Chevy, Honda, Mazda, Mitsubishi and Hyundai all are planning to sell their brands through the end of this year, in a move that could bring more consolidation into the market, as the companies look to regain market share in the next few years.
But it’s not just the big names.GM and Honda have all announced plans to sell parts directly to consumers through their online store.
And as of now, the sales teams at the three companies aren’t sure if they will sell parts direct to consumers in the same way they currently sell parts to consumers.
And it could be that this next wave of consolidation will come as soon as this year.
“There is a great deal of uncertainty and uncertainty as we enter a time where a lot of consolidation is going to happen, and this is going not to be the end but the beginning of a consolidation in the automotive industry,” said Scott Eichler, executive vice president of automotive at RBC Capital Markets.
Eichler pointed to the fact that the industry has seen a sharp drop in sales for Honda and GM since the mid-2000s.
“I think the big question for us is: Can we sustain this growth for the next couple of years,” he said.
The automakers have been facing stiff competition from Chinese and foreign rivals.
And analysts say the companies have to deal with a glut of spare parts and a lack of suppliers.
“We see them as a much bigger threat to the industry than they are to the traditional automakers,” said Peter J. Kohn, chief analyst at Forrester Research.
“They’re going to have to go in and compete on cost, on quality, on reliability and on quality of parts.”
But the automakers may be able to keep the pressure on as consumers look to buy more parts directly from the companies.
The Ford Motor Company has said that it will begin selling its entire assembly line of trucks and SUVs through a new online store in 2019.
And GM has already started offering its entire production line of compact vehicles through its online store and has said it will soon offer its entire lineup of small car, truck and SUV vehicles.
The automaker also said it would begin selling parts directly directly to customers through its dealership network in 2019 and said it plans to start selling parts direct in 2020.
Ford and GM both said that the online stores will allow customers to make their purchases with one click.
But consumers have questioned whether the companies can effectively serve this market.
“What we’re seeing from the industry is a lack in transparency,” said Mark Mazur, director of research at Gartner.
“We’re seeing a lack there of information on how the companies are managing their supply chains.
They’re trying to provide a level of transparency to their customers, but they’re not transparent enough.”
In an interview with CNBC, Ford said it is “committed to delivering the best possible service to its customers and partners and will continue to invest to make our platform the best it can be.”GM also said that its online dealership will be the first to offer its full line of vehicles.
And while the companies say they have been transparent about the logistics of their supply chain, the companies said they still aren’t clear on how they will manage inventory and how they’ll manage parts and labor costs.
“It’s going to be a little bit challenging for our dealerships to do it all on their own,” said Jodi Wasserstrom, vice president and general manager of GM’s North American auto parts and accessories business.
“But we will be doing that to the best of our ability.”
Wasserstrom said GM and Honda will both continue to sell the parts and parts to the public through their dealerships and through a partnership with online retail giant Amazon.