Ford and Bolt Align for Partnership to Reach the Next Generation
22 November 1999
Ford and Bolt Align for Strategic Partnership to Reach the Next Generation FORD MOTOR COMPANY - EBUSINESS STRATEGY Ford Motor Company - eBusiness Strategy.[KI] DEARBORN, MI USA 11/19/1999
DEARBORN, Nov. 19 -- Ford Motor Company is teaming
up with Bolt Inc., one of the largest teen destinations on the Internet to
develop cars.bolt.com -- a co-branded destination on the Bolt.com website.
Cars.bolt.com will provide Ford with information on the vehicular interests
and needs of more than 3 million teens who visit Bolt.com daily.
(Photo: http://www.newscom.com/cgi-bin/prnh/19991119/DEF019 )
"Ford recognizes the need to reach the next generation of drivers and the
place to do that is online," says Dan Pelson, President and CEO of Bolt, Inc.
"Millions of teenagers reach driving age every year, and this relationship
offers Ford Motor Company the opportunity to connect with this emerging group
at a critical stage."
"This partnership with Bolt enables Ford to better connect and develop an
ongoing dialogue with the Echoboom generation -- the largest cohort group in
history -- who are going to fundamentally change the automotive landscape,"
says Ford Motor Company President and Chief Executive Officer Jac Nasser.
"This is also another element of our totally integrated E business strategy.
We are connecting with consumers through multiple touchpoints, wherever they
are in the physical or virtual world. However, the biggest impact and
benefits of the Internet to both the consumer and shareholder are going to be
in the value chain. We are going to use E business to drive efficiency from
the distribution system through to suppliers to accelerate the transformation
of the company -- consumer focused and shareholder driven."
Cars.bolt.com will provide personalized classified ads, an automotive
dictionary, teen-targeted buyer guides and a Ford-branded design studio with a
drag and drop graphical interface where new car designs can be submitted to
Ford. In addition, the site will contain an interactive driver's education
seminar "Behind the Wheel" where Bolt.com users can prepare for securing their
driver's licenses. Responsible driving and environmentally-safe driving tips
will be updated bi-weekly on the cars.bolt.com site.
Throughout the course of the agreement, Ford will be able to take
advantage of multi-layered market research studies provided by the Bolt Lab,
the business intelligence division of Bolt.com. The agreement also calls for
Ford to provide content and services for the site, including coverage of
NASCAR races, question and answer sessions with Ford engineers, and
sponsorship of the Bolt summer road tour known as the "Power Trip."
The association with Bolt.com is the latest in a string of strategic
electronic commerce initiatives Ford has undertaken this year as it connects
with consumers at every touchpoint, drives e-business throughout the Ford
Motor Company, and continually enhances shareholder value. These initiatives
include the formation of Consumer Connect, the internal organization within
Ford with responsibility for all direct consumer interfaces, on September 15;
a joint venture with Microsoft CarPoint on September 20; the formation, with
Oracle Corporation, of AutoXchange the worlds first online supply chain
network with Oracle on November 2; and a market test with Priceline.com on
November 15.
"Our e-initiatives are totally integrated throughout the entire Ford Motor
Company," explains Brian Kelley, vice president of Ford Motor Company and
president of Ford ConsumerConnect. "Consumers are driving a revolution in
retailing and we are working fast and furiously to be at the forefront of that
revolution. Most importantly, consumers will be the big winners as a result
of all these initiatives."
RECENT FORD MOTOR COMPANY E-BUSINESS INITIATIVES:
* On Nov. 15, Ford Division dealers in Florida began a market test with
Priceline.com to allow Florida residents to use the Internet to name their own
price for a Ford car or truck of their choice on-line. Florida customers who
visit Ford's web site (http://www.ford.com ) can "virtually" shop for the exact car
or truck they want, then have the option to name their own price and payment
method. Priceline.com distributes consumers' purchase offers directly to
local Ford dealerships, beginning with the dealership located closest to the
buyer. The first dealership to accept the offer gets the sale. If dealers
cannot accept the customer's offer, or have the customer's vehicle in a
different color or with similar option packages, dealers can electronically
submit counter-offers to Priceline.com for customer consideration. Each
customer receives a response to his or her offer in just 24 hours. The
Ford/Priceline.com car buying experience is very different from other services
on the Internet because it is the first time that a price named by the
customer and accepted by the dealer online can be honored by a local car
dealership.
* On Nov. 2, Nasser and Oracle Corporation President Ray Lane announced
the formation of the AutoXchange, an automotive e-business integrated supply
chain to be created and run by a newly formed joint venture between Ford and
Oracle. The venture initially will facilitate Ford's $80 billion in annual
purchasing transactions with its more than 30,000 suppliers and $300 billion
extended supply chain.
The two companies will create the world's first automotive online supply
chain network, and the world's largest business-to-business electronic
network. This new online automotive marketplace is expected to dramatically
reduce Ford's purchasing costs and increase its operating efficiencies through
an integrated Internet supply chain system. Further, it will extend Ford's
core business into a virtual e-business enterprise allowing direct connections
of the supply chain to the consumer to reduce Ford's time to market.
* On Sept. 20, Nasser and Microsoft President Steve Ballmer announced
that Ford would become the first partner in a new MSN CarPoint joint venture
to create a simpler, better way for consumers to design and order the vehicle
they want, when they want it. Moreover, the Ford-Microsoft joint venture will
develop 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 vehicle 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.
* On Sept. 15, Ford Motor Company announced the establishment of its new
global enterprise to connect with global consumers. The entity, known as
ConsumerConnect, is responsible for all direct consumer interfaces, working
very closely with Ford's dealer body. Development and marketing of in-vehicle
communications also will be part of this new business unit.
* In January, 1999, Ford became the first automotive manufacturer to
include its family of brands on a single home page, allowing consumers single-
click access to the Aston Martin, Jaguar, Volvo, Lincoln, Mercury, Ford and
Mazda brands.
* Ford.com is a leading automotive destination with more visits than any
manufacturer per month, according to MediaMetrix. Ford.com provides the
consumer with a complete pathway from the shopping experience through the
purchase, use and maintenance of their Ford vehicle. In addition to providing
the customer with easy access to our products, the site also was designed to
meet the needs of investors, media, motor sport enthusiasts and even job
hunters. The website -- http://www.ford.com -- recently was recognized with a CASIE
award and two Silver Invision awards for outstanding web site design.
* Ford Motor Company also was the first OEM to establish exclusive
relationships with Internet community sites. Ford is an exclusive partner of
iVillage, the leading on-line women's site. "These community sites offer us
the opportunity to connect with consumers in their own electronic
neighborhoods, in areas of interest to them," Nasser says.
* Ford was the first automotive manufacturer to take an equity stake in
an all-makes automotive site, Carclub.com. Carclub.com has established an on-
line niche providing unique automotive-related products and services to its
club members.
* Together, these web sites create a unique relationship model in which
the company and dealers are united to serve the consumer; delivering value-
added content and functionality for comparison and purchase of Ford brands,
products and services. While adhering to strict privacy policies and
guidelines, these sites also serve as a platform to harvest robust, real-time
consumer data.