[Stinger]

I found this today. What are your thoughts? I like the fact that Rivian is acting the part of a duck. Calm on the surface and paddling like **** underneath, juggling all manner of projects. This is but another.

Why Illinois Car Dealers Are Suing Rivian, Secretary Of State To Stop Direct-To-Consumer Sales

The Illinois car dealer lawsuit against electric automaker Rivian is the latest chapter in a nationwide debate over the options consumers have to buy cars.

www.wglt.org

 

[CommodoreAmiga]

Illinois needs to wise up. All states do, but Illinois in particular. Rivian is do magical things for the economy in and around Normal, IL.

 

[MIBryanH]

Illinois needs to wise up. All states do, but Illinois in particular. Rivian is do magical things for the economy in and around Normal, IL.

As does Michigan. Considering Rivian is headquartered here, you'd think MI would be more receptive, but the state legislature is not. They are protective of the dealerships.

 

[SANZCO2]

As does Michigan. Considering Rivian is headquartered here, you'd think MI would be more receptive, but the state legislature is not. They are protective of the dealerships.

A lot of things still say headquarters in Michigan but I think they actually moved it to Irvine, CA in 2020. I seem to recall reading that somewhere but cannot find it at the moment.

Wikipedia does say that but not the most reliable source....

 

[headless]

I'm surprised the dealerships even care. It's not like they're selling their brands of vehicles. Talk about control...wow!

 

[SANZCO2]

I'm surprised the dealerships even care. It's not like they're selling their brands of vehicles. Talk about control...wow!

I think the dealerships are concerned they will be obsolete with the new model and are trying to protect their investments.

A lot of places are talking about going to a model where if there is not already a dealership network setup for those manufacturers, allow direct to consumer but where there is keep it status quo. That seems like the fairest solution from my perspective as it does not impact the current infrastructures already in place.

The biggest issue for the dealerships is they need to start working a plan as we move from ICE to EV. They will end up being obsolete anyway if they continue to fight rather than working with these new vendors to do some of the service calls.

Dealers make most of their money on service/maintenance and you simply do not have as much of this required with the EVs. Using the old method for distribution just will not work, the markup they would need to add to the vehicle sales to make up the loss of the maintenance dollars would negatively impact the EV manufacturers.

 

[SunDevil2213]

I'm surprised the dealerships even care. It's not like they're selling their brands of vehicles. Talk about control...wow!

The dealers care because Rivian isn't offering them the option to sell Rivians - Rivian wants to sell direct. The dealership misses out on the 25% markup on the sale, and then the 50% markup on parts/labor for any subsequent service of the vehicle. The direct sale is seen as a huge threat to their entire business model (which is, to be fair, outdated, anti-competitive, and anti-consumer).

 

[CommodoreAmiga]

The dealers care because Rivian isn't offering them the option to sell Rivians - Rivian wants to sell direct. The dealership misses out on the 25% markup on the sale, and then the 50% markup on parts/labor for any subsequent service of the vehicle. The direct sale is seen as a huge threat to their entire business model (which is, to be fair, outdated, anti-competitive, and anti-consumer).

What brand is making 25% markup on sales???

 

[RITVT]

Everyday I wake up and think "Wow, I really wish I could buy everything through a middleman as a consumer... That would be so nice. I just love to waste time haggling!"
Then I have this dream where Ubers & Lyfts would just go back to being "awesome" yellow taxis that all took shift breaks at same time (4:00 PM when I needed my ride to the airport).
As I really come to, I am writing a check for my groceries at the store, using perfect cursive writing, wondering why I would ever want to tap my phone to pay for something?
Now fully awake, I go to the bank. I want to have that experience of writing a deposit slip, goddamit! I am not snapping a picture of this check and hoping it magically lands in my bank account.
It's such an awesome dream.
I want to buy through a dealer.
They have awesome coffee

 

[MCRNGR]

Yeah, big government mandating middleman for my own “protection”—no thanks! Second Amendment takes care of that. 😉

Meanwhile, EV Clubs in other parts are fighting the same overreach. Here’s a video I ran across fighting the same nonsense in Connecticut:

 

[headless]

I think the dealerships are concerned they will be obsolete with the new model and are trying to protect their investments.

A lot of places are talking about going to a model where if there is not already a dealership network setup for those manufacturers, allow direct to consumer but where there is keep it status quo. That seems like the fairest solution from my perspective as it does not impact the current infrastructures already in place.

The biggest issue for the dealerships is they need to start working a plan as we move from ICE to EV. They will end up being obsolete anyway if they continue to fight rather than working with these new vendors to do some of the service calls.

Dealers make most of their money on service/maintenance and you simply do not have as much of this required with the EVs. Using the old method for distribution just will not work, the markup they would need to add to the vehicle sales to make up the loss of the maintenance dollars would negatively impact the EV manufacturers.

Truthfully, it's not EV manufacturers' fault that EVs require virtually no maintenance. ICE vehicles are made to require frequent maintenance to keep them running. It's the maintenance that keeps the dealerships in business.