The introduction of electric vehicles starts to worry traditional car dealerships, and the pressure resulting in a bitter fight with electric carmakers. The electric vehicle manufacturers are currently trying to convince the legislature that the old ways to sell cars are unnecessary. The outcome of these requests will depict how Americans will shop for cars. However, the question running in people’s minds is whether the electric carmakers should get rid of the traditional dealerships and sell the vehicles to the customers directly? Without the legislature’s intervention, some carmakers, including Lucid Motors and Rivian claim, ought to become disadvantaged in some states that don’t allow direct sales such as Texas, New York, and Georgia.
Dealerships have expressed their worries that allowing direct sales means threatening their existence in the car industry. Previously, the NADA (National Automobile Dealers Association) president, Mike Stanton, added fuel to the issue by writing “The Big Lie About EV sales.” He claims that it is a lie that dealerships don’t want to sell electric cars, but it is a way for carmakers to get rid of the supply chains that the customers are adapted to and rely on to buy cars.
Stanton didn’t name any manufacturer, but Rivian is one of the carmakers pushing forward this discussion. Currently, the manufacturer is launching its first electric car into the market. Other carmakers dealing with dealership issues include Lucid Motors and Tesla. And there seems to be so much trouble in at least six states such as Connecticut, Nevada, New York, Nebraska, Washington, and Georgia.
In the debate, Rivian carmaker is questioning dealership’s ability to sell electric vehicles and whether they have what it takes since their system is disadvantageous to the carmakers. James Chen, vice policymakers in Rivian, stated that giving NADA the power to create a monopoly on how to sell the cars is unreasonable. This debate dates back to when Tesla launched their first electric vehicles and convinced over twenty states to create an exemption in their car sales. Since Tesla is the pioneer of electric cars, the company could convince on going against the norms in car sales. However, many cars want to follow Tesla’s steps, and there is tension about what will happen in the future.
The battle for direct sales is here, and manufacturers and dealerships feature different opinions on the matter, with each feeling that the other is taking advantage. Also, to make the matter worse, dealerships have a reputation for their disinterest in electric cars explaining why Tesla won the previous direct sales deals. However, things are different, and the transition to electric cars is here, but manufacturers doubt the dealerships’ sincerity on the matter. The future of selling cars in America is uncertain, and time will unveil the mystery.https://nmtribune.com/