J.P. Morgan Chase, AmeriCredit and Wells Fargo to Launch DealerTrack
NEW YORK--Jan. 29, 2001--On January 29, 2001, the founding companies will host a media teleconference at 11:00 AM (Eastern Standard Time) during which executives from the founding companies will describe the new venture and answer questions. To participate, please call 800-967-7140 for the DealerTrack press call.
J.P. Morgan Chase & Co. , AmeriCredit Corp. and Wells Fargo & Company today announced the formation of DealerTrack, a new company that will jump start the auto industry's conversion to a web-based auto finance process. Revolutionizing the way auto dealers and lenders conduct business, the new company will automate the entire dealer - lender process from financing to daily information sharing. Equity financing is being provided to the new company by AmeriCredit, Wells Fargo and J.P. Morgan Chase's e-finance unit, LabMorgan.
Three auto finance industry leaders, Chase Auto Finance, AmeriCredit and Wells Fargo have developed the DealerTrack(SM) system, which will be supported by the combined national sales networks of these three founding organizations. This Internet-based B-to-B system is designed as an open model for all auto dealers and lenders to share the technology, allowing dealers to submit a consumer's credit application online to multiple financing institutions. DealerTrack is already working with several other financial institutions to connect them to the network.
Dealers can also access real time application and contract status information from each online lender on the DealerTrack platform, regardless of whether their application was sent electronically or by fax. Other products will also be offered via DealerTrack to enhance the dealers' day-to-day business management. The result is a more efficient workflow process for the dealer, lower processing costs for the lender, and an ultimately easier, faster experience for the consumer.
"The creation of DealerTrack is a major event in transforming the traditional business model into a streamlined, customer-focused e-commerce model for auto financing," said David A. Coulter, J.P. Morgan Chase Vice Chairman and head of its retail and middle market business and LabMorgan.
"This on-line system is best-in-its-class with comprehensive feature functionality, and as an open system for all lenders it will revolutionize the auto finance industry, much in the same way that ATM networks revolutionized the banking industry," said Norman Buchan, J.P. Morgan Chase Executive Vice President and President of Chase Auto Finance.
"This venture creates an exciting opportunity for three industry leaders in auto finance to join forces, leveraging their individual strengths to enhance the total package being offered to dealers," said Michael R. Barrington, AmeriCredit CEO. "This jointly owned company creates the foundation to web-enable the auto financing process. We also intend to broaden the base and involve other interested lenders and non-lenders as potential alliance partners in the company."
"The consortium considered every aspect of the dealer-lender relationship in developing the functionality and comprehensive technology platform, and more than 4,000 dealers have signed up and are using the DealerTrack system," said Dick Schliesmann, Executive Vice President at Wells Fargo. "Lenders now have a more effective channel to conduct business with their dealers via the web, so that many of a dealer's questions, which previously required a phone call or fax to a lender, can now be resolved by accessing DealerTrack. And since the site is available 24 hours a day, 7 days a week, it will eliminate dealers' dependence on the business hours of the lender's operation. "
The DealerTrack system provides dealer specific financial information, similar to a bank statement, and is updated daily, enabling dealer personnel to keep month-end accounting efforts to a minimum. Other site features enable dealers to access current rates and programs, run payment calculations, compare products, and access customer payoff information. All of the information contained on the system is secure so that users can only view the data which pertains to their business.
Chase Auto Finance, a division of J.P. Morgan Chase & Co., is among the largest bank originators of auto loans and leases in the U.S. Chase originates approximately $1 billion in auto loans and leases monthly and has more than $24 billion in receivables in its auto finance portfolio. Chase maintains a network of approximately 9,600 auto dealers nationwide.
LabMorgan is the e-finance unit of J.P. Morgan Chase. Its purpose is to find, nurture, invest in, and help to commercialize e-finance initiatives that will transform J.P. Morgan Chase and the financial services industry. J.P. Morgan Chase & Co. (NYSE: JPM, www.jpmorganchase.com) is a premier global financial services firm with assets in excess of $705 billion and operations in over 60 countries. The firm is a leader in investment banking, asset management, private equity, consumer banking, private banking, e-finance, and custody and processing services. Headquartered in New York, J.P. Morgan Chase serves 32 million consumer customers and over 5,000 corporate, institutional, and government clients.
AmeriCredit Corp. is a leading independent consumer finance company specializing in purchasing and servicing automobile loans. Using its branch network located across North America and through strategic alliances with select auto groups and banks, AmeriCredit purchases loans made by franchised and select independent auto dealers to consumers who are typically unable to obtain financing from traditional sources. AmeriCredit's managed auto loan portfolio totaled $8.2 billion at December 31, 2000. Visit www.americredit.com for more information on the Company.
Founded in 1852, Wells Fargo & Company is a diversified financial services company with $263.5 billion in assets, providing banking, insurance, investments, mortgage and consumer finance from more than 5,700 stores and the Internet (www.wellsfargo.com) across North America and elsewhere internationally.
DealerTrack can be found on the web at www.dealertrack.com. The product will be introduced to the entire automotive dealer community at the annual National Automobile Dealers Association (NADA) Convention in Las Vegas on February 3 - 6, 2001, Booth #2593.