Illinois dealers appeal direct-to-consumer EV sales ruling


The Illinois Auto Dealers Association has filed an appeal in Chicago challenging a December court ruling allowing Rivian Automotive and Lucid Group to continue selling EVs directly in the state.

The appeal filed on Friday was expected.

In a Dec. 19, 2022 ruling, Deputy Judge David Atkins ruled that the Illinois Secretary of State was right to issue dealer licenses to EV startups, as he had previously done to Tesla. . The ruling opens the door for manufacturers to follow Tesla’s instructions on its sales model. The association’s executive director, Joe McMahon, previously said: car news This decision gives EV manufacturers special treatment.

McMahon said in a Jan. 5 statement that selling directly from the manufacturer would result in a monopoly with no price advantage.

The state dealer association representing 700 dealers, citing the Illinois Vehicle Law and the Illinois Automobile Franchise Law, states that public vehicle sales must be conducted through licensed independent franchise dealers. .

The dominant model of using franchised dealers for new car sales isn’t required under state law, Atkins said. McMahon has confirmed that an appeal has been filed under these laws.

“You can’t be a manufacturer or a dealer,” McMahon said. “It’s required by law, so I think it’s pretty clear.”


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