Auto Data Network Launches Dealership Insurance Services That Support Legislative Changes in the UK Aftersales Market
TUNBRIDGE WELLS, England--Sept. 30, 2003--"New insurance services launched for auto dealerships which fully address recent regulatory changes." |
Auto Data Network Inc. (OTCBB: ADNW), a provider of software and real-time data services to the automotive industry, today announced the launch of a new range of insurance services for UK auto dealerships by its subsidiary, County Services.
Vehicle insurance is a lucrative sales opportunity for auto dealerships. For a typical dealership, insurance, when taken with financial services, contributes 35% of profits from just 2% of revenues.
These new services provide dealership solutions that are fully compliant with newly introduced legislation by the European Union to regulate the selling of insurance products. Under these new regulations, dealerships wishing to sell insurance products to their customers must be registered with, and authorised by, the Financial Services Authority.
To assist customers in adhering to these legislative changes, the services include comprehensive compliance and training. Furthermore, the services provide access to an extensive range of motor insurance products, which allow dealership customers to select and cost from a wider range of packages.
Auto Data Network's Chairman and CEO, Chris Glover, commented, "Insurance and financial services products are of great commercial value to our dealership customers. Our specialist compliance knowledge, training and software services address the significant industry challenges imposed by these new regulations." Mr. Glover further added, "Our leadership and investment in tackling these real, commercial issues will enable our customers to freely prospect this valuable area of the automotive market."
Auto Data Network is a group of established companies which provide software products and services to the automotive industry. The company's main customer base is the auto dealership marketplace. This marketplace consists of approximately 78,000 dealers in North America and 92,000 dealers in Europe. The company estimates that this represents a $15 billion market for Software and Services specifically for auto dealerships. The company supplies a suite of software solutions and services that enable dealerships to run their businesses more efficiently whilst achieving considerable cost savings. The majority of the company's current solutions are focused on serving the aftermarket and finance areas of dealerships. These areas are of particular importance as the aftermarket business is responsible for 48% of a dealerships profit from 12% of their overall revenue. The second most profitable area is vehicle finance and insurance this area contributes 35% of profits from 2% of revenues.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings with the Securities and Exchange Commission (SEC).