APCO Enters into Exclusive Service Contract Agreement With Sonic Automotive
5 December 1997
Automobile Protection Corporation - APCO - Enters into Exclusive Service Contract Agreement With Sonic Automotive, Inc.
ATLANTA, Dec. 5 -- Automobile Protection Corporation
(APCO) and Sonic Automotive, Inc. , have entered
into an exclusive agreement, whereby Sonic will offer APCO's EasyCare(R)
service contracts to purchasers of vehicles from Sonic's twenty franchised
dealerships and franchises which may be acquired in the future.
APCO President/CEO Larry I. Dorfman stated: "We are delighted to enter
into this agreement with Sonic, one of the fastest expanding dealership
chains. APCO was introduced to the management of Sonic through our mutual
NASCAR motor sports interests and relationship with Speedway Motorsports, Inc.
. We have nurtured our relationship with the management of Sonic
for two years and have been providing service contracts at three of their
stores for the past year. We are excited to have an opportunity to provide
Sonic with service contracts at their other stores and the stores which they
may acquire in the future. Sonic will become APCO's single largest dealership
group once all the dealerships are installed and trained in selling
EasyCare(R) products. In addition to providing service contracts, APCO will
provide the Sonic organization with extensive finance and insurance sales
training. We are pleased that Sonic selected APCO as their single source
vendor for service contracts and dealership training based on our performance
during the past year and our ability to offer the highest quality service
contracts, training and claims processing in the industry."
Mr. Dorfman also commented: "This relationship is another win for APCO
and our EasyCare(R) philosophy of providing the highest level of quality and
service in the industry. As the dealership business consolidates, customer
service will become more important and APCO is perfectly positioned to fill
this need in the market place. Dealers everywhere are starting to recognize
EasyCare(R) as the premier brand in the industry."
Mr. Scott Smith, President of Sonic Automotive, Inc., stated: "I have
developed a lot of respect for APCO's way of doing business during the past
year, which clearly places the expectations of our customers first. As one of
the leading automotive groups, Sonic Automotive needs to have high quality
finance and insurance products for its customers. We believe that APCO can
provide these products competitively and with the level of training we will
require."
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: To the extent that this news release discusses financial
projections, information or expectations about our products or markets, or
otherwise makes statements about the future, our statements are forward-
looking and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from the statements made. These
factors include, but are not limited to, the competitive nature of the
industry in which some competitors have significantly greater financial
resources and name recognition than the Company, the availability of insurance
coverage at competitive rates and of insurance funds to make claims payments,
the Company's dependence on independent sales representatives, dealers and a
major automobile manufacturer, the cyclical nature of the automobile industry,
and other risks detailed in the Company's Form 1O-K that has been flied with
the Securities & Exchange Commission in connection with its 1996 year.
APCO, established in 1984, is a leading marketer and administrator of
products and services to automobile dealers which are designed to enhance
customer satisfaction and dealership profitability. The Company's core
business is the marketing and administration of the EasyCare(R) Certified Pre-
Owned Vehicle Merchandising Program and Vehicle Service Contracts to
automobile and recreational vehicle dealers.
SOURCE Automobile Protection Corporation