SPRINGFIELD — State Senator Ram Villivalam hosted a press conference Tuesday morning, highlighting Senate Bill 1939 and how it supports the state’s economy, auto dealers, workforce and the future of electric vehicles.

“This legislation protects Illinois jobs, as we have over 700 dealers serving communities across the state that have created, maintained and supported over 90,000 jobs,” said Villivalam (D-Chicago).

Recently, out-of-state corporations have repeatedly bypassed the state’s current franchise system by selling directly to consumers through new subsidiary companies. Currently, some corporations such as Rivian and Lucid have received previous approval to participate in direct-to-consumer sales.

Senate Bill 1939 closes loopholes that allow out-of-state corporations to bypass state franchise laws and sell cars directly to customers through subsidiary companies. To strengthen protections, the measure prohibits car manufacturers from competing with their dealerships by selling, leasing or offering warranty services of a new vehicle directly to customers. 

The measure also prohibits manufacturers from using an affiliate or spin-off company to sell, lease or distribute new cars to consumers if the manufacturer currently or previously maintained a franchise or selling agreement in Illinois.

The bill also makes changes to warranty reimbursement protections by making sure routine maintenance such as filters, light bulbs, brake pads and tires are included.

“Illinois is a driving force and the future of electric vehicle sales, as we have seen exponential growth in the last few years as purchases from dealers across our state jumped from 11% to close to 40%,” said Villivalam. “When we talk about the future of electric vehicle sales, it is through supporting our auto dealers.”

Senate Bill 1939 currently awaits to be heard in the House.