Rivian sues Ohio over direct car sales ban

[ACDC]

https://www.engadget.com/transporta...artial-ban-on-direct-car-sales-191259497.html

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[BigSkies]

I hope Rivian wins. It would be nice if Lucid and/or Scout would join the lawsuit as well.

 

[Donald Stanfield]

The only reason to prohibit direct sales is corruption and kickbacks from dealership associations. I can buy just about anything I want directly and over the internet, so why am I required to buy cars from a dealer? I dislike the dealership experience, and I think it's anti-consumer to require it.

 

[DuoRivians]

Why sue only Ohio? It’s like half the country that does what Ohio does.

 

[mkhuffman]

In a free market, the consumer wins. Ohio appears to want the consumer to lose,

 

[emoore]

Why sue only Ohio? It’s like half the country that does what Ohio does.

I'm sure they are going to work on other states too. Too many resources to sue all the anti direct sales states at the same time.

 

[lefkonj]

Something that should have died a long time ago. Hopefully they win and it spreads to all states. Would be interesting to see how the traditional OEMs react if they win. I could see VW buying up dealerships and making them CORPORATE owned.

 

[Dave Cundiff]

When dealers have built a manufacturer's brand, as with the vast majority of legacy automobile brands, those dealers need protection against competition from the manufacturer. Otherwise the manufacturer can swoop in and annihilate the people who built their reputation.

When dealers did not build a manufacturer's brand, the manufacturer should be free to decide whether or not to create a dealer network.

Whether small or large, you deserve to enjoy what you built. You don't deserve to appropriate what someone else built. In my opinion, that's basic fairness.

I can easily support independent dealers' efforts to prevent encroachment by Ford, GM, etc. I can just as easily support Tesla's and Rivian's efforts to keep control over the distribution model they are building themselves, at their own risk.

Best to all!

 

[mkhuffman]

When dealers have built a manufacturer's brand, as with the vast majority of legacy automobile brands, those dealers need protection against competition from the manufacturer. Otherwise the manufacturer can swoop in and annihilate the people who built their reputation.

When dealers did not build a manufacturer's brand, the manufacturer should be free to decide whether or not to create a dealer network.

Whether small or large, you deserve to enjoy what you built. You don't deserve to appropriate what someone else built. In my opinion, that's basic fairness.

I can easily support independent dealers' efforts to prevent encroachment by Ford, GM, etc. I can just as easily support Tesla's and Rivian's efforts to keep control over the distribution model they are building themselves, at their own risk.

Best to all!

Good answer. I agree.

 

[waitingonanr1s]

Sounds like a great use of their limited cash...

 

[Time2Roll]

New capitalism is all about eliminating the middleman with vertical integration.
Many industries have gone this way and it will continue.

The political power and corruption of the National Auto dealer Association will be a tough nut to crack but it is coming slowly.

 

[Gen(R3)Xer]

Ohio is the seventh-most populous state in the US with almost 12 million people. It’s also bordered by 5 states (PA, WV, KY, IN, and MI) and about 60% of the U.S. population lives within 600 miles of Ohio (this matters in regard to shipping).

Ohio used to be a bellwether and a microcosm of the country, so much so that many products are tested here first before being released to the rest of the nation.

Unfortunately it’s not the state it used to be. Now it’s so gerrymandered that there isn’t equitable representation anymore. We have great cities and rural areas, beautiful parks and wildlife, and even decent people if you give them half a chance, but politics, partisanship, and corruption have destroyed this state.

Also the dealership model is archaic and borderlines on grifting with its undercarriage rust protection sprays and document fees. It needs eliminated along with the real estate market. All corrupt, outdated ways of doing business while over inflating prices and ripping off consumers. We need leaders and legislation that don’t stand for this nonsense anymore.

Rivian has won before and I hope they do it again.

 

[BigSkies]

Why sue only Ohio? It’s like half the country that does what Ohio does.

I'm not a lawyer, but I expect it has to do with Tesla's carve out for direct sales in Ohio.

I don't think there's anything fundamentally illegal/unconstitutional about a state banning direct sales. As much as we dislike the laws, it's not outside the powers of a state.

When the state starts saying no one can do direct sales except for Tesla, that likely opens up grounds for claims. Possibly related to restrictions on interstate commerce.

I believe a few other states are Tesla only direct sales.

If so, the legal strategy is probably to find one state where the lawsuit can succeed first. Suing other states will become easier once precedents have been established.

 

[Gen(R3)Xer]

I'm not a lawyer, but I expect it has to do with Tesla's carve out for direct sales in Ohio.

I don't think there's anything fundamentally illegal/unconstitutional about a state banning direct sales. As much as we dislike the laws, it's not outside the powers of a state.

When the state starts saying no one can do direct sales except for Tesla, that likely opens up grounds for claims. Possibly related to restrictions on interstate commerce.

I believe a few other states are Tesla only direct sales.

If so, the legal strategy is probably to find one state where the lawsuit can succeed first. Suing other states will become easier once precedents have been established.

Good point. I think they won in Illinois because of this (the Tesla carve out).

 

[Zoidz]

Why sue only Ohio? It’s like half the country that does what Ohio does.

Pennsylvania has the same carve out for Tesla. No matter how you slice it, it's government santioned restraint of trade/competition. Rivian has already lobbied in Harrisburg, PA at the state capitol. I have to assume Rivian's legal team is taking on specifically Ohio for a reason? Perhaps they feel it could be an easier win than other states, and set a helpful precedence for future litigation?

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