Rivian Brings New R1T to CT in Support of Direct Sales
With the fate of SB 127 hanging in the balance in the waning days of the 2021 legislative session, a pre-production version of the Rivian R1T all-electric pickup truck made an appearance in CT. It could be found Thursday in Hartford, where legislators and the governor were given the opportunity to go for a drive and see the future of electro-mobility. The fate of the bill in the Senate is expected to be determined over the next few days. It would then still have to go before the House.
On Friday, a last-minute gathering came together, where some members of the EV Club CT, were also able to get a look. We hope to bring them back to CT once they have started production later this year.
Group photos by Paul Braren
Admiral Dennis Blair From The Electrification Coalition Speaks Out for Direct Sales of EVs
May 13, 2021
Electrification Coalition Support of SB 127 Comes from National Security Perspective
The Electrification Coalition supports SB 127. Its mission statement states: “Accelerate the adoption of plug-in electric vehicles to improve our national and economic security.” Several prominent retired military leaders, including Admiral Dennis Blair, are affiliated with the organization because of the national security benefits of reducing our country’s dependence on oil. Admiral Blair made the following remarks in testimony before Washington legislators on the subject of direct sales of electric vehicles:
“Our group has long seen electric vehicles, and specifically the domestic EV industry, as the most promising solution to break oil’s monopoly over the transportation system. And as the world shifts from gasoline to EVs, China’s dominance of the entire EV supply chain makes scaling up the U.S. market even more urgent.
“As has been made clear in state after state, direct sales is one of the most effective and powerful policy levers to enhance EV deployment. Some 80% of EVs sold in the country are through direct sales, and states that are open to direct sales see adoption rates of up to 5 times the rates of states that are closed—even in the absence of other direct incentives.”
– Admiral Dennis C. Blair, Former Director of National Intelligence and Commander In Chief, U.S. Pacific Command
SB 127 Fact vs Fiction
For those following the saga of SB 127, the bill that would enable EV-exclusive manufacturers to open stores in CT, this is a short Fact vs Fiction YouTube video that is worth watching: https://www.youtube.com/watch?v=Ht4avMauknQ
Then go to EVFreedomCT.com and sign the petition.
Myth – Consumers will lose protections.
Fact – Consumer protections are written into state laws other than the franchise laws. These laws apply to any licensed seller and would include direct sellers of EVs since they would have to obtain a license. These include the new car lemon, law, used car lemon law, Magnus and Moss Warranty Act, bonding requirements, and a number of others. The video has a clip of Senator Haskell giving a detailed rundown of these protections.
Myth – Dealers sell EVs
Fact – A few do, most not so much. While it is true that there are a lot of EVs for sale at dealerships, most do a poor job of selling them. In testimony, they exaggerate their effectiveness which can easily be disproved by the data from the DMV and CHEAPR.
68% of the growth in EV registrations in the state in 2020 came from Tesla. If I restrict this to battery electric vehicles, the number is 84%.
I review CHEAPR rebate data by dealership. There are a small number of dealers who do a good job. In my testimony at the public hearing, I noted that 61% of dealers awarded fewer than 10 rebates since the program’s inception through August of 2020. The link above goes to data updated through the end of 2020.
Our club was recruited by the Sierra Club to help with the fieldwork for the second EV Shopper Study, conducted in 2019. While the metric highlighted by the Sierra Club in the report was that 74% of dealers, nationally, did not have an EV present on their lot, the club members that I spoke to reported that the bigger issue was that most of the time when they inquired about an EV, the salesperson tried to switch-pitch them to ICE, whether or not EVs were present. In the appendix of the report, the Sierra Club lists “5-star” dealers based upon the experiences reported by the interviewers. There were zero of these in CT (among the dealerships included in the sample).
Myth – Tesla doesn’t play fair. They have a proprietary charging network and don’t let anyone else use it.
Fact – Tesla should get credit for having the vision to understand that access to charging is an important part of selling electric vehicles. But that said, Tesla has offered to open their network to other manufacturers, as long as these other manufacturers would invest. Any takers?
