Most sales projections coming out of last month’s North American International Auto Show indicate a slow, gradual, but extended decline following a banner year in 2016. However, competition and sales activity looks to be rousing in one niche area of the industry – the online marketplaces – which is forcing traditional carmakers and sellers to react to stronger showings by automotive e-commerce companies.
Who are the change agents that are disrupting the brick-and-mortar dealership model? Well, there are seemingly too many to count, but here are a few of the notables:
Additionally, e-commerce giant Amazon made headlines when it secured major contracts as part of its push into the aftermarket where it poses a threat to other DIY choices like AutoZone, Genuine Parts and Advance Auto Parts. It would seem this is just one move closer to Amazon selling its own cars, which it already does in Italy. Just imagine, you could soon have a brand new hybrid sedan delivered to your home with a trunk filled with Amazon supplied groceries, household cleaners and electronics…
In a consumer-driven economy, these peer-to-peer marketplaces and vehicle-sales tools offer cash and convenience. Even Andy Moss, CEO of California-based Roadster, has said his goal is not to get consumers into the dealership, but to avoid it and the traditional car-buying experience entirely.
While we may not be surprised by e-commerce’s healthy growth over the years, it will be interesting to see how the industry mainstays respond, as all of these developments and new entrants signal more innovation and realignment within the auto sales business.
This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney.
This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary.
The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites.
In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.