zzdcar
Home
/
Reviews
/
Culture
/
Colorado Passed A Dealership Bill Designed Entirely For Tesla And Rivian
Colorado Passed A Dealership Bill Designed Entirely For Tesla And Rivian-June 2024
2024-02-19 EST 22:12:45

Image for article titled Colorado Passed A Dealership Bill Designed Entirely For Tesla And Rivian

The Colorado Senate Friday approved a bill 22 to 12 that will allow electric vehicle manufacturers, like Tesla and electric truck manufacturer , to sell their products directly to consumers, bypassing the traditional dealership system. There is a caveat however, the bill only allows company that sell solely EVs and has no prior traditional system of dealerships already in place to do so.

Rivian lobbied in favor of this law in the weeks leading up to the vote, according to . The bill was delayed twice, but came up for a final vote Friday after the addition of an amendment keeping traditional, non-EV manufacturers from the direct marketplace. But the amendment was not enough for Tim Jackson, spokesperson for the Colorado Automobile Dealers Association.

That startup, Rivian, is lobbying to open up Colorado’s dealer franchise law as it prepares to start production of electric pickups and SUVs this year. Lawmakers in that state could vote as soon as this week on a controversial bill that would allow any automaker — including those with existing franchised dealerships — to sell their EVs directly to customers.

An amendment added to the bill Friday, Feb. 21, designed to prevent traditional automakers from opening up next door to their franchised dealers did little to quell retailers’ concerns about what they say are the potential risks should the bill become law.

“We’re not enamored with the amendment,” said Tim Jackson, president of the Colorado Automobile Dealers Association. “You can’t put lipstick on a pig. It’s still a pig.”

Still, it is something. The bill will allow the Teslas and Rivians of the world to operate in a sales model that is better suited to their approach of treating their cars more like high-end electronics but prevent traditional automakers from doing the same. Rivian expects to already be able to sell directly in Arizona, and a recent Michigan settlement with Tesla over a 2014 law barring the practice has paved the way for Rivian to dive into direct-to-consumer sales in its home state. Naturally, General Motors was in favor of Michigan’s 2014 law saying was signed:

General Motors applauds Governor Snyder’s signing of HB 5606. This will provide stability and support for our dealers, who are focused on delivering a world-class sales and service experience for our customers. Further, it will ensure we compete under the same rules in the marketplace as other automobile manufacturers.

It’s not every day in America that we’re told there’s a wrong way to engage in capitalism. This kind of regulation-induced stagnation of business practices do the exact opposite of fostering a positive consumer experience. There’s a not-unearned stereotype that car dealers are skevy characters who have made buying a car a complex, daunting and financially perilous process. It’s so tough, we have a to helping people navigate the murky waters.

While Teslas are certainly more common now then when Anti-Tesla legislation first started hitting States’ books, they are still kind of considered speciality vehicles today. Tesla sold 367,500 vehicles in 2019, for instance, while just GM totaled 2,887,046 cars. Dealerships just might not make sense for an automaker that is mostly made-to-order or a low volume manufacturer. We’d never really know unless companies are allowed to experiment. The rush to legislate back then seemed like an insecurity on auto dealers’ part. It’s almost like, they knew the business model is a pain in consumers’ ass and making cars needlessly expensive and they wanted to prevent any alternative from surfacing. Weird!

Fast forward six short years, and the big automakers have gone from dismissing new comers like Tesla and Rivian to fearing them to attempting to emulate them. And while there are still 19 states where direct sales are limited or outright banned, but it seems like the outcome of this long and expensive fight will eventually be on the side of innovation.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Culture
Here's How You Could Replace Your Car's Fuel Pump With A Human Heart
Here's How You Could Replace Your Car's Fuel Pump With A Human Heart
We at Jalopnik are sharing the love this heart-filled holiday by reposting this little writeup, published Valentine’s Day in 2017. Enjoy. Ah, Valentine’s Day! The day we expect our significant others, lovers, and expensive sex mannequins to gamely pretend to forget about our many, complicated flaws and remember why they...
Jun 18, 2026
VW Things Had A Real Moment In Super Bowl Ads
VW Things Had A Real Moment In Super Bowl Ads
I don’t usually like to write too much about Super Bowl commercials, because, you know, screw ‘em. I’m not here to advertise for any carmaker or crypto whatever or medicated shoe insoles or whatever they’re talking about. However, I am honor-bound to report to you when mainstream culture intersects...
Jun 18, 2026
Blip: Happy Luv Day
Blip: Happy Luv Day
Yes, happy anniversary, everyone. To commemorate this day, I’d like to remind everyone that Chevrolet once sold a re-badged Isuzu pickup truck and I wrote about this truck and the peculiar name that would likely very much not fly on a modern truck a few years back, and reached...
Jun 18, 2026
Picking A Super Bowl Winner Solely By The Quarterbacks' Cars
Picking A Super Bowl Winner Solely By The Quarterbacks' Cars
Super Bowl LVI will kickoff at SoFi Stadium in Los Angeles in less than two hours. Los Angeles Rams will take on the Cincinnati Bengals to decide the championship of the National Football League. The Rams have the unique opportunity of claiming the Vince Lombardi Trophy in their home...
Jun 18, 2026
Oil Companies Are Doing Too Well, Again
Oil Companies Are Doing Too Well, Again
I would not expect rising gas prices to go anywhere, but it’s interesting to see how one hand of the economy (the oil industry) is attacking the other (consumerism) and I don’t know how it’ll eventually shake out. All that and more in for February 14, 2022. I love...
Jun 18, 2026
Highway Of Agony: How Traffic Safety Films Introduced Millions Of Kids To Scenes Of Real Death
Highway Of Agony: How Traffic Safety Films Introduced Millions Of Kids To Scenes Of Real Death
“There’s trouble ahead. Trouble that may or may not be a signal 30. What will we find? A minor mishap? Or will we look upon the stark face of death?” a deadpan narrator asks his audience. It’s a question you are forced to grapple with every time the scene changes...
Jun 18, 2026
Copyright 2023-2026 - www.zzdcar.com All Rights Reserved