Illinois Dealers Lose Direct-Sales Fight
Lawsuit that sought to bar such sales in the state by Rivian, Lucid dismissed.
Rivian assembles models in central Illinois.
IMAGE: Rivian
Illinois auto dealers lost a legal fight to stop Rivian and Lucid Motors from selling cars directly to consumers in the state.
A circuit court judge dismissed the lawsuit against the brands and the state that was brought by the Illinois Automobile Dealers Association, other trade groups and individual dealers.
Associate Judge David Atkins ruled that the Illinois secretary of state acted within the law in granting dealer licenses to the two electric vehicle startups in 2021.
When filing the suit, IADA President Pete Sander said it was aimed at protecting “consumers as well as the hundreds of franchised dealers across the state who contribute to the local economy.” The association represents more than 700 car dealers across Illinois.
The lawsuit argued that only franchisees have the right under state law to sell new vehicles.
Dealers have fretted about the impact of direct sales along the Tesla business model because it cuts out their middle-man role in the car-buying process. Some states have barred direct vehicle sales, but Illinois is among those that allow them.
LEARN MORE: Customer Satisfaction Higher at Local Dealerships Than Factory-Direct Models
More Dealer Ops
Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →