ICE Dealers and their Lobbyist Will keep Rivian Sales & Service out of the Carolinas

[TDWRT1]

Pge 139 from the IPO S-1 that dropped tonight. I LOVE the Carolinas, but Gawd Damn we suck so bad some times.

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By contrast, 28 states restrict our ability to obtain a dealer license to sell within those states. Such states are Alabama, Arkansas, Connecticut, Georgia, Indiana, Iowa, Louisiana, Kansas, Kentucky, Maine, Michigan, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Texas, Washington, West Virginia, and Wisconsin. With respect to owning and operating a physical warranty service location, the restrictions are substantially fewer. Only eight states prohibit us, as a manufacturer, from directly or indirectly owning or operating a service center providing warranty service. Those states are Alabama, Louisiana, New Jersey, New Mexico, North Carolina, Pennsylvania, South Carolina, and West Virginia.

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[CommodoreAmiga]

So, what does that really mean for anyone in those states? Does Rivian have a plan to deliver to them? I assume they must, since their Insurance division is licensed in 48 states. Why go through the trouble of insuring in a state you can’t do business in?

 

[kurtlikevonnegut]

So, what does that really mean for anyone in those states? Does Rivian have a plan to deliver to them? I assume they must, since their Insurance division is licensed in 48 states. Why go through the trouble of insuring in a state you can’t do business in?

I don't know about NC, but my understanding of the law in SC also prohibits Rivian from delivering a vehicle in SC. I assume this means that anyone who lives in SC will have to arrange pickup out of state at either a private residence, service center, or factory pickup.

 

[TDWRT1]

I don't know about NC, but my understanding of the law in SC also prohibits Rivian from delivering a vehicle in SC. I assume this means that anyone who lives in SC will have to arrange pickup out of state at either a private residence, service center, or factory pickup.

I expect to pick mine up in Normal. My in-laws live there and I spent a large chunk of my youth there too. If NC is a legit delivery location (It HAS to be. There is a Tesla dealer in Charlotte) i'll offer my residence in South Charlotte for those who need a convenient spot - for a short test drive. ; )

 

[CommodoreAmiga]

I don't know about NC, but my understanding of the law in SC also prohibits Rivian from delivering a vehicle in SC. I assume this means that anyone who lives in SC will have to arrange pickup out of state at either a private residence, service center, or factory pickup.

Found this on page 139:

”We believe that, as a matter of interstate commerce, we may sell a Rivian motor vehicle to any consumer in any state in the United States from a legally licensed Rivian retail location. That customer may contact a licensed Rivian retail location through the internet, by telephone or visiting the location directly. However, states that prohibit direct sales also restrict traditional sales activities. Accordingly, in order to test drive a vehicle or have an in-person discussion with a Rivian salesperson regarding issues such as price, financing, trade-ins, options or similar purchase-related topics, a consumer residing in a direct sales-prohibited state would be required to either contact us through electric means (e.g., internet or telephone) or by traveling out of their home state to visit a licensed Rivian retail location in another state. With respect to service, we are prohibited from providing warranty service from an established location within the eight states identified above. Service for customers residing in those states would be from a mobile unit dispatched from a licensed service location in a nearby state where direct warranty service is allowed or by that customer driving their Rivian vehicle (or having it towed) to a state which allows us to have a physical service location and perform warranty service activities.”

So my question becomes: They’ve said they don’t want to deliver where they don’t have service available…. But their S1 filing says that they’d have to dispatch a mobile tech from another state (expensive) and if a more serious repair is needed the vehicle would have to be towed to another state. So which is it?

I guess I’m going to be writing some lawmakers to express my displeasure with this anti-competitive law.

As a side-note, couldn’t Rivian open a new company that only does service? Maybe partner with Cox and they could collectively own the repair company. I’m not a lawyer, but the way I read this info it seems that as long as the entity was sufficiently isolated from the “manufacturer” they could operate in a service capacity in the state.

