Illinois Dealers Lose Direct-Sales Fight
Lawsuit that sought to bar such sales in the state by Rivian, Lucid dismissed.

Rivian assembles models in central Illinois.
IMAGE: Rivian
Illinois auto dealers lost a legal fight to stop Rivian and Lucid Motors from selling cars directly to consumers in the state.
A circuit court judge dismissed the lawsuit against the brands and the state that was brought by the Illinois Automobile Dealers Association, other trade groups and individual dealers.
Associate Judge David Atkins ruled that the Illinois secretary of state acted within the law in granting dealer licenses to the two electric vehicle startups in 2021.
When filing the suit, IADA President Pete Sander said it was aimed at protecting “consumers as well as the hundreds of franchised dealers across the state who contribute to the local economy.” The association represents more than 700 car dealers across Illinois.
The lawsuit argued that only franchisees have the right under state law to sell new vehicles.
Dealers have fretted about the impact of direct sales along the Tesla business model because it cuts out their middle-man role in the car-buying process. Some states have barred direct vehicle sales, but Illinois is among those that allow them.
LEARN MORE: Customer Satisfaction Higher at Local Dealerships Than Factory-Direct Models
Originally posted on Auto Dealer Today
More Industry

CPO Sales Could Take Off in the Right Conditions
A recent Cox Automotive consumer survey reveals the size of an undertapped market for the vehicle segment given affordability pressures.
Read More →
Global Consumer Trends Diverge
Price remains a top consideration for U.S. car buyers, and they are the most brand-loyal consumers to established automakers, according to a new survey.
Read More →
Badger State Dealership Gets New Owner
The longtime southern Wisconsin store moved from one area auto group to another, keeping the business in Dairyland.
Read More →
The Cycle of Negative Equity
Third-quarter data shows consumers still rolling over debt and stretching loan terms, raising their risk of remaining underwater.
Read More →
Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →