Rivian is suing Ohio's Bureau of Motor Vehicles for prohibiting direct vehicle sales to customers. Tesla can sell directly, but Rivian argues this constitutes favoritism. The lawsuit criticizes Ohio's policy as prioritizing existing auto dealers' profits over consumer interests. Rivian points to legislation from 2014 that bars manufacturers from selling vehicles directly, while Tesla benefits from a special provision allowing direct sales. Rivian's aim through litigation is to secure similar rights as Tesla and challenge the existing limitations on its sales model in Ohio.
Rivian is suing the State of Ohio's Bureau of Motor Vehicles because it will not allow the automaker to sell vehicles directly to customers. Direct sales are enabled for Tesla in the state, however, and Rivian, a rival of the Musk-headed company, says the EV leader is getting favoritism because it is allowed to use direct sales.
'Ohio's prohibition is pure economic protectionism for the benefit of Ohio's existing auto dealers, putting their profits ahead of consumers.' This reflects Rivian's position in its lawsuit against Ohio.
Direct sales are used to sell vehicles at a fixed price to consumers without using the traditional dealership model. Tesla does not allow dealerships to be bought like franchises.
In 2014, the Ohio Legislature enacted a bill providing that the Ohio Registrar of Motor Vehicles shall deny a motor vehicle dealers' license to anyone who is 'a manufacturer' applying for a license, simultaneously creating a special provision for Tesla.
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