Traveling somewhere for delivery does not bother me one bit. I just want to know that 1) I can get my vehicle in a reasonable amount of time and not wait years and 2) I can get service in a reasonable amount of time.

 

[kurtlikevonnegut]

As long as it's the same as when I bought a car in Atlanta back in 2010 and I only have to pay SC sales tax (capped at $500) I'm fine with a drive to Atlanta to test drive and take delivery.

The problem right now is that the Atlanta Service Center seems to be at about the same stage as the landscaping I want to do in my front yard. Plans have been submitted but not much else.

 

[DucRider]

As long as it's the same as when I bought a car in Atlanta back in 2010 and I only have to pay SC sales tax (capped at $500) I'm fine with a drive to Atlanta to test drive and take delivery.

The problem right now is that the Atlanta Service Center seems to be at about the same stage as the landscaping I want to do in my front yard. Plans have been submitted but not much else.

And Georgia is also on the "No sales allowed" list

 

[kurtlikevonnegut]

And Georgia is also on the "No sales allowed" list

But they aren't on the "no sales activity" list, which should mean the ability to conduct a test drive there and have any questions asked before completing my order online. Or at least that's how I understand it.

 

[Autolycus]

But they aren't on the "no sales activity" list, which should mean the ability to conduct a test drive there and have any questions asked before completing my order online. Or at least that's how I understand it.

I think that's correct. but I haven't researched the Georgia law myself. I'm really hoping the GA General Assembly finally passes a better law in 2022. It got punted in 2021 I think largely because they didn't think it really mattered yet. Rivian and Lucid weren't actually making cars for sale yet. They will be by the time the issue comes up again.

Random side note: I think the current situation probably bodes well for service centers in August and/or Savannah! And probably Knoxville to get service for Western NC.

 

[OldGoat]

I'm hoping they pull a Tesla and team up with the Catawba Indian Nation in York county, SC (I think it was NM where Tesla did this). (For those that don't know, York County borders NC to the south and is part of the Charlotte metropolitan area.) Rivian would be able to handle the almost 3mm people in that area from that location.

 

[Dbeglor]

So my question becomes: They’ve said they don’t want to deliver where they don’t have service available…. But their S1 filing says that they’d have to dispatch a mobile tech from another state (expensive) and if a more serious repair is needed the vehicle would have to be towed to another state. So which is it?

They've said that will be the case initially, but not forever. So, if I were in one of those states I'd adjust my timeline expectations accordingly (though still no specifics). They definitely don't seem likely to deliver in NC until they open service in a nearby state (or are in progress to).

 

[CommodoreAmiga]

They've said that will be the case initially, but not forever. So, if I were in one of those states I'd adjust my timeline expectations accordingly (though still no specifics). They definitely don't seem likely to deliver in NC until they open service in a nearby state (or are in progress to).

Yet they still insist all LEs will be delivered by mid-2022... I don't expect to see a service center in VA before then.

 

[Dbeglor]

Yet they still insist all LEs will be delivered by mid-2022... I don't expect to see a service center in VA before then.

That's what I was saying, they don't intend to require that for very long. When that transition happens is anyone's guess, but facts suggest it's not very long. It makes sense to start where you have infrastructure in place, but at some point you hit GO and deliver everywhere to hit the timeline you want. Service centers involve too many variables they don't control, on top of the ones they already have in manufacturing.

 

[MattCanesR1T]

Jeff Jackson is going to be at Trophy on Maywood tonight in Raleigh - anyone planning on going? He in the past has been an advocate for EVs/clean energy

 

[MattCanesR1T]

So never heard from my local (Wake) NC senator/representatives about did get a response from Jeff Jackson's legislative assistant:

MattCanesR1T,

I have passed on your considerations concerning EV adoption to Senator Jackson. He is open to considering such options, and will discuss them with his colleagues. Thank you for reaching out.

Alexander Crespo

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