The debate playing out in statehouses across the U.S. about whether automakers should be able to bypass dealerships and sell their vehicles directly to buyers is centered on electric vehicle startups.
New market entrants including Rivian and Lucid Motors have lobbied lawmakers in numerous states for exemptions from laws requiring auto manufacturers to sell vehicles through franchised dealerships.
For some dealers, though, concerns about direct-to-consumer sales go beyond a handful of fledgling EV manufacturers that want to follow Tesla's lead. Some retailers and trade associations that advocate for dealerships on policy issues say expanding direct sales creates a "slippery slope" that could challenge the existing franchise system, potentially also giving legacy automakers an opening to sell their future EVs straight to buyers.