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Episode #1298: The Alliance for Automotive Innovation CEO John Bozzella joins Paul and Kyle to discuss his automotive news op-ed that lays out the case for a recent Washington state piece of legislation that could pave the way for Chinese automakers to bypass the U.S. franchise system.

• In an Automotive News Op-Ed, John Bozzella argues that Washington state quietly handed EV-only manufacturers a direct-sales pass, and the Alliance for Automotive Innovation CEO says the real danger isn't Rivian or Lucid — it's who comes next.
  • Washington now allows three EV-only manufacturers to sell directly to consumers, bypassing the franchised dealer system that protects the broader retail network.
  • The Washington State Auto Dealers Association backed the law, believing it would lock in protections for franchised dealers by drawing the line after existing EV-only brands.
  • The Alliance for Automotive Innovation opposed the plan, arguing one set of rules should apply to all manufacturers regardless of powertrain or market entry date.
  • The bigger concern: Chinese automakers with ambitions to enter the U.S. market now have a legal framework they could use to pursue a fourth, fifth, or sixth direct-sales exemption.
  • Bozzella didn't mince words: "The competitiveness of the auto industry and the dealer franchise system will suffer if Chinese automakers are allowed to do in the U.S. what they're already doing around the world."
  • This comes as the Alliance for Automotive Innovation, NADA, Autos Drive America, the American Automotive Policy Council, and MEMA, sent a joint letter to the Trump administration this week with a unified message: keep Chinese automakers out of the U.S. market, and don't let them build their way around the rules either.

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