Newgen Launches Ultimate Service; Newgen Management Services Will Run Parts and Service Departments
15 October 1999
Newgen Launches Ultimate Service; Newgen Management Services Will Run Parts and Service Departments
SAN DIEGO--Oct. 15, 1999--Newgen Results Corporation, the leading provider of customer relationship management products and services to the service sector of the U.S. retail automotive industry, announced the launch and formation of its Newgen Management Services, Inc. subsidiary.Branded Ultimate Service(TM), Newgen will manage the service and parts department of auto dealerships using its vast knowledge and expertise to improve a dealership's profitability, sales growth, customer satisfaction, and employee satisfaction. Newgen will receive a monthly fee for its management services as well as a share of the improvement in the profits of the service and parts departments.
After a successful pilot program in San Diego, Newgen is launching this service nationally, securing a second contract in New York.
Gerald L. Benowitz, CEO of Newgen Results Corporation, said, "As we have stated, our goal is to enhance the consumer's experience at a dealership while also increasing a dealership's profits. This new subsidiary is another milestone in Newgen's strategy of touching every aspect of the vehicle ownership cycle."
Benowitz continued, "We view this as a win/win for both the dealer and Newgen because we believe there is tremendous opportunity to assist the dealer by providing support with this new program as well an utilizing Newgen's core RESULTS program. Our immediate goal over the next year is to build on the two regions we are announcing today, San Diego and New York."
After spending over a year in development of its Ultimate Service(TM) process, Newgen took over the management of the service and parts departments of the San Diego Auto Collection six months ago. The success of this program confirmed the need for this type of service and Newgen's ability to deliver tangible results.
Ed Witt, CEO of the San Diego Auto Collection, said, "I am delighted with the progress that has been made. At the Auto Collection we are trying to differentiate ourselves through exceptional service for our guests. Even though I am much more familiar with the service department than the average dealer, I have never been able to get it to the level I have wanted on my own. With the help of Newgen we are so proud of our service department that we have been featuring it in our television advertising. At the same time, we have been achieving record profits. It has been a win for the customer, the dealership and Newgen."
Even before the official launch of Newgen Management Services, Newgen was successful in securing its second contract with Rockland Lincoln Mercury, in West Nyack, New York, which signed a five-year agreement. The dealership will also utilize Newgen's core RESULTS program, and its new products, Service Reservations, Customer Satisfaction and Database Mining products and services.
Wayne Ford, the dealer principal at Rockland Lincoln Mercury, said, "I am extremely excited about the program. This was exactly what I was looking for and Newgen came with the whole package -- the people, the processes and the tools. I am looking forward to a long and beneficial relationship."
Newgen is utilizing some of its most seasoned and capable staff in this new venture. Les Silver, in addition to his role of Executive Vice President and President of Newgen Consulting Services, has been appointed President of this new subsidiary. David Boyle has assumed the role of Vice President of Sales and Marketing and Wayne Hawkins is Vice President of Operations.
Todd Harding and Mike Fitzgerald have also been transferred from Newgen's Consulting Division and will play key senior management roles.
"This is an exceptional opportunity," Silver remarked. "We will provide an entirely new set of career opportunities for Service and Parts professionals in the auto industry. In the same way that the Marriott Corporation has defined excellence in the hospitality industry, we will do the same thing in the auto industry."
About Newgen Results Corporation
Newgen is a database management and technology leader in the service arena of the automotive industry. The company provides owner loyalty and fixed operation solutions to automotive dealers and manufacturers.
Newgen's expertise in database marketing and customer retention services combined with customer service and in-depth knowledge of service department operations provides a platform to deliver highly targeted and customized solutions to the automotive community.
Since the beginning of 1996, Newgen has grown its customer base from 177 dealerships to over 2,400 dealerships. The company currently solicits over five million vehicle owners.
Newgen's products and services are designed to attract more vehicle owners, more often to automotive dealerships. This process promotes customer loyalty and increases customer satisfaction with the dealership while driving increased revenue for the dealer. Vehicle owners benefit by knowing that a well-maintained vehicle can enhance vehicle resale values and the overall driving experience.
In addition, this process also provides automotive dealerships the ability to effectively differentiate themselves from their competition through improved parts and service operations. For more information, call 800-7NEWGEN or visit Newgen's web site at www.ngresults.com.
This news release contains certain forward-looking statements that involve risks and uncertainties, including statements about new product features, the benefits of new and existing products and the timing for commercial launch of new products being offered by Newgen. Such statements are only predictions and the company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include, but are not limited to risks related to market acceptance of Newgen's new products, Newgen's ability to implement Ultimate Service(TM), rapidly changing product requirements, and the introduction of new products by competitors of the company. These factors and others are more fully discussed under the heading "Risk Factors" and elsewhere in Newgen's Registration Statement on Form S-1 (No. 333-62703), as filed with the Securities and Exchange Commission.