Peter Luu


This article advocates for federal legislation to implement a nationwide EV licensing system that would allow both EV manufacturers and dealers to sell and service their vehicles directly to consumers nationwide. This prospective legislation would preempt dealer franchise laws that prohibit or limit manufacturers from selling their vehicles directly to consumers. This article does not argue that direct distribution is the superior method of distribution; instead, this article argues that manufacturers should have the freedom to pursue direct distribution. As more EV companies enter the market, EV manufacturers need to have the flexibility to use a variety of distribution systems that best suit their business needs.

Part II of this article provides background information on the history of dealer franchise laws and the current status of dealer franchise laws. Part III addresses the problems associated with the current car buying process and why some manufacturers prefer to sell their cars directly to consumers. Part III also addresses counterarguments from the dealer lobby. Part IV introduces potential federal legislative reform to preempt state dealer franchise laws to allow EV manufacturers to directly sell their vehicles to consumers.