Dealers Frustrated With Amazon, Rivian Pre-Owned, Kirkland Towers

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With only 6 days left in the month, we’re cruising into Wednesday. Today, we’ve got an update on the Hyundai-Amazon partnership and how dealers are feeling about it. Plus, we’re talking about Rivian’s new pre-owned program and a new Costco that is stacking apartments on top of its warehouse.

Show Notes with links:

• Hyundai’s ambitious plans to sell vehicles through Amazon are testing dealer patience, as the initiative is still in its pilot phase after being announced a year ago. During the Automotive News Congress, industry leaders voiced their concerns about the partnership and its broader implications for dealerships.
  • NADA CEO Mike Stanton noted the frustration, calling the platform "just another digital retail tool" rather than a top-tier solution.
  • NADA is collaborating with Hyundai and Amazon lawyers to ensure the partnership complies with state franchise laws, as Amazon's goal for a seamless customer experience is proving more complex than anticipated, especially in financing and trades.
  • Inga Maurer from McKinsey warned of risks, cautioning dealers about the potential loss of customer data, which Amazon could leverage for marketing other products like parts.
  • Eddie Hall III of Hall Automotive acknowledged that Amazon could become an additional sales channel but emphasized that in-person dealership visits remain crucial.
  • Stanton questioned whether customers would make significant purchases like cars on Amazon, saying, "I don't think I am going to go over and buy a car after I buy my toothpaste."

• Rivian Automotive is diving into the pre-owned vehicle market with its R1T pickup and R1S crossover, aiming to create new revenue streams as new vehicle deliveries slow in the U.S. This move marks a pivotal step as the EV maker matures in a competitive industry.
  • Sales of new R1 vehicles have stalled, with registrations dropping 0.3% in July.
  • Pre-owned EVs are attractive due to significant depreciation on new models, making them a bargain.
  • Rivian posted a net loss of $1.5 billion in Q2 but expects increased demand for used EVs due to price drops across the market.
  • Analyst Ivan Drury of Edmunds praised the program, saying it builds consumer confidence and is "almost mandatory" for brand legitimacy.

• Costco has officially started construction on its first-ever mixed-use development in South Los Angeles, combining a warehouse with 800 residential units above it. The project aims to tackle LA’s housing crisis while providing essential retail services.
  • Located in Baldwin Village, the Costco will feature typical services like a pharmacy, optical care, and grocery delivery and will create 400 jobs.
  • 23% of the units are designated for low-income households, and developer Thrive Living is using modular design to keep housing costs low, with amenities such as

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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