Everybody thinks they have a better idea on how to sell cars. Many companies have tried it, but at the end of the day, the majority of them failed. Now Amazon, a company I respect, is going to try it with Hyundai. Many questions arise: How much in commissions does Amazon get? How much does a middleman add to the price of the car for consumers? If you buy from Amazon and have a problem, do they take care of it? What do they do if you have a trade-in or need financing? We’ll find out over time, but I suspect this is just another lead provider, that Amazon will charge for, and will add to the bottom-line price of the Hyundai you want. Read on for what we know.
Jerry Reynolds, The Car Pro
Amazon plans to launch online vehicle sales in its U.S. store, starting with Hyundai in 2024. It's part of a new partnership the companies recently announced. The idea is that customers will find and buy their vehicle on Amazon.com, then pick it up from their local dealer.
Another part of the recently announced partnership is that Hyundai has named AWS as its preferred cloud provider to help facilitate the digital transformation of the automaker’s operations, production, and customer service. This includes the Alexa Built-in experience coming to Hyundai’s next-generation vehicles.
“Hyundai is a very innovative company that shares Amazon’s passion for trying to make customers’ lives better and easier every day,” said Amazon CEO Andy Jassy. “Our broad, strategic partnership should do just that, from changing the ease with which customers can buy vehicles online, to making it simple to use Alexa in Hyundai vehicles for entertainment, shopping, smart home adjustments, and calendar checks, to enabling Hyundai to transform their customer experiences and business operations by moving to AWS. We look forward to inventing together for many years.”
“Partnering with one of the world’s most customer-centric organizations unlocks incredible opportunities as we continue to expand our portfolio, grow our sales network, transition to electrification and realize the future of smart mobility,” said President and CEO of Hyundai Motor Company Jaehoon (Jay) Chang. “Amazon is the ideal partner to help realize our vision of progress for humanity, including improving how people and goods move more efficiently and sustainably. Hyundai is the first automotive company available for full end-to-end transactions in Amazon’s U.S. store and this is another example of how we continue to push for ways to elevate the customer journey together with our outstanding retail partners.”
Here's are some more details about each aspect of the new partnership:
Vehicle Sales: In 2024, auto dealers will be able to sell vehicles in Amazon’s U.S. store for the first time. Hyundai will be the first brand available for customers to purchase. The companies say this new digital shopping experience will make it easy for customers to purchase a new car online, and then pick it up or have it delivered by their local dealership at a time that works best for them. Customers will be able to search on Amazon for available vehicles in their area based on a range of preferences, including model, trim, color, and features, choose their preferred car, and then check out online with their chosen payment and financing options. Amazon and Hyundai say online Amazon vehicle sales is another way for dealers to build awareness of their selection and offer convenience to their customers.
Cloud Transformation: Hyundai has selected AWS as its preferred cloud provider to accelerate its digital transformation using broad and industry-leading AWS capabilities—from compute, storage, database, and analytics to generative AI and Internet of Things (IoT). As part of a new multiyear agreement, Hyundai says it will become a more data-driven organization with a cloud-first technology strategy, migrating its current on-premises applications—which support everything across research, product engineering, and customer engagement—to AWS. Hyundai says it will prioritize business cases like manufacturing and supply chain to help optimize production and minimize costs, security and disaster recovery for resiliency, and connected vehicle development to bring new features to drivers around the globe. AWS and Hyundai have designed and implemented a Master Builder training and certification program to train Hyundai engineers in critical cloud skills.
In-Vehicle Solutions: Starting in 2025, Hyundai says customers who purchase the brand's next-generation vehicles will be able to access the hands-free Alexa experience they have at home, while in their car. Drivers can ask Alexa to play music, podcasts, or audiobooks, set reminders, update to-do lists, and check calendars. They'll also be able to control their smart home from the road, such as asking to warm up the house on their way home, double-checking doors are locked, and managing smart lighting and Alexa routines. Drivers will also be able to ask Alexa for up-to-date traffic updates or weather reports and voice-control the in-vehicle media player or navigation system—with certain Alexa features accessible even when internet connectivity is intermittent or not available.
Photo: Amazon/Hyundai Motor Company.
