Rivian Sues Ohio Over Ban on Direct Car Sales
Rivian has filed a lawsuit in an Ohio court to overturn the ban on direct sales of its electric vehicles in the state. Under current law, a manufacturer can service, lease, and deliver cars in Ohio but is not allowed to finalize purchase and sale agreements on-site. If Rivian wins, it could set a precedent for other manufacturers, such as Tesla, Lucid, and Scout, which are also fighting similar restrictions.
Currently, Ohio residents can buy Rivian vehicles, but only through offices located outside the state. In the lawsuit, the company calls this situation absurd:
Ohio allows manufacturers like Rivian to perform warranty service, repair vehicles, lease them, and even sell new vehicles through dealerships outside the state. However, finalizing a deal directly in Ohio is prohibited, which creates unnecessary complications for consumers.
Why This Is Important for the Market
The National Automobile Dealers Association (NADA) actively lobbies for laws that restrict direct sales by manufacturers. However, Rivian insists that such bans limit competition and consumer choice. As stated by Mike Callahan, the company’s executive:
Consumers should have the right to choose the cars they buy. The ban on direct sales in Ohio is unconstitutional, illogical, and harms the state’s residents by limiting competition and increasing costs.
In 2021, Rivian already won a similar case in Illinois, and Tesla reached an agreement with Ohio, obtaining permission for direct sales. Now, Rivian may achieve the same result, which would open up new opportunities for the electric vehicle market in the US.
This legal battle reflects a broader trend – traditional dealerships are losing their monopoly, and manufacturers are increasingly trying to work directly with customers. If Rivian wins, it could accelerate changes in automotive retail across the country.