Sun Nov 24 22:55:33 UTC 2024: ## Rivian CEO Blasts US Dealer Laws as Obstacle to Service Expansion
**DETROIT** – Rivian CEO RJ Scaringe has criticized the US automotive landscape, blaming state-level regulations for hindering the electric vehicle (EV) maker’s service network expansion. Despite a recent partnership with Volkswagen, Rivian will not be utilizing VW’s sales network, citing prohibitive state laws designed to protect established dealerships.
Scaringe described the situation as “horrific,” claiming many states have laws, influenced by powerful dealer lobbies, that effectively block direct-to-consumer sales and service models. These laws, he alleges, amount to corruption, prioritizing dealer profits over consumer choice and competition. He cited examples in Texas and Washington where Rivian, like Tesla, is restricted in its sales operations.
While acknowledging the need for robust service infrastructure, Scaringe highlighted the challenges in building this out due to these regulations. He stated that the current state-by-state approach makes expansion incredibly difficult. While mobile service currently handles over half of Rivian’s service visits, the company needs to significantly expand its physical service centers. While the company’s strategy in Europe remains flexible regarding service partnerships, the US regulatory environment makes collaboration with VW’s service network unlikely. Rivian plans to develop its service infrastructure independently in the US, despite the difficulties.
First Piper 