Republic Industries Launches Far-Reaching Customer Initiatives
24 September 1998
Republic Industries Launches Far-Reaching Customer Initiatives in Denver
DENVER--Sept. 23, 1998--One-Price, No-Haggle Shopping Under "John Elway" Name
Dealerships to Feature AutoNation USA Sub-Brand
Republic Industries, Inc. today announced that it has launched an innovative customer satisfaction and retention initiative at all of its Denver-area franchised vehicle dealerships. The company said it intends to apply the results of this initiative in its dealerships nationwide, which together comprise the largest automotive retailing network in America.
The first phase of the initiative, expected to begin this December, will include the conversion of all of Republic's Denver-area dealerships to a one-best-price, no haggle selling environment and the re-branding of all of the dealerships under a single name: "John Elway." In addition, the dealerships will include the "AutoNation USA" sub-brand. This will be the first time that Republic uses the AutoNation USA name to sub-brand any of its new vehicle dealerships. Prior to the Denver initiative, the name was used solely to brand Republic's chain of AutoNation USA used car megastores. The dealership name changes are subject to manufacturer approvals.
Going forward, the Denver initiative will feature the launch of a package of membership-style benefits for customers of the John Elway, AutoNation USA dealerships. These benefits will leverage the scale and scope of Republic's regional and national operations, offering customers of John Elway, AutoNation USA access to a wide range of automotive retailing, service and financing options, along with vehicle rental discounts and other related products and services. In the latter stages of the initiative, the company will introduce an integrated e-commerce shopping alternative and a comprehensive customer service center. The company will also overhaul its approach to after-sale support, including a renewed emphasis on superior service.
"The primary objective of our Denver initiative is to simplify the buying process for our customers while adding significant value to the ownership experience," said Steven R. Berrard, President and Co-Chief Executive Officer of Republic. "In Denver, and eventually the nation, we want to re-define our customers automotive experience from top to bottom. By targeting the products, processes and services that customers want, and by delivering them in a no-haggle, one-best-price environment, we can dramatically change the way America perceives the automotive retail industry. And it starts here in Denver."
Mr. Berrard said Republic's Denver strategy is an outgrowth of research that shows that consumers want the automotive retail industry to change. "Consumers are tired of the high pressure, low satisfaction sales model. They want the low pressure, high satisfaction model. They want a simple, less time-consuming sales process. They want paperwork that's easy to understand. They want service that's done right the first time. They want a dealer who will stand behind the product, no matter where they travel. And the majority of consumers want a no-haggle, one-price selling environment--as long as they can be sure that the one price is also a competitive price."
"We're committed to being the low price leader in the Denver market," Mr. Berrard added.
Mr. Berrard added, "From the beginning, Republic's intention has been to develop a critical mass in key markets and to then leverage our size and scope of operations to benefit the customer. The Denver initiative gives us an opportunity to apply some of our best practices in a large and growing market. We intend to see what works and what doesn't and we'll be applying this learning to our operations around the country."
Backing up Republic's commitment to the Denver initiative will be a large investment in employee training. New sales and service training programs begin today throughout Republic's Denver dealerships and continue for several months. The company also plans a comprehensive advertising program in support of the launch of "John Elway, AutoNation USA."
Commenting on the choice of Denver, Mr. Berrard said, "We selected Denver as the place to test some of these innovations because of the expressed desire and commitment of Republic's entire Denver retail team to be the first in America to collaborate on such an initiative. Republic's Denver dealers comprise some of the largest and best dealer groups in one of the country's fastest growing markets. And of course, the opportunity to leverage the Elway name in Denver is an obvious benefit."
Republic dealerships in Denver include the following automotive groups and manufacturer brand names: Chesrown Chevrolet; Chesrown Collision Center; Chesrown Friendly Ford; Chesrown Southwest Dodge; Marshall Ford; Marshall Lincoln Mercury; Emich Jeep Chrysler Plymouth; Emich Olds GMC West; Emich Chrysler Plymouth; Emich Dodge; Emich Subaru; Emich South; Emich Lincoln Mercury; John Elway Motors; John Elway Honda; John Elway Nissan; John Elway Ford; John Elway Nissan Arapahoe; and John Elway Toyota.
Fred Emich, President of the Emich Automotive Group, has been appointed Vice President of Republic's Denver District. Emich opened his first dealership in Denver in 1975 and has been a leader in the market ever since. Todd Maul will serve as second District Vice President and brings 20 years of experience in the Denver market.
Commenting on the creation of "John Elway, AutoNation USA" Emich said, "All of the Republic dealerships in Denver are committed to working together under a single brand name to streamline the buying process and to deliver an unparalleled package of ownership benefits. We realize that the eyes of the automotive retailing industry will now be focused on us and we anticipate that the competition will be working hard to undermine our efforts. But we're convinced that by focusing solely on the consumer, everyone wins. We're ready to make this work and we're excited that the people of Denver will be among the first to benefit from this new approach to auto retailing."
Denver Broncos quarterback John Elway noted, "We are very excited to be leading this charge. Denver is a great car market and these initiatives will help us enhance the car-buying process."
Republic Industries, Inc. is the world's largest automotive retailer. The company owns automotive retail groups in 18 states and owns and operates 38 AutoNation USA used vehicle megastores in 12 states. Republic also owns National Car Rental, Alamo Rent-A-Car and CarTemps USA. The company is headquartered in Fort Lauderdale, Florida.