'We think the law is pretty clear: You can’t be a manufacturer and a dealer,' says an official with the Illinois Automobile Dealers Association.
An R1T truck travels outside the Rivian electric vehicle plant in Normal, Illinois, on April 11, 2022.
Henry Haupt, a spokesman for the secretary of state’s office, which licenses auto dealers in Illinois, declined to comment on the appeal.In December, a Cook County judge dismissed a 2021 lawsuit brought by the dealers against the startup EV manufacturers for allegedly violating Illinois vehicle franchise requirements. The court ruled the state was correct in issuing dealer licenses to Rivian and Lucid, as it had previously done with Tesla.
Tesla, the leading EV manufacturer, pioneered the direct-to-consumer sales model after the introduction of its Model S in 2012. McMahon claims Tesla was licensed to open dealerships in Illinois in 2017 as part of a one-time agreement with the secretary of state to avoid litigation. Rivian, the startup EV truck manufacturer that launched production at its downstate Normal plant in September 2021, has struggled to meet growing demand. The California-based company produced 24,337 vehicles last year, missing a downwardly revised production target of 25,000.The converted Mitsubishi plant has 7,000 employees and an annual production capacity of 150,000 vehicles, but has been hampered by supply chain issues.
In addition to the lawsuit against Rivian and Lucid, the association has filed a protest with the secretary of state’s office against Ford, alleging the automaker is withholding allocation of EVs to dealers that don’t “voluntarily” participate in a potentially costly certification program, McMahon said.
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