Rivian and Lucid Break Through Washington State’s Dealership Wall

Washington state car shoppers will soon be able to walk into a Rivian or Lucid Motors showroom, take a test drive, and drive home in a new electric vehicle. State lawmakers this week passed Senate Bill 6354, giving the two automakers the same direct-sales rights Tesla has enjoyed in Washington since 2014. The bill passed with overwhelming support in both chambers, and proponents expect Gov. Bob Ferguson to sign it. The change takes effect in three months. GeekWire reported the news on March 12, 2026.

The path was not easy. Rivian and Lucid have pushed for direct sales rights before, only to be blocked by dealership lobbying. This time, Rivian raised the stakes by launching a ballot initiative campaign and pledging more than $20 million to put the question before voters in November. That pressure brought dealers to the negotiating table through the legislative process instead, and the final bill reflects their influence. The exemption is narrowly drawn, limited only to Rivian and Lucid, and blocks smaller or emerging automakers from the same route. Dealers ultimately supported the bill, with one franchise owner calling it a fair compromise.

Not everyone agreed. Honda, Ford, General Motors, and a national automaker trade association argued against the legislation.

The bill also raises vehicle title fees from $15 to $40 through 2036, directing the added revenue toward EV purchases for low-income residents, transit, and pedestrian initiatives. Manufacturers that sell vehicles directly without approval face a $10,000 penalty per transaction.

Washington has committed to requiring all new vehicle sales to be zero-emission by 2035, a target now under pressure from the administration, which has cut EV tax credits and moved to block California’s stricter emissions standards. Advocates say expanding direct sales is one piece of a broader effort to keep the state on track.

Last week, Rivian released news about its exciting new R2. The mass-market crossover launches in the second quarter with the dual-motor, all-wheel-drive R2 Performance priced at $57,990. In keeping with other recent EV launches, Rivian plans to introduce lower-priced variants over time.

Controversial Direct Sales Spark Lawsuits by Dealerships Against Scout Motors and VW

On March 4, 2026, Car Dealership Guy released news about a group of Volkswagen dealers which has filed a class-action lawsuit against Scout Motors, Scout Motors Sales LLC, Volkswagen Group of America, and Volkswagen AG, targeting the automaker’s plan to sell its new electric vehicles directly to consumers rather than through the established dealer network.

The suit was filed March 3 in the U.S. District Court for the Eastern District of Virginia by two lead plaintiffs: Sunrise Imports, which operates as Volkswagen of West Islip in New York, and Curran Volkswagen in Connecticut. Because it is structured as a class action, the filing automatically covers every Volkswagen dealer in the country without requiring individual dealers to take any action.

The complaint alleges breach of contract, conspiracy to injure a business relationship, and interference with a contract. At its core, the dealers argue that Volkswagen has a legal and contractual obligation to sell vehicles through its authorized dealer network, and that routing Scout vehicles around that network violates those agreements. The filing also notes that Scout has already collected roughly $15 million in reservation fees from approximately 150,000 customers, all bypassing dealers entirely.

Plaintiffs are seeking a jury trial, monetary damages, legal fees, and an injunction to stop Scout from continuing direct sales. One of the attorneys on the case estimated damages could reach into the billions when factoring in lost vehicle sales, financing, service, repairs, and cross-selling opportunities.

The class action structure is significant, according to attorney Leonard Bellavia, because it allows dealers to act collectively under one legal umbrella at no upfront cost. Attorney fees would be recovered from the defendants if the plaintiffs prevail. Hagens Berman Sobol Shapiro, the firm that secured a nearly $15 billion consumer settlement against Volkswagen in the diesel emissions scandal, is also representing the plaintiffs.

This is not the only legal challenge Scout faces. Similar suits have been filed in Florida, backed by roughly 30 dealers, and in California by the state dealer association. Scout, which Volkswagen relaunched as an independent company in late 2024 to produce the Terra electric pickup and Traveler electric SUV, declined to comment on active litigation.