The Cobalt Group and GE Capital AFS Forge Alliance to Launch Wholesale Used Vehicle Exchange
21 August 2000
Agreement Combines Cobalt's Industry-leading Dealer Network And B2B Web Site, MotorPlace.com, with GE Capital Auto Financial Services' Proven Internet-based Off-lease Vehicle Marketing System
SEATTLE - The Cobalt Group , an automotive industry Internet leader, and GE Capital Auto Financial Services agreed today to launch MotorPlace Auto Exchange, a wholesale used vehicle exchange located at Cobalt's MotorPlace.com portal.Under the agreement, GE Capital Auto Financial Services will license to Cobalt its GEAutoDirect.com wholesale vehicle distribution system and list its high quality off-lease vehicles on the Exchange. Cobalt will enlist other lessors and make the entire system available to car dealers throughout the country, including thousands of dealers who are already Cobalt customers. GE Capital Auto Financial Services will use the system to supplement its traditional sales efforts that involve auction partners.
"Ten million vehicles are sold through physical auctions each year," said John Holt, president and CEO of The Cobalt Group. "By combining Cobalt's growing network of auto dealers with GE Capital Auto Financial Services' proven wholesale vehicle distribution system and know-how, MotorPlace Auto Exchange will provide lessors and dealers with a powerful Internet-based system."
"MotorPlace Auto Exchange underscores our vision and commitment to our B2B portal, MotorPlace.com," said Holt. "Now, under one roof, Cobalt's dealer customers will have simultaneous access to a leading used vehicle exchange and our PartsVoice parts locating service, the nation's largest OEM parts database. Both are perfect examples of ways the Internet can be used to supplement and improve traditional distribution channels."
MotorPlace Auto Exchange, wholly owned and operated by Cobalt, is expected to be operational by September 30, 2000. The Exchange is building on the success of GEAutoDirect.com, which has sold more than 7,500 used vehicles since January to hundreds of dealers across the country.
"Our early experience in selling cars online has generated significant savings for GE Capital Auto Financial Services in remarketing off-lease assets," said Dan Henson, president of GE Capital Auto Financial Services. "We are excited about the prospects of combining our experience and technology with Cobalt's market leading position in providing Internet-based services to dealers. MotorPlace Auto Exchange will be open to thousands of buyers across the country, allowing GE Capital Auto Financial Services and other lessors to quickly move vehicles out of inventory, generating an immediate positive impact to our bottom lines."
Key benefits to lessors will include:
| -- | Wider exposure of inventory to thousands of dealers via the Internet. |
| -- | The creation of a one-stop shop for vehicle inspection, sale, and transportation to the buyer -- offering a compelling alternative to costly internal remarketing efforts. |
| -- | Distinct cost savings due to the ability to find wholesale buyers before incurring the cost of transporting vehicles to a physical auction. |
| -- | Reduced expense and better returns owing to faster asset liquidation. Key benefits to wholesale vehicle buyers will include: |
| -- | Access to thousands of vehicles from anywhere, at anytime. |
| -- | The ability to see the fully delivered cost for a vehicle, including inspection, regional pricing data, title transfer coordination and vehicle transportation. |
| -- | Professionally inspected vehicles with detailed photographs and descriptions to assure buyers of the vehicles' values. |
| -- | Instantaneous marketing of purchased vehicles to consumers via the dealer's Web site and through Cobalt marketing partners. |
How MotorPlace Auto Exchange will work:
With thousands of buyers accessing the system, MotorPlace Auto Exchange will provide an immediate and compelling alternative to lessors and other wholesale sellers for remarketing their used vehicles. To buy vehicles, dealers will simply log onto MotorPlace.com and click on the Exchange icon. They can search for vehicles based on make, model, year, location and other convenient criteria and view online detailed photographs and descriptions of the professionally inspected vehicles that match their criteria. Both buyers and sellers will be able to take advantage of an integrated set of fulfillment services the Exchange provides, including vehicle inspection, coordination of title transfer, financing and transportation.
The system will also allow dealers to instantaneously list purchased vehicles on their Cobalt-hosted dealer Web sites and through Cobalt's network of partner sites, including Yahoo, Excite, InfoSpace, DealerNet.com, DriversSeat.com and many others.
As part of the agreement, Cobalt will issue GE Capital Auto Financial Services shares of Cobalt's common stock as consideration for a license to the GE AutoDirect.com software. In addition, GE Capital Auto Financial Services will receive a warrant to purchase shares of Cobalt common stock.
Cobalt will operate MotorPlace Auto Exchange from new corporate offices in Chicago.
Both The Cobalt Group president/CEO John Holt and GE Capital Auto Financial Services president Dan Henson are available for interviews.
ABOUT MOTORPLACE.COM(TM)
MotorPlace.com(TM) is a business-to-business vertical portal for dealers and other auto industry participants. The portal aggregates vehicle and parts data from more than 12,000 auto dealers in the Cobalt network to create the largest dealer-to-dealer e-commerce marketplace in the automotive industry. It also provides U.S. auto dealers and other industry participants access to a broad range of powerful Internet-based business management tools, as well as information services such as daily automotive and national news, stock quotes and key weather information. Today's announcement is one of several major initiatives planned for MotorPlace.com in the coming months.
ABOUT THE COBALT GROUP
The Cobalt Group(TM) , headquartered in Seattle, is a leading provider of Internet-based products and services for the automotive industry. Cobalt helps dealers, dealer groups and automobile manufacturers harness the power of the Internet to realize new efficiencies, win new prospects and better serve their customers.
With approximately 6,000 dealer Web site clients, over 10,000 dealers using its parts locating system, and relationships with 14 automotive manufacturers and more than 50 of the 100 largest dealer groups in the United States, Cobalt is one of the leading technology companies serving the automotive industry.
Cobalt operates MotorPlace.com, a business-to-business vertical portal for the automotive industry; DealerNet, one of the best-known automotive destination sites on the Web; and PartsVoice, a leading OEM auto parts locating and data management service. The Cobalt Group also owns IntegraLink Corporation, the auto industry's premier provider of advanced data collection and reporting services. Cobalt offers Web site services that are endorsed by the National Automobile Dealers Association.
The Cobalt Group has offices in Seattle, WA; Portland, OR; Detroit, MI; Columbus, OH; and Austin, TX.
