APCO Wins Exclusive Service Contract from Kelley Automotive Grp.
16 April 1998
Automobile Protection Corporation - APCO - Kelley Automotive Group, Inc. To Offer EasyCare Vehicle Service Contracts Exclusively
ATLANTA, April 16 -- Automobile Protection Corporation
(APCO) announced today that it has entered into a two year
exclusive agreement with Kelley Automotive Group, Inc., of Ft. Wayne, Indiana
for Kelley Automotive to offer EasyCare(R) vehicle service contracts to
customers at its dealerships.
Kelley Automotive has 15 dealerships in Indiana, Georgia, Florida and
Oklahoma with Toyota, multiple General Motors and Saab franchises, as well as
stand alone used vehicle sales facilities. Kelley Automotive was ranked as
the 49th largest dealer group by Automotive News for 1996, selling in excess
of 20,000 new and used vehicles annually.
Larry Dorfman, President/CEO of APCO said: "We initiated our relationship
with Kelley Automotive through our motorsports sponsorship activities. Kelley
Racing has two of the most competitive cars in the Indy Racing League (IRL),
on which EasyCare(R) Vehicle Service Contracts will now become an associate
sponsor. We will be providing Kelley Automotive with our full range of
service contract products, together with comprehensive training and
development programs at all of their dealerships. We are pleased that our
reputation for outstanding service, quality products and effective training
continues to attract some of the largest dealership groups to EasyCare(R)."
Tom Kelley, President of Kelley Automotive said, "Although we were
introduced to APCO through our mutual interests in motorsports, this
ultimately had little bearing on our decision to select APCO. We conducted
extensive due diligence and concluded that APCO could provide us with the best
products and service in this industry. We are very impressed by their
training and development programs and also have spent significant time
observing their claims adjusting operations. We are anxious to commence the
introduction of EasyCare(R) service contracts into our dealerships."
"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 the Company's products or markets, or
otherwise makes statements about the future, the Company's 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 10-K that has been filed with
the Securities & Exchange Commission in connection with its 1997 year.
APCO, established in 1984, is a leading marketer and administrator of
products and services to automobile and recreational vehicle dealers. The
Company's core business is the marketing and administration of EasyCare(R)
Vehicle Service Contracts and the EasyCare(R) Certified Pre-Owned Vehicle
Merchandising Program. The Company also administers warranty and service
contract products under private labels for financial institutions, an
insurance company and a manufacturer.
SOURCE Automobile Protection Corporation