From Rival Partnerships to Self-Driving Trucks: The Industry Landscape is Quietly Transforming

CX Insights - Trend Watch - Automotive Industry (ICYMI August 2025)

Start your engines, auto aficionados! August delivered more twists than a mountain road rally, proving that the automotive revolution isn't just about electrification – it's about reimagining every aspect of how we buy, drive, and interact with vehicles. From Amazon turning car buying into one-click shopping to trucks that work the night shift without coffee breaks, this month showed us that the automotive industry has more plot twists than a Hollywood blockbuster.

The message is revving loud and clear: Today's automotive landscape isn't just changing lanes; it's rewriting the entire roadmap. Partnerships are forming faster than pit crew tire changes, autonomous tech is expanding beyond passenger cars, and subscription models are testing whether customers will pay monthly for horsepower. Buckle up as we navigate through August's most electrifying developments!

| DIGITAL SALES REVOLUTION: WHEN AMAZON MEETS AUTOMOTIVE

The Everything Store Gets Everything-on-Wheels

Remember when buying a car online sounded as crazy as ordering a pizza by carrier pigeon? Those days are officially in the rearview mirror. Amazon Autos just added CPO and used Hyundai vehicles to its online marketplace, expanding beyond its initial new vehicle offerings when Hyundai first announced their Amazon partnership. This isn't just about convenience – it's about transforming the entire customer experience from "I need to visit seven dealerships" to "I need to clear my driveway for delivery."

The plot thickens with Hertz jumping aboard the Amazon Autos train, planning to sell pre-owned vehicles through the platform as part of bolstering their retail business. This creates a fascinating three-way dance: rental company inventory management meets e-commerce giant logistics meets customer convenience expectations.

For traditional players like Carvana and CarMax, this development is like watching Amazon enter your neighborhood grocery business – suddenly, your "we make car buying easy" tagline needs some serious workshopping. The customer experience bar just got raised again, and now it comes with Prime shipping expectations and one-click purchasing psychology.

| PARTNERSHIP POWER-PLAYS: WHEN RIVALS BECOME ALLIES

Unexpected Alliances & Strategic Unions

In the automotive equivalent of former enemies becoming Facebook friends, GM and Hyundai announced plans for their first five co-developed vehicles. This partnership proves that in today's complex automotive landscape, sometimes the best way forward is together. It's like watching two master chefs decide to share recipes – the results could be extraordinary.

Meanwhile, Mercedes is reportedly in talks to use BMW engines for future petrol cars, specifically four-cylinder engines for next-generation PHEVs and range-extenders. This potential tie-up is automotive diplomacy at its finest – traditional rivals recognizing that efficient engineering trumps brand ego when customers demand both performance and practicality.

The rideshare world is also embracing partnerships, with Uber and Lyft CEOs expressing desire to add more robotaxis to their fleets. This represents a fascinating customer experience evolution: from "rate your driver" to "rate your algorithm."

| AUTONOMOUS EXPANSION: BEYOND PASSENGER CARS

When Trucks Drive Through the Night

The autonomous revolution is expanding beyond passenger vehicles, and frankly, it's about time. Self-driving trucks are now operating through the night, representing a logical evolution – freight doesn't get tired, doesn't need coffee breaks, and doesn't complain about working the night shift.

This expansion is gaining serious momentum with leadership changes and technological advances. Mohamed Elshenawy, former head of Cruise, joined Kodiak's board of directors, bringing autonomous vehicle expertise to the commercial trucking space. Meanwhile, GM is planning a renewed driverless car push after the Cruise debacle, proving that setbacks are just setups for comebacks.

The technology itself is evolving rapidly. Camera-only driverless tech is now considered "good enough," according to Imagry, potentially reducing costs and complexity. And for those ready to take the autonomous plunge personally, self-driving cars for personal ownership have been introduced, while Waymo tests self-driving taxis in New York City.

| SUBSCRIPTION MODELS: THE MONTHLY HORSEPOWER VALUE DEBATE

VW's Power-On-Demand

Here's where things get interesting (and potentially controversial): VW just introduced monthly subscriptions to increase car power, calling it an "optional power upgrade" designed to give customers more choice. This follows BMW's heated seat subscription experiment, raising the eternal question: what makes car subscriptions successful versus ending up with dissatisfied customers?

The key difference lies in customer perception of value and choice. VW's approach shows promise when positioned as "unlock additional performance when you need it" – offering genuine flexibility for drivers who want occasional power boosts without committing to permanent upgrades. The success will likely depend on implementation: presenting this as a true enhancement option that adds convenience and customization to the driving experience.

From a customer experience perspective, this represents an exciting evolution toward software-defined vehicles where features can be tailored and optimized based on individual usage patterns and preferences. The opportunity here is significant: will customers embrace this new level of personalization and flexibility in their automotive experience?

| THE ROAD AHEAD: CUSTOMER EXPERIENCE AS THE ULTIMATE DESTINATION

August's automotive developments paint a clear picture: the industry's transformation isn't just about electrification or automation – it's about reimagining every touchpoint of the customer journey. From Amazon's one-click car buying to VW's subscription horsepower, OEMs are learning that modern customers expect the same seamless, personalized experience they get from their favorite apps.

For business process outsourcing partners supporting OEMs, this evolution represents both challenge and opportunity. Customer expectations are evolving faster than traditional automotive timelines, demanding agile support systems that can adapt to subscription models, digital sales processes, and AI-driven personalization while maintaining the trust and reliability that automotive customers expect.

The common thread connecting all these developments? Success requires mastering the balance between technological innovation and human-centered design. Whether it's GM and Hyundai combining engineering expertise or Amazon applying e-commerce mastery to automotive retail, the winners are those who put customer experience at the center of their strategic partnerships and technological investments.

| JUST FOR FUN: WHEN PATENTS GET STRANGELY SPECIFIC

And just when you thought the automotive industry couldn't get more interesting, Ford might be preparing to make your next vehicle capable of digging holes. Yes, you read that correctly – Ford has filed a patent for "dig mode," potentially turning trucks into excavation equipment. Because apparently, the question "what else can this vehicle do?" is now being answered with "landscaping."

If that doesn't perfectly encapsulate the automotive industry's current "why not?" attitude toward innovation, nothing will. Your next service call might include: oil change, tire rotation, and backyard pool installation.

That's your August snapshot! The automotive industry continues to shift into a future where traditional boundaries blur, unexpected alliances form, and the only constant is the thrilling unpredictability of innovation. Stay tuned for September’s revelations, where we'll discover what new chapters this industry will write in its ongoing transformation story.