Why NC law kept Amazon-backed automaker Rivian from putting $5B plant here - Triangle Business Journal - The Business Journals
An electric vehicle maker considered – and then rejected – North Carolina for a $5 billion manufacturing plant, and public records show it likely came down to politics.
Rivian, an Amazon-backed company that in December confirmed plans for a 7,500-job facility near Atlanta, Georgia, took North Carolina off the site list because a state bill it thought could pass was never brought forward.
While negotiating with the state over potential incentives, records obtained through a Freedom of Information request show Rivian, which is also backed by Ford Motor Company, was in contact with Wake County state Rep. Julie von Haefen on a measure that would allow certain automakers to sell directly to customers rather than through auto dealers – potentially leveling the playing field, as Tesla had already negotiated the ability to have six direct sale centers in the state – that state law was passed in 2019. The new bill would have allowed Rivian (Nasdaq: RIVN) the same opportunity.
But it never materialized.
North Carolina is one of several states with restrictions on direct sales for automakers – North Carolina also bans direct auto servicing. Georgia lawmakers have introduced a bill to allow electric vehicle makers to have unlimited dealer locations. Like North Carolina, the state currently allows Tesla to have a limited number of locations.
Haefen was not available Friday to discuss the situation with Triangle Business Journal, but the fact that the bill was never introduced appeared to have damaged negotiations. On May 4, 2021, Rivian told the state that “the foundation of our business model is direct-to-customer sales and service.”
“Unfortunately, North Carolina’s law as it currently stands would prohibit us from being able to do that,” the firm wrote the state. “This issue alone is making it very hard for us to dive deeper.”
Rivian didn’t completely rule out North Carolina – asking officials to provide background about how Tesla (Nasdaq: TSLA) got a carve out and what pathways could exist for Rivian to be able to sell here. But by July 30, the firm told the state that a “commitment to leveling the playing field” was the only way to move the needle.
Chris Chung, CEO of the Economic Development Partnership of North Carolina, wrote in an email that the bill not going through “would almost seem a disqualifier” on Aug. 3.
“We’re still not sure why Rivian did not take us up on the offer for the Governor and legislative leadership (to) meet with them about this,” Chung wrote.
Similarly to other EV efforts – including a Ford (NYSE: F) project, which considered North Carolina but eventually picked Tennessee – Rivian's interest seemed to quickly shift to other states.
“They haven’t taken us up on repeated invitations to meet, visit, engage, etc., i.e. the hallmarks of sincere interest in NC as a potential location,” Chung wrote Aug. 3.
The state had its kickoff meeting with company officials in December of 2020. By February, the firm had developed “working groups” around criteria to narrow its site selection. By April, the company told state officials they had “nine state proposals.”
source: https://www.bizjournals.com/triangle/news/2022/03/04/why-amazon-backed-rivian-picked-georgia-over-nc.html
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