Myth – Direct sales would cause job loss at dealerships.
Fact – The data simply don’t support this. The Acadia Center did a pre-post study of dealership employment in states that permit direct sales and found no impact on dealership employment. Data from the dealers’ own national association (NADA) show dealership sales and employment gains in open states outpaced those in closed states like CT. Senator Haskell references several of these in the video.
This Bill is Pro EV and Pro CT
SB 127 permits direct sales from manufacturers that do not have a dealer network. It does not undercut the existing dealer relationships with their affiliated manufacturers. It provides consumers with the ability to buy the EV of their choice and to be able to do so within CT.
We believe in competition and innovation. A recent poll found 83% of CT residents support SB 127. Don’t let CT be a backwater!
EV Freedom Bill Unshackled
Transportation Committee Vote Moves Bill to Full Chamber
The Transportation Committee, by a vote of 26 to 10, moved SB 127 to the full chamber.
There were several legislators who voted in favor of the bill, but who specifically said they have not definitively made up their minds with respect to the upcoming vote on the floor of the chamber. We will publish some of the questions and objections when we update this post.
Transportation Committee Chair, Senator Haskell, deserves our thanks for his leadership in picking this up and moving it forward, after his predecessor on the committee had decided to set it aside. We also thank Rep. Steinberg who has been a consistent advocate for years in favor of this measure.
This is the final roll call.
What I inferred from the hearing today reinforces what I watched/read during the public testimony period. Legislators are hearing from dealers, of course, who oppose the legislation. They are also hearing from constituents and constituents are supporting the legislation. There is no negative sentiment among the public about this bill.
We don’t take anything for granted. When we have updates with respect to further negotiations around the bill or voting in one or both chambers, we will post them (among other things).
Tesla is keeping its “Engage” page live for ease of contacting your legislators.
Well-Attended Press Conference Shows Support For EV Direct Sales
Headline photo courtesy of Will Cross
Post by Barry Kresch
Grassroots Momentum for the EV Freedom Bill
The atmosphere was electric as about 100 EV enthusiasts came to Westport from all over the state for a press conference supporting The EV Freedom Bill, legislative bill number SB 127. Lame puns aside, I have been part of this EV Club for 9 years, and this issue feels like it has been around for most of them, but today felt different. The grassroots energy was palpable in a way that it hadn’t been in the past. Perhaps it is due to Tesla registrations having grown to almost 6,000 in the state. Or the excitement of new, really cool, EV companies entering the market also looking to sell direct. Or energized engagement on the political front.
This bill, which in earlier guises had come to be referred to as the “Tesla Bill,” would permit EV-exclusive manufacturers that do not have an existing franchise dealer network to open stores in CT. At today’s event, Tesla was joined by Rivian and Lucid. Others are expected to adopt this business model or, more to the point, this or some other new model not envisaged in the existing dealer franchise laws that were written almost 100 years ago.
The bill also requires that companies opening stores have a sustainable model for servicing vehicles that are sold here.
The Way Forward In A Changing World
Passing this bill would be a tangible step toward supporting innovation. The industry is changing. Fissures are showing in the traditional automobile business, despite their actions to forestall competition by keeping new EV companies out of the state. 17% of Cadillac dealers opted to drop the franchise rather than embrace GM’s making this its centerpiece EV brand. Volvo announced an aggressive timeline of moving to an all-electric lineup by 2030 and moving EV sales online in the short-term. We don’t know the fine print of how this changes the relationship between the dealers and the manufacturer. If sales are online, do the dealers ever take title to the vehicle? And if they don’t, are they still a dealer? We reached out to Volvo for elucidation but have not received a response. We are guardedly optimistic that these changes are signs of a more serious effort to sell EVs.
