Amazon As Local Car Dealer?

Special to The Auto Channel
From Gary Brooks CMO
Syncron

“The automotive service supply chain is already in a state of change. Brands such as Tesla are already allowing customers to circumvent the conventional dealership model and work with the OEM directly. Also, third-party vendors – including Amazon – are already making forays into the DIY automotive aftermarket space. So, the automotive industry is already substantially different compared to where it was 5 or 10 years ago.

News of Amazon’s direct selling of cars in Europe is just the next step in the disruption of automotive manufacturing, and more specifically the supply chain. It will be particularly interesting to follow given the resources and infrastructure that the company has at its disposal. Given how broad its reach is, Amazon has already been able to establish itself as a primary competitor to traditional parts shops, and could further consolidate its hold on this space by striking exclusive online parts deals with manufacturers. Furthermore, given its shipping expertise and network, Amazon will likely be able to overcome and solve shipping issues that have been challenging for OEMs in the past. It could be in prime position to rewrite the book on the logistics of shipping large durable goods, such as cars, heavy equipment and more. Paired with its pricing dominance, this could be a real shake-up for the automotive world.

Automotive OEMs must adapt to compete (and win) against big players like Amazon. Customers have higher expectations than ever, and sticking to the status quo will leave many manufacturers behind. However, if OEMs adopting emerging technologies and sophisticated systems that help deliver the service experiences customers expect, they will come out on top.”