Auto dealer trade groups sue state, Rivian

CHICAGO - The Chicago Automobile Trade Association and the Illinois Automobile Dealers Association said Friday they have filed suit in Cook County against the state over "unregulated sales of vehicles by Rivian Automotive Inc., as well as potential future sales by Lucid U.S.A. Inc."

Illinois law requires new vehicle sales be conducted by licensed franchised dealers, not directly by manufacturers, the two auto trade groups said in a news release. In addition to the Illinois Secretary of State, the two automakers were named in the suit.

"We welcome new manufacturers to Illinois, especially those who are building innovative vehicles," said David Sloan, President of the CATA. "Our franchised members already sell dozens of electric and hybrid vehicles. We ask that manufacturers sell them in Illinois according to state law. We're not demanding they cease operations in the state, just that they franchise a dealer."

Over the past several years, the two dealers associations have sought enforcement from the Secretary of State's office. The state agency initially granted Tesla a license to sell electric vehicles from a small number of locations in Illinois. However, in recent months, the Illinois Attorney General's office has issued an informal opinion that directly conflicts with the state auto dealer laws, according to the IADA and the CATA.

As a result, the auto dealers associations are now seeking a court order requiring the Secretary of State to enforce existing state laws regulating the sale of new vehicles, the two groups said.