OLYMPIA — The landscape of electric vehicle sales in Washington may soon change significantly with new legislation poised to open doors for direct sales by luxury EV makers Rivian and Lucid, joining Tesla in bypassing traditional dealership routes.
Should this legislative proposal be enacted, Rivian plans to forgo a multimillion-dollar campaign aimed at persuading voters directly. Senate Bill 6354, which made swift progress since its introduction on February 19, has already been approved by the Senate Transportation Committee.
This legislative effort emerges from behind-the-scenes discussions between the electric vehicle manufacturers and the Washington State Auto Dealers Association, a long-standing opponent of direct sales. An increase in dealer fees has also been incorporated, with part of the additional revenue earmarked for rebates on used electric vehicle purchases by low-income families.
“I think on balance it’s a good compromise,” remarked Sen. Marko Liias, D-Edmonds, during a public hearing held by the transportation committee he chairs.
The compromise stipulates that only U.S.-based companies producing exclusively battery electric vehicles, with at least 300 registered in Washington by January 1, and a service facility in the state, can sell directly. They must also never have entered a franchise agreement with a motor vehicle dealer, effectively excluding Chinese EV makers if they enter the U.S. market.
Consequently, the criteria are tailored to accommodate only Rivian and Lucid. Executives from both companies have expressed that the terms represent a balanced approach to competing interests.
“The legislation honors the role of franchise dealerships while expanding access to electric vehicles for Washingtonians,” said Abigail Ramsden of Rivian Automotive.
Lucid’s Daniel Witt praised the bill as proof of successful collaboration between EV manufacturers and dealers, benefiting both Washington businesses and consumers.
Vicki Giles Fabre from the Washington State Dealers Association called the bill the “result of joint good faith deliberations,” noting that it levels the playing field by requiring qualifying manufacturers to obtain dealer licenses.
“This is that booger you’ve been trying to shake off your finger for a number of years,” she humorously added, referring to the longstanding issue.
Potential Impacts on EV Sales
Washington’s current law compels consumers to purchase electric vehicles through dealerships, with Tesla as the sole exception since 2014. Rivian and Lucid, despite having showrooms, cannot currently sell directly to consumers in the state.
A previous attempt to broaden direct sales access stalled last year in the House. This session, the Senate bill could bypass the House Consumer Protection and Business Committee and proceed directly to the Transportation Committee.
Rivian has demonstrated its commitment to achieving the same direct sales rights as Tesla, having pledged $20 million to a political committee, signaling its readiness to pursue a ballot measure if necessary.
“Our group is watching the Legislative process closely,” a coalition spokesman noted, emphasizing their readiness to consider a 2026 ballot measure if the legislation does not pass.
Some hearing attendees have reported rumors of Rivian’s willingness to spend as much as $50 million on a ballot initiative if required.
Dealers view the limited scope of the legislation as a preferable alternative to a ballot initiative, which could potentially open the market to all EV manufacturers, including those from China.
Automakers not part of the negotiations have expressed their disapproval, advocating for uniform regulations across all manufacturers. Curt Augustine from the Alliance for Automotive Innovation voiced concerns over the special treatment that could eventually extend beyond Tesla, Rivian, and Lucid.
“Here we are,” Augustine stated, predicting that this exemption trend will not stop with the current players.
Rep. Amy Walen, a dealership owner, highlighted the bill’s lack of consumer protections and the need for more physical presence requirements for EV firms.
“We shouldn’t pick winners and losers and we’re doing it again,” she commented, critiquing the bill as it stands.
Original Story at www.yakimaherald.com