Reynolds and Reynolds Buys Into J.D. Power
DAYTON, Ohio--Feb. 3, 2001 --The Reynolds and Reynolds Company and J.D. Power Clubs today announced that Reynolds and Reynolds has become an investor, acquiring an equity position in J.D. Power Clubs. Reynolds will provide technology, development, support and retailer training for J.D. Powers Clubs' carclub.com. Financial terms were not disclosed.
This pairing leverages Reynolds and Reynolds' leading information services technology to build and tap into J.D. Power Clubs' network of more than 2,000 automotive retailers, 4,500 automotive aftermarket service and parts suppliers and 150,000 consumer members. Moreover, it will bring Reynolds and Reynolds' customer relationship management expertise and its benefits to vehicle owners and automotive retailers nationwide.
While many automotive dot com's have experienced difficulties over the past year, J.D. Power Clubs' carclub.com has seen membership more than double in the fourth quarter and continues to attract investors with its unique business model. The carclub.com model provides distinct and measurable value to the consumer which is proving to be very attractive in the marketplace.
Lloyd `Buzz' Waterhouse, Reynolds' president and CEO said. "We're very impressed with the J.D. Power Clubs' business model, because it offers so much more than the early automotive e-commerce initiatives. J.D. Power Clubs' approach is consistent with ours and focuses on combining the best attributes of Internet buying with the physical retail experience into an integrated `clicks, bricks and mortar' solution that meets consumers' requirements."
"We've been very successful in securing some of the best companies in the world as strategic partners and investors," said Michael D. London, chairman and CEO of J.D. Power Clubs. "Reynolds and Reynolds has a very deep organization-wide focus on automotive retailing, with nearly three quarters of a century serving auto retailers and car companies. Their knowledge of the marketplace and their strong technical skills will help us take carclub.com to a new, competitively powerful position."
Reynolds and Reynolds joins other world-class shareholders, such as Sun Microsystems, SAS Institute, Ford, The Chase Manhattan Corporation, First Union, GE Financial, Hicks, Muse, Tate & Furst and more.
In this initial commercial effort, J.D. Power Clubs and Reynolds will create a "next generation" online car buying service that may finally meet the expectations of an increasingly Internet-driven consumer. Consumers will be able to select the actual vehicle they request from inventory on a dealer's lot and get actual prices, as opposed to the old model of sending a request and hoping for comparable matches. To build this new solution to online car buying, Reynolds will utilize the skills, capabilities and market know-how it has honed through the services it provides auto retailers, car companies and e-business customers.
"One of the powerful differentiators of this integrated solution will be the linkage of consumers to actual retailer inventory, creating a stronger bond and enhancing the experience for consumers and retailers," said Waterhouse. "carclub.com has cracked the code for delivering far more value to both consumers and auto retailers by continuing to grow their model that creates a long-term retailer/consumer relationship."
Reynolds provides distribution, data streaming and training services for other online car buying services and direct to auto retailers through its Automark Web services and hosting and Cybercar training solutions. "Reynolds is well-equipped to leverage its technology platform and market know-how to create the ultimate product for carclub.com," Waterhouse said. "This addition to our services offered to automotive retailers is consistent with our objectives of providing real value to retailers, car companies and consumers."
Reynolds and carclub.com will begin offering this joint solution to auto retailers and consumers in time for the 2002 new car buying season this summer.
J.D. Power Clubs provides consumers with the most trusted information and savings so that they can make smarter purchase and ownership decisions. Through carclub.com and the J.D. Power Consumer Center at www.jdpower.com, featuring highlights from J.D. Power and Associates research, J.D. Power Clubs creates a community of informed consumers. carclub.com, the first J.D. Power Club, supports car owners over the lifetime of their vehicles -- from selecting and purchasing, to financing, insuring and maintaining, and ultimately selling. carclub.com is the model for future J.D. Power Clubs, in the telecommunications, financial services, home building and travel industries.
Reynolds and Reynolds, headquartered in Dayton, Ohio, is the leading provider of integrated information management solutions to the automotive retailing marketplace. The company's services include a full range of retail and enterprise management systems, networking and support, e-business applications, Web services, learning and consulting services, customer relationship management solutions and leasing services. To find out more about the company, its vision, products and services, visit www.reyrey.com.
Certain statements in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on current expectations, estimates, forecasts and projections of future company or industry performance based on management's judgment, beliefs, current trends and market conditions. Forward-looking statements made or to be made by or on behalf of the company may be identified by the use of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, forecasted or implied in the forward-looking statements. See also the discussion of factors that may affect future results contained in the company's Current Report on Form 8-K filed with the SEC on August 11, 2000, which we incorporate herein by reference. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.