Dealerships Are 'Terrified' Direct Sales Might Be The Future

"Dealerships are 'terrified' of direct-to-consumer sales opening to any manufacturer, as 28 states still restrict or outright ban direct sales, impacting traditional car buying."

"The shift to direct-to-consumer sales isn't new; Tesla initiated this change years ago, navigating state-level regulatory hurdles to sell directly to consumers."

"Rivian's recent legal win in Washington marks a new phase in the battle for direct sales, while Scout faces numerous lawsuits despite its backing from Volkswagen Group."

"A California ruling deemed Scout's direct-to-consumer sales as violating laws that prevent manufacturers from competing with franchisees, highlighting industry fears."

Direct-to-consumer sales are challenging the traditional dealership model in the U.S., with 28 states imposing restrictions. New electric vehicle companies are leveraging this gap, potentially paving the way for foreign manufacturers. Tesla initiated this shift, overcoming regulatory challenges to sell directly. Rivian recently achieved a legal victory, while Scout faces lawsuits despite backing from Volkswagen Group. A California ruling against Scout highlights ongoing tensions, as the industry fears the implications of direct sales on franchise dealerships.

Read at insideevs.com