Rivian Files Lawsuit to Directly Sell Electric Vehicles in Ohio – Challenging State Dealer Regulations
In a strategic legal move, Rivian Automotive Inc. has filed a lawsuit in an Ohio federal court, aiming to overturn the state’s restrictions on the direct sale of electric vehicles (EVs) to consumers. This development marks another chapter in the ongoing dispute between emerging American automakers and the powerful auto dealership lobby.
On Monday, Rivian filed a complaint against the registrar of Ohio’s Bureau of Motor Vehicles (BMV), alleging that the state’s policy of prohibiting direct sales is detrimental to consumers by limiting competition, choice, and driving up costs. Currently, Rivian is authorized to sell EVs directly to consumers in 25 states and Washington D.C., but Ohio residents are compelled to purchase vehicles from out-of-state locations where direct sales are permitted, with the vehicles subsequently shipped to Rivian service centers within Ohio.
At the time of publication, the BMV had not issued a statement regarding the lawsuit.
In the complaint, Rivian’s legal team contends that the state’s policy is “irrational in the extreme,” as it restricts competition, decreases consumer choice, and increases costs without providing any countervailing benefits for consumers. The company is seeking permission to apply for a dealership license to enable direct sales within Ohio.
Rivian’s request does not represent a departure from existing legal precedents; Tesla has held a license for direct sales in Ohio since 2013. However, what appears to be hindering Rivian is a 2014 state law, which Rivian claims was the result of an intensive lobbying effort by the Ohio Automobile Dealers Association (OADA). This legislation, according to Rivian, effectively granted Tesla a carve-out and prevented future manufacturers from acquiring dealership licenses. The OADA could not be reached for comment at the time of publication.
Mike Callahan, Rivian’s Chief Administrative Officer, commented on the matter, stating, “Consumer choice is a cornerstone principle of America’s economy. Ohio’s archaic prohibition against the direct-sales of vehicles is unconstitutional, irrational, and harms Ohioans by reducing competition and choice and driving up costs and inconvenience.”
Rivian has previously prevailed in legal battles regarding direct sales. In 2021, Rivian and Lucid Motors were granted dealership licenses to sell EVs in Illinois. The state’s dealer association subsequently filed a lawsuit to prevent Rivian and Lucid from selling directly, but ultimately failed in their efforts.
Meanwhile, Lucid Motors has initiated its own legal challenge in Texas, aiming to overturn the state’s direct-sales ban. The court ruled against Lucid earlier this year, but the company has since filed an appeal, according to federal court records.
