Is Autobytel in Trouble?

    LONDON, July 20 just-auto.com -- There are growing
concerns over the financial health of Autobytel after the company announced
earlier this week that losses in the quarter ended June 30th will be deeper
than expected.  The economic downturn in the US is being cited as a major
cause, with dealers' marketing budgets being sharply cut back.
    But according to Dave Leggett, managing editor of just-auto.com, we
shouldn't forget the broader picture of flux at the retailing end of the
automotive value chain.  Read his views at
http://www.just-auto.com/editorial_detail.asp?id=70
    Leggett says:  "There remain huge inefficiencies in traditional car
retailing, where up to 30% of the value of a car is expended on sales and
marketing and other retail costs.  Big changes are ahead.  At the moment,
there are massive uncertainties over the eventual role of online selling, the
model that will work best and the role of the dealer."
    He adds:  "I and many others believe that online retailing will play a
central role in the mix of retailing formats in the future.  The value
proposition will inevitably change and consumers look well positioned to
benefit.  But there will certainly be casualties in the industry."

    Read the full article at:
http://www.just-auto.com/editorial_detail.asp?id=70