Still, franchise law changes could open the door to direct sales by traditional automakers, putting at risk millions of dollars in investment that dealers spend on their stores, said Len Bellavia, founding partner of Bellavia Blatt PC, a law firm that represents franchised dealers. Bellavia said he is not involved with any of the legislation.
Scott West, general manager of Prestige Imports, which sells Porsche and Audi vehicles in Lakewood, Colo., testified last week that he is finalizing a nearly $18 million Porsche dealership that incorporates fast-charging infrastructure for current and future electrified vehicles. He told Automotive News via email that the project should be complete in 2022.
It’s “not realistic that any of our manufacturers would even dream of doing this, but passage of this bill takes that investment — emotional, monetary investment — and pits us against the very manufacturers and allows them the opportunity to compete directly against us,” West testified.
The Colorado dealers association says Rivian’s effort is premature, since the company has not applied for a dealer license and been denied.
Chen told Colorado lawmakers Rivian is scouting for sites for factory stores and would apply for a license once locations are identified. He said Rivian believes the bill is necessary to clarify the company’s ability to sell directly to consumers.
The Colorado dealers association, however, contends Rivian already can. Colorado’s dealer franchise law contains an exception for automakers to operate a dealership “if the manufacturer has no other dealers of the same line-make in this state,” according to the statute.
Dealer associations elsewhere also are keeping an eye on legislation in their states.
A Washington bill that would have allowed direct sales by automakers that produce only all-electric vehicles is presumed dead after failing to advance out of a committee by this month, according to the state legislature and Vicki Fabre, executive vice president of the Washington State Auto Dealers Association.
In Pennsylvania, state Rep. John Lawrence wrote in a memo in August 2019 that a direct-sales exception granted for Tesla in 2014 needs to be adjusted as other companies enter the market. He introduced House Bill 1901 in October 2019, and it remains in committee. Chen said Rivian has been involved in legislation in Pennsylvania.
“My bill opens that up to allow for the sale of more electric vehicles in the commonwealth. Certainly, we want to see more folks buying electric cars, and we do not want bureaucracy standing in the way,” Lawrence wrote in an email to Automotive News.
John Devlin, president of the Pennsylvania Automotive Association dealer group, said it opposes Rivian trying to sell EVs directly to consumers in its state, largely because of Ford’s investment in the company.
Ted Smith, who leads Florida’s state dealer association, said he has heard Rivian is considering trying to enter the state.
Rivian was granted a dealer license in Arizona on Jan. 23, a spokesman for the Arizona Department of Transportation said. Rivian can sell new, used or wholesale vehicles just as other brand dealers can, the spokesman said.
Audrey LaForest, Michael Martinez, Hannah Lutz, Larry P. Vellequette, Urvaksh Karkaria and Tom Worobec contributed to this report.
