AutoTradeCenter Internet Remarketing Joins Auction Lanes with Honda Finance
Business EditorsSCOTTSDALE, Ariz.--March 21, 2001--AutoTradeCenter.com Inc. (OTCBB:AUTC) Wednesday announced the expansion of the American Honda Finance Corporation Vehicle Inter-dealer Purchase System (VIPS).
VIPS now includes online sale of the Honda Finance lease vehicles while en route and marshaled at auctions nationwide. These auction facilities include select members of ADESA Corp., Auction Broadcasting Company Inc., Manheim Auctions, SERVNET and independent auction locations.
David Langley, American Honda Finance Corp. manager of lease-end remarketing, stated, "The success of the VIPS program, and its overwhelming support by our dealer body, has inspired comprehensive expansion to include our auction partners. Our objective is to keep our dealers in touch throughout the disposition cycle, taking advantage of every possible opportunity to sell the car.
"This expansion extends our dealer access to inventory previously unavailable."
Honda Finance host auctions will provide physical transport, inspection, and marshaling of Honda's VIPS online inventory as well as a variety of value-added services to purchasing Honda and Acura dealers. Those vehicles that remain unsold on the VIPS will be prepared for sale and sold in the auction lanes.
Frank Stephens, EVP marketing and strategic planning, ADESA Corp. commented, "Off-lease vehicle volumes are on the rise. Managing these assets requires a winning strategy and diverse channels. Honda Finance, with AutoTradeCenter, has been a pioneering force in utilizing the Internet to accomplish this task.
"We believe combining auction expertise, with proven Web presence provides the highest level of service to seller and buyer."
"In the VIPS original format," added Colette Marcilliat, vice president, marketing for ATC, "Honda/Acura dealers purchased 35 percent of all off-lease vehicles. We fully expect a lift in sales with the extended format as dealers, with a single VIPS log-in, can seamlessly access and purchase vehicles regardless of whether they are located on a dealer lot, en route or at a partner auction facility."
"We do feel that we have taken a giant step in vehicle remarketing," stated Bob Rauschenberg, vice president, Auction Broadcasting Co. "AutoTradeCenter is the industry conduit, effectively filling the void between vehicle turn-in and live sale in the auction lanes. ABC believes there is tremendous opportunity where the technologies meet."
Frank Stephens continued, "Once a vehicle is sold on auction property, the purchasing dealer will have full access to many value-added services or 'VAS' including reconditioning, various repairs and even pre-certification at ADESA auctions. The Honda/Acura dealers have the best of both worlds."
AutoTradeCenter president, Roger Butterwick, declared, "The merging of proven upstream selling with physical marshaling, inspection, and reconditioning services offers both buyer and seller the most comprehensive approach in vehicle remarketing. VIPS has proven its viability with dramatic increases in sales coupled with significant savings.
"This extension now provides an end-to-end solution well beyond an alternative channel."
"The remarketing landscape has changed," commented Harry Beyer, director sales and marketing, SERVNET Auction Group. "Our clients' needs include effective Internet remarketing services. We consider the VIPS extension initiative an historic industry first; one in SERVNET's long-line of groundbreaking implementation of Internet technology.
"We are committed to the aggressive pursuit of the best of remarketing techniques to better serve clients."
"Honda Finance is a long-term and valued Manheim client," stated George Largay, director of communications Manheim Auctions, "and we look forward to continuing to assist them and their dealers in meeting their business objectives."
The Honda Finance VIP Web site, designed and powered by AutoTradeCenter.com, provides the Honda and Acura franchised dealers with a virtual private network for the purchase of approximately 150,000 Honda Finance off-lease vehicles annually.
AutoTradeCenter Remarketing Services completed the national launch of the VIP Web site with 100 percent dealer participation on June 12, 2000. Utilizing the company's state-of-the-art technology and unparalleled support services allows American Honda Finance Corp. to meet its objective of becoming the automotive industry's most successful Internet seller of off-lease vehicles.
About AutoTradeCenter.com
AutoTradeCenter.com is the leading Internet-based "business-to-business" automotive remarketing company.
AutoTradeCenter markets its services to a national dealer base, automobile manufacturers, automotive fleet, lease and rental companies, banks and financial institutions across the United States who can use the company's many remarketing services for more efficient buying, selling and trading.
For more information on AutoTradeCenter.com Inc., please visit www.autotradecenter.com.
About VIPS Host Auctions
The Honda Finance VIPS host auctions are members of the National Auto Auction Association (NAAA), a trade organization for wholesale automobile auctions. The NAAA has more than 300 members worldwide, 260 of which are located in the United States.
About Auction Broadcasting Inc.
Auction Broadcasting Co. currently operates auctions in Indiana, Michigan, Ohio, Florida, Virginia, Tennessee, and Minnesota. The company is committed to featuring cutting-edge technology in all its auction sites, including its Auto Auction Theatre Technology (A2T2) and its Recon Conveyor Ramp.
ABC provides a complete range of advanced facilities that offer value-added services to dealer consignment, factory, financial institutions, fleet/lease and captive finance customers. ABC maintains its headquarters at 1919 S. Post Road in Indianapolis, IN. For more information about ABC, call 317/862-7325 or visit the company's Web site at www.auctionbroadcasting.com.
About ADESA
Headquartered in Indianapolis, ADESA Corp. is a wholly owned subsidiary of ALLETE , a unique and diversified multi-services company. ADESA operates 54 wholesale vehicle auctions strategically located across the United States and Canada.
In addition, the Automotive Services segment of ALLETE operates several other related businesses in the vehicle remarketing industry including salvage and recovery services, Automotive Finance Corp. (AFC) dealer financing, AutoVin Inspection Services, Great Rigs auto transporters, PAR remarketing Services, and ADESA Importation Services (AIS).
About Manheim Auctions
For more than 55 years, Manheim Auctions has set the standard in the wholesale automobile auction industry. Dedicated to helping dealers succeed and to assisting auto manufacturers, fleet and lease companies, banks and other financial institutions in selling their used vehicle inventories more efficiently and cost-effectively, the company as 116 auctions in six countries.
Of those, 86 auctions are located in the United States and Canada. The remainder are in Puerto Rico, France, and the United Kingdom, Australia, and New Zealand. In 2000, the company handled 7.7 million vehicles, valued at $43 billion, at its North American auctions alone.
Although the company's core business is dealer-only wholesale auto auctions, Manheim offers a variety of other value-added services such as: AutoTrader.com, the world's largest used car marketplace on the Internet; DentWizard, the industry leader in paintless dent removal; Manheim Automotive Financial Services (MAGS); and Manheim Logistics Group, which gives manufacturers, banks, and finance companies sub-prime lending institutions, captive finance companies, company-owned fleets, and rental car companies a competitive edge.
About SERVNET
SERVNET Auction Group is comprised of 21 leading independently owned auto auctions located throughout the United States. SERVNET was formed in 1988, and its member auctions work together to enhance the full range of remarketing services they offer, which include reconditioning, transportation, inventory financing, and Internet marketing tools.
With years of experience in the industry and a shared commitment to surpass past levels of achievement, SERVNET auctions are committed to offering superior auction services to all its customers: new and used auto dealers, manufacturers, lease and fleet companies, banks and financial institutions.
Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995.
The company intends that such statements about the company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results