Asymmetric Information in Car Buying and the Need for Flexibility in Distribution Models

One of the benefits of electric vehicles is they cost less to maintain. But that also means there’s less profit to be had in servicing their warranties, which gives car dealers less incentive to sell them. That’s why EV makers like Tesla and Rivian depend on direct-to-consumer sales and distribution. Unfortunately, there are decades-old dealer-distribution laws standing in the way. Rob and Jackie sat down with Daniel Crane, the Frederick Paul Firth Senior Professor of Law at University of Michigan, to discuss how these laws harm consumers and undermine technological innovation. 

Related

• David Hart, “Why a Measured Transition to Electric Vehicles Would Benefit the U.S.” (ITIF, November 2019).
• Dorothy Robyn, “Driving Change: A Front-Loaded, Aggressive Strategy for Federal Procurement of Electric Vehicles” (ITIF, December 2020).
• David Hart, “Time for a Serious U.S. Electric Vehicle Manufacturing Strategy” (ITIF, November 2020).