Washington state approves Rivian direct sales to consumers

[godfodder0901]

What about Scout? Will they be able to sell too? I read VW dealers are currently suing them.

No. Not based on the current wording and requirement for having sold x number of vehicles by Jan 2026 and they can't make EREVs.

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[Yossarian]

The history of direct auto sales in WA seems to be quite similar to ours here in PA. The Board of Vehicles Act essentially prevents manufacturers from selling vehicles directly to consumers or even owing retail locations. The Act remains on the books in the Commonwealth, however Tesla lobbied for an exemption, and in 2014, received permission to open five direct sales (and service) locations. Auto dealers in PA were upset about the Tesla exemption, something they rightly saw as a threat to their livelihood, and pressed the Legislature to adopt a resolution barring any future exemptions.

The resolution stood until 2025 when both Rivian and Lucid were also granted exemptions. Lucid opened a sales and service center in King of Prussia, PA, (near Philadelphia) in 2024. Rivian followed suit, opening a service and delivery center in Malvern (also in the Phila metro region) in 2025, and a "Rivian Space" in King of Prussia in 2026. I'm guessing that, in an effort to help placate the dealer lobby, both the Lucid and Rivian exemptions limited each to a single location. While Rivian technically has two locations, one is a showroom and the other a service (and delivery) center, so no overlapping functions.

It will be interesting to see how VW handles Scout sales in PA, assuming their EVs actually get to market. I assume that they would need an exemption for direct sales, but could utilize the existing VW dealer network if they so chose..

 

[DuoRivian]

The history of direct auto sales in WA seems to be quite similar to ours here in PA. The Board of Vehicles Act essentially prevents manufacturers from selling vehicles directly to consumers or even owing retail locations. The Act remains on the books in the Commonwealth, however Tesla lobbied for an exemption, and in 2014, received permission to open five direct sales (and service) locations. Auto dealers in PA were upset about the Tesla exemption, something they rightly saw as a threat to their livelihood, and pressed the Legislature to adopt a resolution barring any future exemptions.

The resolution stood until 2025 when both Rivian and Lucid were also granted exemptions. Lucid opened a sales and service center in King of Prussia, PA, (near Philadelphia) in 2024. Rivian followed suit, opening a service and delivery center in Malvern (also in the Phila metro region) in 2025, and a "Rivian Space" in King of Prussia in 2026. I'm guessing that, in an effort to help placate the dealer lobby, both the Lucid and Rivian exemptions limited each to a single location. While Rivian technically has two locations, one is a showroom and the other a service (and delivery) center, so no overlapping functions.

It will be interesting to see how VW handles Scout sales in PA, assuming their EVs actually get to market. I assume that they would need an exemption for direct sales, but could utilize the existing VW dealer network if they so chose..

I had hoped Rivian could open in Pittsburgh and cover the western part of the state.

 

[Yossarian]

I had hoped Rivian could open in Pittsburgh and cover the western part of the state.

As I wrote, I'm guessing that the Rivian exemption was for a single location, which at least for the time being rules out a Pittsburgh site. That's unfortunate, but hopefully things will change. I was very surprised, albeit quite pleasant, when Rivian opened the Malvern SC. I had to go to Mahwah, NJ (near the NY State border) to pick up my R1T and to Roebling, NJ (just outside of Trenton and home to the steel rope factory that made the cables for the Brooklyn and Golden Gate bridges) for my first service appointment. New Jersey does not have the same restictive laws and though a much smaller sate than PA, has three Rivian locations.

 

[VandalSibs]

The history of direct auto sales in WA seems to be quite similar to ours here in PA. The Board of Vehicles Act essentially prevents manufacturers from selling vehicles directly to consumers or even owing retail locations. The Act remains on the books in the Commonwealth, however Tesla lobbied for an exemption, and in 2014, received permission to open five direct sales (and service) locations. Auto dealers in PA were upset about the Tesla exemption, something they rightly saw as a threat to their livelihood, and pressed the Legislature to adopt a resolution barring any future exemptions.

The resolution stood until 2025 when both Rivian and Lucid were also granted exemptions. Lucid opened a sales and service center in King of Prussia, PA, (near Philadelphia) in 2024. Rivian followed suit, opening a service and delivery center in Malvern (also in the Phila metro region) in 2025, and a "Rivian Space" in King of Prussia in 2026. I'm guessing that, in an effort to help placate the dealer lobby, both the Lucid and Rivian exemptions limited each to a single location. While Rivian technically has two locations, one is a showroom and the other a service (and delivery) center, so no overlapping functions.

It will be interesting to see how VW handles Scout sales in PA, assuming their EVs actually get to market. I assume that they would need an exemption for direct sales, but could utilize the existing VW dealer network if they so chose..

Yeah, the Tesla situation in Washington State is similar, but a little different. They didn't have to apply for an exemption, as they already were selling in state. Pre-2014, there was no law on the books restricting direct sales - no manufacturer was doing so. Once Tesla was up and running, the dealership association freaked out and got a law in that changed the rules, but Tesla was grandfathered in as they were already a 'dealership' essentially.

The new law for Washington State makes Rivian and Lucid retail locations into dealerships (again, without specifically naming them, but with requirements that pretty much exclude any other EV manufacturers), and they have to pay the same fees that any other dealership does. They don't just magically get to sell in-state with no other requirements.

Notably, the new law still isn't on the governor's list of bills up for action, but that list gets updated once a day, and only a day or so out apparently. Since the state legislative session ended, the governor has 20 days to sign bills into law, not counting Sundays. So it could be a while...

 

[VSG]

What about Scout? Will they be able to sell too? I read VW dealers are currently suing them.

No, Scout will not be allowed to sell direct to consumers. It's that sort of situation that concerns dealers the most - existing companies using direct sales to cut dealers out of the loop.

 

[savethemanual]

No, Scout will not be allowed to sell direct to consumers. It's that sort of situation that concerns dealers the most - existing companies using direct sales to cut dealers out of the loop.

Yeah, because buying a vehicle at the dealer sucks!!!

 

[CrazyOne]

The big automakers should grow a spine and pay for the ballot measure. Or make payments directly to those in charge, like the dealers do.

 

[VandalSibs]

The big automakers should grow a spine and pay for the ballot measure. Or make payments directly to those in charge, like the dealers do.

What ballot measure? The one Rivian was initially pushing for (which will no longer be necessary once this bill is signed), or something else?

 

[CrazyOne]

What ballot measure? The one Rivian was initially pushing for (which will no longer be necessary once this bill is signed), or something else?

I thought ballot measure would give any auto maker to sell directly. Even if that specific one didn't, they can support one that does.

 

[VandalSibs]

I think the ballot initiative was more of a ploy to get the dealership lobby to play nice with the legislation that was submitted (and has been since passed). I haven't yet found any real info on the initiative online, just financial records for the PAC that Rivian gave money to.

Again, this is a guess on my part.

 

[VandalSibs]

The bill is scheduled for action by the Governor on Tuesday - technically that doesn't mean he will sign it (could get vetoed), but he hasn't vetoed a bill yet from this legislative session, so I've got high hopes!

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