Ford shows their idea of the future of auto retailing
20 September 1999
Ford allows Consumers to place orders directly with factory
New Venture to Create Online Build-to-Order Car-Buying Service for Consumers;
Build-to-Order System to Be Open to All Manufacturers
SAN FRANCISCO, Sept. 20 Microsoft Corp.
President Steve Ballmer and Ford Motor Co. President and CEO Jac Nasser
announced today that Ford Motor Co. is the first partner in a
proposed new MSN(TM) CarPoint(TM) joint venture to create a simpler, better
way for consumers to design and order the car they want, when they want it.
Ballmer and Nasser said the new venture will transform the way consumers buy
cars on the Internet.
At a press conference in San Francisco today, Ford and Microsoft also
announced that they are developing the first online Build-to-Order system to
link consumer order configurations directly with automotive manufacturers'
supply and delivery systems. This will allow consumers to order any model of
car to their exact specifications on CarPoint, Ford.com and other automotive
destination sites, receive immediate feedback on availability, and schedule
delivery and service at their local dealership.
"Microsoft and Ford share a vision that buying the exact car you want can
be simple, fun and efficient," Ballmer said. "CarPoint is going to change the
way cars are bought and sold with technology that brings together
manufacturers and dealers to deliver the services and cars consumers want."
"The consumer is driving a revolution in automotive retailing, and Ford
intends to be at the forefront of that revolution," Nasser said. "We share
Microsoft's consumer focus and believe that this joint venture will lead to
enhanced car-buying and customer experience, helping to build a more positive
relationship between consumers and dealers."
The new CarPoint entity will bring together Microsoft, Ford and other key
leaders in the automotive industry in a joint venture. Microsoft will hold
the majority stake. The joint venture aims to provide opportunities to
manufacturers and dealers in the automotive industry by offering consumers an
open online marketplace where they can find the exact car they want. Lindsay
Sparks, general manager of CarPoint for the past three years, will serve as
CEO of the new CarPoint entity.
CarPoint has a history of successful business relationships. For example,
through its relationship with The Reynolds and Reynolds Co., CarPoint has
built a successful channel with more than 3,500 dealers that participate in
the CarPoint New Car Buying Service and the Used Car Marketplace. Reynolds
and Reynolds will continue to work with CarPoint to deliver on the vision of
providing consumers with a better car-buying experience.
With the planned creation of the online Build-to-Order system,
manufacturers will also be able to build strong relationships with consumers
by offering greater access to pre- or custom-built cars, which will then be
fulfilled through a dealership.
Providing Consumers With Build-to-Order Cars
The new venture builds on the reputation CarPoint has for providing
consumers with comprehensive, impartial information on all makes and models.
The planned Build-to-Order system will combine existing CarPoint car-buying,
shopping and ownership tools with a service that allows consumers to configure
and order the car they really want. Once a consumer has decided which car is
right for him or her, CarPoint technology will locate an existing car, whether
it is on a dealer's lot or on a transporter headed across country, or will
place an order for a new custom car to be built at the factory and delivered
through the consumer's local dealership.
The Build-to-Order System will provide consumers with access to real-time
information throughout the buying process, including vehicle availability,
anticipated delivery schedules and notification of delivery plans. The
technology will also enable manufacturers and dealers to get instant,
simultaneous online views of the status of the order until the car makes it
into the hands of consumers.
Key Technologies in New Online Automotive Marketplace
With Ford, the new CarPoint plans to feature the automotive industry's
first online Build-to-Order system that links Internet car-ordering services
to the back-end systems of an automotive manufacturer. This will allow
companies such as Ford to better manage the order-fulfillment process,
streamlining production and inventory management through the supply chain.
The underlying technology for integrating CarPoint systems with
manufacturer and dealer systems to provide Build-to-Order capabilities will
include the Microsoft(R) Windows(R) 2000 operating system, Microsoft SQL
Server(TM) 7.0 and the BizTalk(TM) Server for XML-based business-to-business
e-commerce. Microsoft and its associates involved in this leading automotive
marketplace also plan to utilize the BizTalk Framework and the BizTalk.Org
open library to manage definitions for Extensible Markup Language (XML)
business documents that will accelerate the standardization of electronic
ordering for the automotive industry.
Another example of CarPoint technology is DealerPoint, an online
lead-management system designed to help dealers manage and quickly respond to
Internet prospects, reduce dealership lot time, and monitor online sales
performance. DealerPoint technology will be licensed to Ford Motor Co.
dealerships.
Ford and Microsoft Relationship
Ford has been an important Microsoft customer for more than 10 years and
has rolled out the Windows operating system and Microsoft Office family of
products on desktops companywide. Ford is part of the Microsoft Office
Advisory Council and has also participated in the Rapid Deployment Program for
Office 2000.
As part of its drive to become the world's leading consumer company
providing automotive products and services, Ford Motor Co. announced on
Sept. 15 a new global enterprise that will be responsible for all direct
consumer interfaces and work closely with Ford's body of dealerships. The
consumer-connect enterprise will expand Ford's relationship with Microsoft and
other technology companies and utilize its specialist skills to make Ford the
leading consumer company providing automotive products and services through
its online and other channels.
About CarPoint
CarPoint is a comprehensive consumer-oriented automotive Web site offering
users complete car-buying and car-care information on all makes and models.
Launched on the Internet in July 1996, CarPoint gives users fast, convenient
access to detailed specifications and pricing information, reviews and advice
from leading automotive writers, interactive decision-management tools, a
new- and used-car buying service, and personalized maintenance and recall
information. According to Media Metrix, CarPoint has been the No. 1
car-buying Web site for eight out of the past nine months.
About Ford Motor Co.
Ford Motor Co. is the world's largest producer of trucks and the
second-largest producer of cars and trucks combined, marketing and selling
approximately 7 million vehicles globally through its seven brands last year.
Ford Motor Co. employs approximately 345,000 people in plants, offices and
laboratories to serve consumers in more than 200 countries and territories.
Ford Motor Co. is also one of the largest providers of financial services
worldwide through Ford Credit and related businesses. Ford Motor Co. provides
consumers and commercial financial services through 2,400 branches in
33 countries.
About Microsoft
Founded in 1975, Microsoft is the worldwide leader in
software for personal computers. The company offers a wide range of products
and services for business and personal use, each designed with the mission of
making it easier and more enjoyable for people to take advantage of the full
power of personal computing every day.
The information contained in this document relates to prereleased product
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information may not accurately describe or reflect the product when first
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