Rivian Sues Ohio Dmv Over Partial Ban On Direct Car Sales

Rivian has revenge a suit against Ohio's Department of Motor Vehicles because of nan state's partial prohibition connected nonstop car sales, The Verge reports. The institution says that nan prohibition "reduces competition, decreases user prime and drives up user costs and inconvenience." Rivian believes Ohio's rule is peculiarly unfair because it contains a carveout for nan company's competitor Tesla.

Ohio currently requires nan authorities DMV to not supply a dealership licence to "a manufacturer, aliases a genitor company, subsidiary, aliases affiliated entity of a manufacturer, applying for a licence to waste aliases lease caller aliases utilized centrifugal vehicles astatine retail." The rule keeps car income successful nan hands of independently owned car dealerships — isolated from for Tesla. An objection was created for Tesla successful 2014, The Columbus Dispatch writes, aft nan EV shaper reached an statement pinch nan Ohio Dealership Association. Now cars successful nan authorities are sold done accepted car dealerships, and 3 dealerships owned and operated by Tesla.

"Rivian believes that consumers should beryllium capable to take nan vehicles they purchase," Rivian's Chief Administrative Officer Mike Callahan shared successful a statement. "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."

The company's suit does a bully occupation of laying retired nan illogical business Ohio has created pinch its ban. Rivian is allowed to execute repairs connected cars successful nan authorities and present cars purchased out-of-state to Ohioans. "Nonsensically, nan point that Rivian cannot do is really complete nan waste of Rivian vehicles successful Ohio," nan institution writes. "This imposes an bonzer load connected Ohio consumers and Rivian for nary morganatic reason."

As The Verge notes, bans connected nonstop car income person historically beryllium to forestall large, established car companies from having a monopoly connected nan waste of their ain cars. Going nonstop to user is 1 of nan ways EV makers person differentiated themselves from older brands, thing companies for illustration Tesla and Rivian can't do successful states pinch bans. Rivian could effort and onslaught a woody for illustration Tesla, but filing a national suit suggests nan institution could beryllium aiming to triumph a bigger, much lasting change. Rivian has achieved akin wins successful nan past. The authorities of Illinois sued to extremity Rivian and Lucid Motors from trading straight to consumers successful 2022, but yet lost.