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It’s the first day of March and we’re talking about Dealer concern over the growing Amazon-Hyundai partnership. We’re also discussing new entrant EV makers Fisker and Polestar’s current state, as well as getting to the bottom of who paid 244k for a used Cybertruck.
U.S. auto dealers are torn over Hyundai's partnership with Amazon, fearing a shift towards a Tesla-like direct sales model. A majority in a recent survey view the venture with skepticism, questioning its impact on the traditional car-buying experience.
- Over half of the surveyed dealers in the recent Automotive News 2024 Dealer Outlook Survey view the online retailing program negatively, predicting a move away from traditional dealership roles.
- Amazon aims to redefine car buying with a click-to-buy experience, yet dealers worry about impacts on customer service and profit margins especially regarding F&I income
- "Many dealers believe what Hyundai and Amazon are co-developing will lead to more of a direct-to-consumer sales model," captures the industry's apprehension towards changing retail landscapes.
Fisker's recent warning about its future viability is underscoring the rocky journey of EV startups as it transitions to a dealership model and misses production targets has impacted its sales and financial stability, leading to a concerning "going concern" warning.
- Despite ambitious production goals, Fisker built just over 10,000 vehicles in 2023, delivering only 4,900 to customers, far below its 13,000-unit target.
- The company's stock took a significant hit, plummeting 34% after-hours to under 50 cents a share, reflecting investor skepticism.
- Henrik Fisker admits, "We recognize that the EV industry is going through a turbulent period," highlighting the challenges facing the electric vehicle market amidst cooling demand and heightened competition
- Meanwhile, EV competitor Polestar has secured funding of $1B from 12 global banks backing its journey towards innovation and expansion. Chinese EV maker Geely, remains a strategic partner and direct shareholder, reaffirms its commitment to Polestar's success, promising continued operational and financial support.
Who bought the Tesla Cybertruck recently auctioned for $244,000 on Cox Automotive’s Manheim auction platform for over double its retail price?
- Despite Tesla's efforts to prevent resale profit-seeking, a Cybertruck fetched $244,000 at the industry auction
- The big reveal was Porsche Orlando acquired the Cybertruck, but why? Dealership display? Do the
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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