Chrome Data's Business-to-Business Digital Automotive Network
8 February 1999
Chrome Data Launches Revolutionary Business-to-Business Digital Automotive Network
OREGON CITY, Ore.--Feb. 8, 1999--Financing and Insurance Organizations Can Now
Directly Participate in Online Vehicle Transactions
Chrome Data Corporation, a leading provider of data and information tools for the automotive industry, today introduced its business-to-business, members-only digital automotive network.
Chrome.com is uniquely designed to facilitate vehicle transactions between consumers and new car dealers through auto-buying assistance programs provided by consumer-centric organizations such as credit unions, banks, insurance companies and Internet portals.
The Chrome.com digital automotive network allows credit unions, banks, insurance companies -- or virtually any organization with a web site -- an inexpensive means to directly participate in online automotive transactions. Chrome's network enables participating organizations to secure insurance policies, revenue and financing that might otherwise be lost with the exclusive relationships found on many Internet auto-buying/brokering services. Other consumer-centric organizations, such as corporations' HR departments, online media sites and professional organizations, can also sign up for Chrome.com to provide a low-cost, value-added, loyalty-building service to their constituents. At the same time Chrome.com fulfills demand-side businesses needs, it increases dealers' Internet sales volumes by providing qualified buyers, not just tire kickers, and also lessens the dealers' workload by ensuring that requests for vehicles are accurately configured and ready to order.
Over 15 million cars will be sold in 1999 and according to Steve Goodall, president of J.D. Power and Associates, two-thirds of auto buyers will be using the Internet by 2000 to research and purchase vehicles. Last year, new car loans issued by credit unions only increased one percent, which was significantly lower than the market expected. Online car-buying services that offer exclusive relationships with select financing companies were partially to blame, according to industry observers. "The Internet offers revolutionary capabilities to leverage information and make credit unions more competitive and members' lives easier and more confident," says Tom Kazinci, manger of information services at Paragon Services Inc., a CUSO attached to Paragon Federal Credit Union that services more than 35 credit unions. "For us, Chrome.com breaks down web barriers like price-of-entry and provides absolutely accurate data. Our credit unions can offer online auto buying services to increase the number of loans issued, while giving members the power of the Internet and big wins with convenience, selection and cost. A win for our members is a win for us," said Kazinci.
By building a secure web-based business-to-business communications network, Chrome Data has established a common vehicle language between the ordering and selling processes -- making it easier and more efficient for buyers and dealers alike. "It's not another automotive electronic commerce system that simply sells cars," says Ross Macdonald, Chrome Data's director of marketing. "Chrome.com provides a powerful tool enabling businesses to ramp up Internet revenue from auto-related services, while dealers and professional auto buyers can expand their business geographically and increase Internet lead-to-close ratios. Best of all, Chrome.com lets consumers get the best possible price on new vehicle purchases."
How Chrome.com Works
Chrome.com is a password-protected extranet composed of Web Carbook, an Internet vehicle configurator, and Quote Center, a desktop application and communications module. Demand-side organizations that subscribe to the Chrome.com network frame Web Carbook entirely within their web sites. Through Web Carbook, their end customers have access to all new vehicle makes and models, standard and optional equipment, vehicle pictures and manufacturers' invoice and MSRP pricing. Once consumers select the exact vehicle they're interested in, their quote request is processed through Chrome.com's Quote Center, which organizes customer and vehicle information, selects dealer recipients, transmits the request and receives dealer responses electronically via the Internet.
If consumer-centric organization wants to offer the auto-buying service to its members but doesn't want to select dealers, issue quotes, or arrange the sale, it can use a behind-the-scenes professional auto buyer who uses Chrome.com's Quote Center and Web Carbook for external fulfillment.
Chrome Drives Dealer Volume
Numerous companies have already started using Chrome.com and Web Carbook to configure and distribute consumers' quote requests to dealers and arrange vehicle closings using its national database of more than 20,000 new car dealers. Auto dealers who receive the leads can compare quote requests with their existing inventory, then reply back though Chrome.com with the closest matching vehicle or a special order response and their best price offer. Consumers choose the winning dealer's quote and the closing is arranged between the organization and the dealer.
"For dealers, it's all about the volume and quality of leads, and the cost to generate them and turn them into sales," says Phil Cash, fleet manager of the Phil Long Dealerships. "Chrome.com is the best service yet, because it utilizes the networked aspect of the Internet to drive sheer volume from thousands of demand-side businesses. Since it uses Chrome Data's accurate vehicle information and it is a professional members-only service, the requests for quotes are pre-qualified, allowing us to review and respond to leads with minimal effort and move more inventory at a dramatically lower cost."
Chrome Data's 12-year legacy in the automotive industry is based on the powerful electronic pricing and spec'ing software, PC Carbook. Embraced by more than 5,000 dealers, fleet professionals, financial institutions and other automotive professionals, PC Carbook is widely regarded as the industry standard. In 1997, Chrome Data's customers configured more than 30% of all automobiles sold in America -- $100 billion worth of vehicle sales.
Revenue Model
Chrome Data earns initiation fees for Chrome.com and subscriptions to the necessary tools -- Web Carbook, PC Carbook and Quote Center -- for every business connected with the digital automotive network, including consumer-centric organizations, auto dealers and professional auto buyers. Chrome Data does not grant franchises or share revenue, nor participate in the business of selling, brokering, leasing, or financing vehicles.
About Chrome Data Corporation
Chrome Data pioneered the technology behind electronic vehicle configuration and for the past 12 years has collected, analyzed and enhanced "raw" automotive data from all manufacturers. Chrome's solutions provide information as reliable as dealer invoices, enabling users to configure and order any vehicle with the confidence that the product and price match a car that is either buildable or available in inventory. Chrome Data is based in Oregon City, Ore., and may be reached at 800/936-8906. Company information is available at www.chrome.com.