SB 127 was introduced by Sen. Will Haskell, who organized the press conference, and Rep. Jonathan Steinberg, both of whom represent local districts. There were a number of other state and local officials present. This was the speaker order lineup:
Senator Will Haskell (SB 127 co-sponsor)
Barry Kresch, President of the EV Club of CT
Rep. Jonathan Steinberg (SB 127 co-sponsor)
Jim Marpe – Westport First Selectman
Jeff Curry – Lucid Motors
Kaitlin Monaghan – Rivian
Lori Brown – League of Conservation Voters
Daniel McInerney – International Brotherhood of Electrical Workers
Senator Bob Duff – Majority Leader
Former Senator Art Linares
Paul Braren has posted video of all of the speakers on his blog.
Journalist David Pogue recorded remarks that were played to the group. A schedule conflict prevented him from appearing in person but you can hear what he had to say. (His remarks are just short of 4 minutes.)
The presentations took place at the Westport Train Station in front of a depot building with a solar array that powers the building and 4 adjacent EV charging stations. These were the first solar-powered public chargers in the state. They were installed in 2012, which is when I met the club founder, Leo Cirino, and became a member.
Model Y and Lucid Air – charging stations are to the right of the building by the white Chevy Volt
Long Way To Go
In his remarks, Sen. Haskell noted that the state had a long way to go to reach its goal of 500,000 EVs in the fleet by 2030. I’ve written a lot about that and noted that given where we are today, 13,800 EVs, it will be necessary to maintain a 49% compound annual growth rate to get there. This may sound high, and it is, but it is actually worse than it sounds because this figure is growth in net registrations. Each year, there are new vehicles added to the file, but there is also turnover from vehicles leaving the file. In 2020, the turnover was the equivalent of 52% of the vehicles that were new to the file. So from an acquisition perspective, it means we need to double each year. Without SB 127, we’ll never get there.
There are many that we need to thank for a successful event including members of the EV Club and the Tesla Owners Club, not only for coming, but also for reaching out to our legislators; the public officials who support this bill; the IBEW; and Tesla, Rivian, and Lucid.
As encouraging as it was to see this level of support, it’s not over. The bill will be called for a committee vote on Wednesday. If it passes, then it goes before the full chamber. It feels like we’re only to the quarter-finals. We will update this space as we move up the brackets.
Tesla Model X in chrome wrap. Model Y on the right.
Lucid Air Interior, Who are those masked men – Barry Kresch and Bruce Becker getting set for the presser, Senator Haskell speaking about the bill (Majority Leader Duff in the background)
One final note: We have been asking people to tell their legislators they support this bill. That doesn’t stop with the press conference or even the committee vote. It is important they hear from you. Tesla has set up an “engage” page for CT that enables a 1-click message or the opportunity to customize it for yourself. You may have to set up an account. You don’t need to be a Tesla owner to do that.
EV Freedom Bill Press Conference
Press Conference on March 22 for SB 127
The office of CT Senator Will Haskell is organizing a press conference for Monday, March 22. It will be held outdoors at the Westport Train Station (New Haven-bound side) at 10 AM.
UPDATE: LUCID VEHICLE (pictured above) EXPECTED TO BE BROUGHT TO THE PRESS CONFERENCE.
All EV owners are invited to join us and spread the message that consumers should be able to buy the EV that fits their lifestyle and budget, and be able to do so in CT.
SB 127 would allow manufacturers of exclusively EVs that do not have a franchise dealer network to open stores in CT, which is one of a handful of states that currently prohibit this. Check out this video made by Will Cross of the CT Tesla Owners Club.
Even if you can’t join us, please write to your state senator and representative and tell them you support this bill.
Tesla has put up a page that enables one-click contact for your rep. (You may need to create an account.)
This is an earlier post that goes into more detail about the details of why we support this.
Is This Really Happening – OEMs Bypassing Dealers?
Volvo Is First Manufacturer to Bypass Dealers for EV Sales
When we blogged about the EV Freedom Bill, SB 127, a short while back, one of the facts that we unearthed was that in Germany, Volkswagen had basically given up on its dealerships to sell EVs. It began selling them corporately, using the dealerships as agents. And their strategy worked! The company had a successful introduction of its ID.3 last fall and saw it become a top-selling BEV in Europe. (This car is not being brought to the USA. VW is now taking orders for its larger sibling, the ID.4 in this country.)
