SPRINGFIELD, Ill. (WTVO) — Illinois auto dealers are appealing a court ruling that allows electric vehicle automakers, like Tesla, Lucid, and Normal-based Rivian from selling their vehicles directly to customers.
Last month, a Cook County judge dismissed a lawsuit brought by the Illinois Automobile Dealers Association against startup electric vehicle (EV) manufacturers for allegedly violating Illinois’ vehicle franchise requirements.
“The legislature had extensive opportunities to exclude manufacturers from dealing vehicles: in the definitions of those terms, in the requirements to obtain a dealer license, or elsewhere in the statute. They did not do so, and the court declines to nevertheless read such an exclusion into the law via a tortured application of inapplicable requirements,” wrote Judge David Atkins.
“The automobile industry may have largely adopted the ‘Established Franchise System’ over many decades, and Illinois law may have even been updated to reflect and better regulate that reality,” he continued.
In 2020, the Illinois Attorney General issued an “informal opinion” stating that the motor vehicle law does not require new manufacturers to establish franchise dealership locations to sell their vehicles.
Legacy automaker Ford announced in late 2022 that it would be selling electric vehicles directly to customers, with only demonstration models available at local dealerships.