bloomberg. The MADA represents roughly 600 new-car dealers in the state.