Rivian sues Ohio DMV over partial ban on direct car sales

Rivian filed a lawsuit against the Ministry of Cars in Ohio for the partial ban of the state on direct cars sales, freedom Reports. The company says the ban “reduces competition, reduces consumer choice and increases consumer costs and inconvenience.” Reminy believes that Ohio’s law is not particularly fair because it contains carving for the company’s competitor Tesla.

Ohio states currently not to provide DMV for a license for sale in “the manufacturer, the parent company, affiliated or entity of a manufacturer, submitting an application for a license to sell or rent new cars or is used in retail.” The law maintains cars sales in the hands of auto auto agents independently – with the exception of Tesla. An exception to Tasla was created in 2014, Send Columbus He writes, after the EV maker reached an agreement with the Agency Association in Ohio. Cars are now sold in the state through traditional car agents, and three agents owned and managed by Tesla.

“Reminy believes that consumers should be able to choose the vehicles they buy,” Mike Callen, the chief administrative official in Rivian, participated in a statement. “The choice of the consumer is a principle in the first place for the American economy. The old ban in Ohio against the direct sale of vehicles is unconstitutional and irrational and is affected by Ohio by reducing competition, choice, increased costs and inconvenience.”

The company’s suit is a good job in setting the irrational situation that Ohio created by banning it. Rivian is allowed to make cars repairs in the state and hand over cars that have been purchased outside the country to Ohio. “In a way, the thing that rurallas cannot do is complete the sale of rural vehicles in Ohio,” the company wrote. “This imposes an extraordinary burden on Ohio and Rivien consumers without a legitimate reason.”

like freedom Notes, historically, there are direct cars sales to prevent large car companies that are created from a monopoly of selling their cars. The transition directly to the consumer is one of the ways that EV makers themselves from old brands, which is not possible for companies like Tesla and Rivian to do in the prohibited states. Rivian can try to conclude a deal like Tesla, but filing a federal suit indicates that the company can aim to win more and more constantly. Rivian achieved similar victories in the past. Illinois state filed a lawsuit against Rivian and Warid Motors from selling directly to consumers in 2022, but it was eventually lost.