It was an interesting development, but it didn’t necessarily mean that we would see the same thing happen here given franchise laws that are generally more restrictive than in Germany, where manufacturers are allowed to own stores. Well, not so fast. The New York Times reported a story about Volvo announcing a transition to an all BEV lineup by 2030, 5 years sooner than what was viewed as an aggressive announcement by General Motors.
If you stay with the article as far as the 13th paragraph, this little tidbit is reported:
“In another break from the practice of traditional carmakers, Volvo’s electric models will be sold exclusively online.”
Volvo is implementing a no-haggle sales policy. Like Tesla. Dealers are being used only for test drives and delivery. In other words, the dealer becomes an agent. Exactly what VW is doing in Germany.
This was punctuated by a club member who lives in Fairfield County and had made an inquiry about the XC40 Recharge a while back. He was invited to an up-close and personal encounter with the car – in New York City. (There is no shortage of Volvo dealers locally.) Here is the invitation:
We presume this is a temporary strategy to prepare for the transition to all-electric. Or perhaps a hybrid strategy like Volvo’s corporate sibling Polestar, which has only 3 dealerships in the country. If it isn’t, then there will be no Volvo dealers and Volvo will have to shake hands with Tesla. Nonetheless, it is a dramatic announcement, and we wonder if this will result in legal wrangling. On the other hand, maybe they’re glad not to have to sell an EV.
Rivian Alerts Reservation Holders in CT, Urges Support of SB 127
Rivian mobilizes reservation holders for support
For those holding reservations for an electric pickup truck or SUV from new EV-exclusive manufacturer Rivian, where and how they will get possession of their vehicle when deliveries begin later this year remains unknown. Like Tesla, they are going the direct sales route. Unlike Tesla, they are just getting started and running the direct sales gauntlet in many states across the country. The issue is once again before the legislature in CT. This club supports it (SB 127). Below is the text of the letter sent by Rivian:
Dear Rivian Community Member,
Help us ensure your right to buy and take delivery of electric vehicles in Connecticut!
EV enthusiasts in Connecticut are rallying around SB 127, a bill that would enable Rivian to make vehicle sales directly to customers.
This bill’s passage means that electric vehicle companies like Rivian will be able to obtain a state dealer license directly. Without this legislation, Rivian and other EV manufacturers won’t be able to open retail sites, offer test drives, or sell directly to consumers. Don’t worry – whether or not this legislation passes, you’ll be able to buy and take delivery of your Rivian! The success of SB 127 simply protects your rights to learn about and purchase EVs in your home state.
Connecticut’s dealer associations oppose this bill. We’re asking that you and the broader EV community make your support for SB 127 known.
Here’s how you can help:
Earlier today, there was a hearing on SB 127. Rivian, other industry members, and interest groups all testified in favor. Please lend your voice by urging your representatives to advance this legislation. The easiest and most effective way to have your voice heard is to email your representative telling them you support this bill.
Click here to find your representativeand email or call saying that you support holding a vote and passing SB 127. If you’re sending an email, please also include Roland Lemar, the Chair of the Transportation Committee, as a recipient. Email: roland.lemar@cga.ct.gov.
To learn more about the benefits of direct sales, please read this blog post by the EV Club of Connecticut.
Thank you for helping us keep the world adventurous forever.
Team Rivian
SB 127 Direct Sales Bill Public Hearings Held on 2/19
SB 127 – Permit EV Exclusive Manufacturers to Sell Direct in CT
A virtual public hearing was held yesterday by the legislature for this bill. Both written and oral comments were solicited.
Of the 76 written comments and a full day of Zoom testimony, every consumer that testified was in favor of passing this bill. Not really a surprise that consumers support a consumer-friendly bill. It is still opposed by dealerships and the OEMs. Nothing has changed.
