Tensions over the way ahead for the franchise system have been building for years, partially prompted by the rise of Tesla and its direct-to-consumer gross sales mannequin that has been emulated by different startup electric automobile producers, corresponding to Rivian. Some states, corresponding to Virginia, are proposing language that may prevent conventional automakers from negotiating the sale or lease of a brand new car immediately with consumers or declaring dealers to be supply brokers. Other states want to spell out sellers’ position in participating in future subscription income that automakers could search to activate with over-the-air software updates.
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