Washington ready to allow Rivian and Lucid to sell EVs directly to consumers – GeekWire
As the threat of a ballot measure looms, dozens of auto dealers in Washington have come out in support of EV makers Rivian and Lucid Motors in their pursuit of direct-to-consumer sales.
Electric car manufacturers have fought for years to change a state law that only allows Tesla to sell cars directly, operate showrooms and offer test drives to potential customers in Washington. The law exists to prevent manufacturers from competing with authorized dealers.
In December, Rivian began taking steps to put the issue before voters this fall — a move that may exclude retailers from having a say in how the new rules are written.
On Friday afternoon, the Senate Transportation Committee will consider Senate Bill 6354, which provides a small exemption that applies to Rivian and Lucid, but excludes small EV makers and any new market entrants.
Many local retailer owners testified Tuesday that they agreed with the newly introduced measure — but also offered caveats and concerns.
“I believe that SB 6354 provides appropriate compromise and provides legal status for non-franchise EV manufacturers while maintaining the lines of protection to prevent abuse by our franchise manufacturers,” said Greg Rairdon, whose family owns 13 franchise businesses in Western Washington.
He warned that continuing to open direct sales to car manufacturers would give manufacturers an unbeatable competitive advantage and force his and other businesses like it to close shop.
Oregon, California, Idaho, Arizona, Nevada and many other Western states allow all EV manufacturers to offer direct sales. Because Rivian and Lucid do not offer their vehicles through traditional dealers, consumers have had to buy online and have them delivered, or go out of the country to buy.
Abigail Ramsden, Rivian’s western regional policy manager, gave an enthusiastic endorsement of the bill.
The law ensures that “we can serve customers in a seamless way,” he said. “Rivian welcomes the opportunity to operate within a clear regulatory framework.”
Over the past two years, EV car companies and environmental groups have pushed hard for legislation to open up direct sales. After that failed, Rivian launched a campaign called the Washington Coalition for Consumer Choice and Innovation to put the issue to voters on the fall ballot.
Rivian pledged about $4.7 million to the effort, and has spent $270,000, according to state records. The agency has not yet included proposed language for the measure. It will need to collect and deliver at least 308,911 voter signatures by early July to be placed on the November ballot.
If SB 6354 passes, those actions will not be required. But not all car dealers and manufacturers are reversing the move.
“If the Legislature really believes that the franchise model provides benefits to communities, then why would the state ever consider any idea like this that would cause the erosion of those benefits by exempting other companies,” said Curt Augustine, executive director of state affairs for the Alliance for Automotive Innovation, in testimony this week.
Augustine also expressed his displeasure that this bill appeared to him before it was announced and without the opportunity to enter into discussions. Craig Orlan, director of government affairs for the American Honda Motor Company, similarly disagreed.
“I am disappointed to see many retailers supporting this law, which shows the slow erosion of the franchise system that has been shown to benefit manufacturers, retailers and consumers,” said Orlan. “In addition to those benefits, this model has also proven to be very successful in selling and servicing electric vehicles.”
Besides allowing the two EV makers to join Tesla in selling their vehicles directly to consumers, SB 6354 would:
- Raise the auto dealer document service fee from $200 to $250 until Dec. 31, 2036.
- Of the $50 increase, 25% will be allocated to the Electric Vehicle Account for instant rebates offered to low-income families and 75% will be placed in the Multimodal Transportation Account, which helps finance public transit infrastructure, bicycles and pedestrians and other mobility.
SB 6354 was bypassed by legislative cuts that apply to most bills, but because it includes a payment related to state funds it is considered essential to the budget and is exempt from many restrictions.
The legislative session is scheduled to end on March 12.