It is difficult to read the tea leaves regarding the impact of testimony, pro or con. The bill has to pass a committee vote and then be called for a vote in both chambers. We are encouraged by the large number of comments submitted and the support we are receiving.
Judging by the response in the testimony, constituents are sending a message: protecting the environment is important and consumer choice is important, more important than protecting outdated laws.
Special thanks to Senator Haskell and Representative Steinberg who submitted the bill, as well as Representatives Wood and Michel who came on board as co-sponsors.
This is a link to the full (7.5 hours) video which is posted to the Transportation Committee’s YouTube Channel.
Some relevant time-stamps:
Tesla – 1:29:58
Lucid – 5:13:56
Rivian – 6:39:27
Senator Will Haskell (bill sponsor) – 2:30:19
Mike Liebow (Tesla Owners Club) – 5:30:46 – And check out his pointed comments here
Leadership of EV Club CT:
Analiese Paik – 5:35:42
Paul Braren – 6:52:13
Barry Kresch – 7:10:40
Beats Netflix!
Thanks to all who were involved in this effort. And let’s keep at it.
Paul Braren also wrote a detailed and thoughtful piece on hisblog.
Advocacy for SB 127 (Direct Sales) and SB 718 (Fossil Fuel Moratorium)
SB 127 – Permits Direct Sales of EVs
SB 127, the bill permitting EV-exclusive manufacturers that do not have an existing dealer network to sell directly to open stores and service centers in CT is scheduled for a public hearing on Friday, Feb. 19th, beginning at 10 AM. We encourage everyone to submit written or oral testimony. Instructions and link to register below.
*TRANSPORTATION COMMITTEE
FRIDAY, FEBRUARY 19, 2021
The Transportation Committee will hold a public hearing on Friday February 19, 2021 at 10:00 A.M. via Zoom. The public hearing will be recorded and can be viewed via YouTube Live. In addition, the public hearing may be recorded and broadcast live on CT-N.com. People who wish to testify via Zoom must register using the On-line Testimony Registration Form or copy this link into your browser https://zoom.us/webinar/register/WN_2SAYBsW_SQyu5CD7jU3VGA. Registration will close on Thursday February 18, 2021 at 3:00 P.M. Speaker order of approved registrants will be posted on the Transportation Committee website. If you do not have internet access, you may provide testimony via telephone. To register to testify by phone, call the Phone Registrant Line at (860) 240-0590 to leave your contact information. Please email written testimony in PDF format to tratestimony@cga.ct.gov. Testimony should clearly state testifier name and related bill information. The Committee requests that testimony be limited to matters related to the items on the Agenda. The first hour of the hearing is reserved for Elected and Public Officials. Speakers will be limited to three minutes of testimony. The Committee encourages witnesses to submit a written statement and to condense oral testimony to a summary of that statement. All public hearing testimony, written and spoken, is public information. As such, it will be made available on the CGA website and indexed by internet search engines.
SB 718 – A Moratorium on New Fossil-Fuel Power Plants
SB 718 – This bill imposes a moratorium on building new fossil-fuel power plants. The immediate threat is the proposed Killingly natural gas power plant, which has already been issued some of the required permits by DEEP. We ask everyone to call as described below.
The Energy & Technology Committee has not raised SB 718, Senator Cohen’s bill to establish a moratorium on new fossil fuel plants. We need to show strong support for this by calling the Energy & Technology Committee TODAY (Thursday, February 11) and urging they raise this bill. The last day the Committee can raise this bill is Tuesday Feb 16, and tomorrow and Monday are state holidays, so today is the day to put on the pressure.
Here’s what to do:
Call (860) 240‑0430 – Very likely you will leave a message.
“My name is (YOUR NAME), I am calling from (YOUR TOWN), I am calling to urge that the Energy & Technology Committee raise Senate Bill 718 as a Committee Bill. We are facing a climate emergency, yet fossil fuel power plants are still being proposed and approved here in Connecticut. This bill would establish a moratorium on fossil fuel power plants, and it is crucial that the Committee discuss this important topic. Thank you.”
This is the final roll call.
