For decades, buying a new car has typically meant visiting a dealership, negotiating with a salesperson, reviewing financing options, and completing the necessary paperwork. That traditional process is now facing a different model in which customers can purchase vehicles directly from the automaker. Washington lawmakers recently supported legislation that would give certain electric vehicle manufacturers more freedom to sell directly to buyers.
Honda, Ford, and General Motors opposed the measure, arguing that it weakens the traditional franchise system. Their objections did not stop lawmakers. The Washington House passed the bill 84 to 9, and the Senate later approved it before Governor Bob Ferguson signed it into law in March 2026.
Why Honda, Ford, and GM Said No
The disagreement comes down to how cars reach buyers. Honda, Ford, and General Motors rely on franchised dealers to sell and service their vehicles. Under that model, an automaker supplies vehicles to independent dealerships, while those businesses handle retail sales, customer relationships, maintenance, and much of the local service work.
Washington’s legislation created an exception for qualifying manufacturers that can sell their own vehicles directly. The companies opposing it argued that this gives certain EV makers an advantage that established automakers do not receive under the same rules.
During testimony, Honda representative Craig Orlan described the proposal as a gradual weakening of the franchise system. Ford and GM representatives also testified against the bill. The Alliance for Automotive Innovation, which represents major automakers, raised similar concerns.
Their argument was not simply about losing showroom traffic. They said the franchise system provides consumers with established places for vehicle service and support. A buyer who purchases a traditional automaker’s vehicle can generally visit a local dealer for warranty work, repairs, and maintenance.
The automakers therefore saw the bill as more than an EV sales measure. They viewed it as a change to rules that have governed the relationship between manufacturers and dealers for decades.
What the Direct Sales Bill Actually Does
The legislation is aimed at expanding access to electric vehicles already being sold in Washington. It allows a qualifying new vehicle manufacturer to sell its own vehicles directly to consumers, provided it meets specific requirements and maintains a vehicle dealer license.
That wording matters. The law does not simply give every automaker permission to ignore the dealer system. Instead, it establishes conditions under which certain manufacturers can use direct sales.
The measure also contains protections intended to prevent established automakers from creating a new company or subsidiary merely to qualify for the direct sales exception. The legislation says existing manufacturers cannot acquire a dealer authorized to sell directly and use that arrangement to gain access to the exemption.
There is another piece to the legislation that has little to do with showroom battles. It increases certain vehicle-related fees, with money directed toward programs designed to reduce EV purchase or lease costs for qualifying consumers and support transportation investments.
Supporters presented the measure as a way to give EV manufacturers another path to reach customers while keeping consumer protections in place. Rivian and Lucid supported the proposal, along with other groups interested in expanding EV access.
Why Dealers Backed the Measure
The dealer position may seem surprising at first. Dealership groups have frequently opposed direct sales because manufacturers could theoretically sell vehicles without using traditional retailers. Yet Washington’s measure included provisions intended to protect existing dealers.
The bill strengthened restrictions against manufacturers competing unfairly with dealers and increased enforcement of those rules. It also required direct sellers to follow certain dealer-related requirements.
For Washington dealers, the proposal became a negotiated arrangement with EV manufacturers such as Rivian. The legislation expanded a limited exception for manufacturers that had never relied on Washington’s traditional dealer network while keeping restrictions aimed at preventing established automakers from bypassing their dealers.
That distinction helped produce an unusual political alignment.
Rivian supported the measure. Dealer groups supported it. Honda, Ford, GM, and the Alliance for Automotive Innovation opposed it.
The disagreement shows that the debate is not simply manufacturers against dealers. Different businesses can have different interests depending on how they currently sell vehicles and what they want to do next.
Traditional automakers already have extensive dealer networks. Newer EV companies may see direct sales as a practical way to establish a retail operation without first creating a large franchise network.
For consumers, that means the buying process could vary depending on the brand and the type of vehicle being purchased.
The 84 to 9 Vote Sent a Clear Message
Despite opposition from major automakers, the Washington House approved the measure 84 to 9 on March 11, 2026. The Senate had already passed its version 46 to 3, showing broad legislative support before the final House vote.
Those numbers are difficult to dismiss as a narrow victory. The legislation received support from lawmakers across a broad portion of the chamber, even though major automakers had raised concerns about the effect on the franchise system.
After the House vote, the bill returned to the Senate. The Senate passed the final legislation 47 to 2 on March 12. Governor Bob Ferguson signed it on March 24, and the law was filed the following day.
The law became a real change in Washington’s vehicle sales rules rather than simply another proposal that disappeared after a legislative session.
For automakers, the message is worth watching. A state does not have to abandon the dealer system completely to create room for direct sales. Lawmakers can create targeted exceptions, attach conditions, and still maintain rules designed to protect existing dealers and buyers.
That approach could influence similar debates elsewhere, especially as more automakers develop electric models and new EV companies enter the market.
What This Means for Car Buyers
For shoppers, the most visible effect may be greater choice in how certain electric vehicles are purchased. A buyer may be able to complete a transaction directly with an eligible manufacturer rather than relying on the traditional dealership process.
That does not mean every car brand will suddenly abandon dealerships. Honda, Ford, and GM still operate extensive dealer networks, and the Washington law does not force them to replace those businesses with direct sales. The legislation specifically limits who can qualify for the new sales option.
There are also practical questions about service, repairs, warranty work, and customer support. Supporters of the traditional system point to dealerships as established locations where owners can receive maintenance and warranty assistance. Washington’s legislative record specifically identifies local service access as a concern raised by legacy automakers.
The direct sales model takes a different approach. It allows automakers to have greater control over the buying experience and communicate directly with customers without relying on independent dealerships as intermediaries.
Neither approach removes every concern. Dealerships provide physical locations and local staff, while direct sales can give manufacturers greater control over pricing and the purchase process.
Washington has now chosen to allow a limited version of that second approach for qualifying EV manufacturers. The 84 to 9 House vote shows how strongly lawmakers backed the change, even after Honda, Ford, and GM argued against it.
