RJ Scaringe highlighted that the convoluted state-by-state dealer franchise laws act as a barrier, making it difficult for companies like Rivian and Tesla to interact with consumers directly.
He elaborated that the dealer franchise laws have essentially been influenced by dealer lobbyists, who have 'paid for laws' that restrict direct competition from car manufacturers.
In states like Texas and Washington, the laws limit Rivian and Tesla's ability to engage directly with consumers, forcing them to sell online and limiting interactions.
Scaringe pointed out that while Rivian won't use Volkswagen's sales network, the potential collaboration with VW's service network is limited due to stringent dealer regulations in the U.S.
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