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Volvo and ADP Partner To Give Dealers High Return On Investment

18 October 1999

Volvo and ADP Partner To Give Dealers High Return On Investment

    HOFFMAN ESTATES, Ill.--Oct. 18, 1999

Volvo signs up ADP(R) as exclusive provider
of Volvo's 'Owner Target System'

    The Dealer Services Group of Automatic Data Processing, Inc. , a leading provider of integrated business solutions, today announced the renewal of its national contract to provide Volvo Cars with its official Owner Target System service reminder program. Phil Cabot, Manager Aftersales Business for Volvo, said: "We decided to renew our national "Owner Target System" service reminder program because of the outstanding results that we have achieved over the last several years with ADP. Our dealers have received, on average, $200 in repair business for every dollar spent on this program in the last two years. The response rate has been about 50% and customers responding to the reminders have spent, on average, 17% more per repair order than the average customer."
    Cabot said that Volvo's Owner Target System integrates service reminder letters, informative reports and personalized coupon mailers to help dealers improve the profitability of their service department. Service reminders are personalized for each customer and vehicle and are precisely timed to arrive just when important maintenance is due. With each visit, sophisticated software recalculates mileage for the next letter so that high mileage drivers receive reminders sooner and more often than low mileage drivers.
    "One of the key capabilities that ADP brings to this program is its ability to produce high quality printed materials in house," Cabot continued. "These materials not only function as service reminders but also do their part in carrying the Volvo brand message. The program extends well beyond reminders in that the dealers can do on-demand mailings to highlight special offerings and regions can pool their forces to produce newsletters. Besides the immediate revenue that the program has generated, we believe that this is an excellent way to build lasting relationships with our customers."

    Ford Motor Company completed the purchase of Volvo Cars in March 1999. Volvo Cars is part of Ford Motor Company's Premier Automotive Group, which also includes Aston Martin, Jaguar and Lincoln. Volvo is one of three companies to achieve the highest score in J. D. Power's 1999 Sales Satisfaction Study 2SM, a measure of how customers view their automotive retailer in terms of overall sales satisfaction. Volvo's commitment to safety has been an intrinsic part of the company since it was established and people who purchase a Volvo simply take it for granted that they are buying one of the world's safest cars.

    ADP Dealer Services Group provides turnkey systems to more than 18,000 auto and truck dealers throughout the United States, Canada, Europe, Asia and Latin America. ADP Dealer Services Group is the third largest business unit of Automatic Data Processing, Inc. ADP, with over $5 billion in annual revenues and more than 450,000 clients, is one of the largest independent computing services firms in the world. More information about ADP and ADP Dealer Services Group is available via the Internet at www.adp.com or by calling 847-397-1700.

    ADP is a registered trademark of ADP of North America, Inc.