General Motors & Universo Online Forge Strategic Alliance

General Motors & Universo Online (UOL) Forge Strategic Alliance In Latin America

The first regional alliance of its kind connects GM, the company with the highest revenues in e-commerce transactions in Latin America, with UOL, the region's largest Internet service provider

Detroit, Mich., Miami, Fla. and Sao Paulo, Brazil-- General Motors, the world's largest automaker, and Universo Online (UOL), Latin America's leading Internet service provider, have signed a strategic marketing alliance. This is the first Internet alliance implemented by General Motors on a regional basis.

In a union of "bricks" and "clicks," the GM-UOL partnership will bridge the companies' online and offline marketing strategies, enabling them to reach an unprecedented number of Latin American customers.

Among the joint initiatives being implemented by GM and UOL are premium positioning for Chevrolet in the UOL portal, advertising, co-branded micro sites, promotions such as sweepstakes featuring vehicles, sponsorships of key channels including UOL Carro, the auto channel, content exchange, and direct e-marketing campaigns.

The companies are also working on offline marketing initiatives so that both UOL and Chevrolet customers will observe brand associations and interact seamlessly with them via both traditional and Internet experiences.

The companies plan to leverage GM's more than 75 years of experience in Latin America, a powerful network of nearly 1,000 dealers, and the premium status of the leading automotive brand, Chevrolet -- as well as UOL's growing customer base of 14.6 million registered members. UOL enjoys the highest number of Internet users in the region.

"UOL's dominance of the important Brazilian Internet market, where it reaches more than 80% of all Internet users, will provide significant exposure for GM's brands and vehicle portfolio," said Fritz Henderson, GM group vice president and president GM Latin America, Africa & Middle East. "UOL's penetration rate is higher than comparable Internet portal sites anywhere in the world. But beyond the figures, the functionality of UOL's sites, as well as quality in content, is a strength that we will leverage in growing GM's Internet strategies throughout the region," Henderson said.

"Latin America has become a GM breeding ground for new ideas and Internet benchmarks. GM employees and dealers are embracing the Internet to enhance our competitive advantage in the Region. By striking the first pan-regional alliance with an innovative partner like UOL, GM Latin America demonstrates great leadership in forging key online partnerships," said Mark Hogan, GM group vice president and president of e-GM, the company's Internet business unit.

"This agreement is a landmark for the Internet business development throughout Latin America," said Luis Frias, chairman and CEO of UOL Inc. "Two leading companies joining efforts to leverage sales using mechanisms that the Internet industry has developed with strong success, allowing them to speak straight out to the customers. The Latin American Internet market is still it its beginnings. This partnership between an innovative blue chip company and a New Economy company can accelerate growth and bring substantial results for both partners," he added.

The GM-UOL alliance complements Internet strategies already being implemented by GM operations in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela. It will be implemented first in Brazil, Argentina and Colombia followed by staggered launches in the rest of the region.

In September 2000, GM launched the first high-volume direct Internet sales model of the automotive world with the introduction of the Chevrolet Celta Internet business model in Brazil.

"Thanks to the success of the Celta and the Celta Internet sales model, GM has become the largest e-commerce company in Latin America with revenues of nearly US$250 million to date," said Walter Wieland, president GM do Brasil. "This regional alliance with UOL underscores GM's aggressive efforts to be the world leader in e-commerce," he added.

Furthermore, GM and UOL will work together in evaluating key metrics stemming from this relationship to better understand the Latin American Internet customer. GM research indicates that more than two-thirds of new vehicle purchase intenders (purchase to be completed within three years), are Internet users and have completed at least one purchase online.

"The overlap of automotive customers and Internet users makes the GM-UOL partnership in Latin America a very promising one," said Fritz Henderson.

"UOL Carros (auto) channel was developed to attend the Internet market," stated Caio Tulio Costa, COO of UOL Brasil and Chief Content Officer of UOL Inc. "This strong tool, sponsored by Chevrolet, attends the requirements of Internet users that aim the ultimate and state-of-the-art destination for the automotive industry in the region."