CarPrices.com, Selectica and JATO Dynamics Enter Agreement to Deliver Online Car Configuration Package
13 December 1999
CarPrices.com, Selectica and JATO Dynamics Enter Agreement to Deliver Online Car Configuration Package
SAN DIEGO--Dec. 13, 1999--Complete Online Car Configuration Solution Will Offer Consumers Broader Choices, Let Them Make Better Comparisons When Shopping for
Cars Online
CarPrices.com, Selectica Inc. and JATO Dynamics Inc., today jointly announced a strategic partnership to develop and market Select-A-Car, the automotive industry's most advanced, pre-packaged, online car configuration system.
CarPrices.com is one of the Internet's most-trafficked automotive Web sites, Selectica is a leading provider of Internet selling systems, and JATO is one of the world's leading suppliers of automotive industry information. Under the terms of the agreement, the three companies will jointly develop Select-A-Car and license the solution to automotive manufacturers, dealer networks, Internet portals and other auto-focused e-businesses.
A complete turnkey solution, Select-A-Car will allow auto businesses to deploy quickly and easily an online system that encourages consumers to purchase cars and trucks by interactively helping them find the make and model that best meets their needs. It combines:
| -- | Selectica's award-winning Internet selling system, which features needs analysis, product configuration, pricing, quoting and comparison shopping capabilities |
| -- | JATO's complete database of manufacturer specifications and options for each car model, and |
| -- | CarPrices.com's colorful, consumer-friendly interface |
The result is an interactive experience that guides consumers dynamically and accurately to the make, model and specific features they desire -- while ensuring that buyers are presented only with cars and trucks that actually can be delivered.
Enhanced New Car Price War System First Deployment of Select-A-Car
Initially, Select-A-Car will add a stunning visual dimension to CarPrices.com's successful New Car Price War system, where car dealers bid on the buyer's business, and the buyer is not obliged to submit an opening or "blind" bid to dealers. Furthermore, Select-A-Car will enable a New Car Price War across brands, as users will be able to find all vehicles which meet desired criteria regardless of manufacturer, then submit bid requests to dealers who compete for their business.
The New Car Price War requires dealers to respond to a buyer's selected configuration with a bid that includes a binding price. The only way a dealer safely can quote a binding price is by having an exact car configuration. Select-A-Car delivers that level of detail quickly and accurately, while in the process making car configuration interactive and fun for the buyer.
Select-A-Car Helps Consumers Make the Right Choice
Select-a-Car combines comprehensive information and technology to guide buyers through complex car specifications -- with more than one million configurations possible for some models -- and help them select the available car or truck that best meets their needs.
Using Select-A-Car, for example, a buyer will be able to specify a body type and price range. Behind the scenes, the needs analysis and configuration functions of Selectica ACE will tap into the JATO database of manufacturer specifications and configuration options for virtually every car sold in America, then present the available car models that meet the buyer's guidelines. From there, Select-A-Car's comparison shopping feature will allow the buyer to compare and contrast similar models' features and prices.
Select-A-Car will allow the buyer to customize the car of his or her choice, including such features and options as paint, upholstery, seats, stereo and advanced braking systems. Select-A-Car's visual display will put a picture of the selected car on the screen, and as colors and options are chosen, the image changes automatically so the buyer can see the car step-by-step as it's being configured. At the same time, the highly accurate Selectica constraint engine will ensure the buyer only configures cars that actually can be built and sold. Once the car is configured, Select-A-Car will save the configuration as a quote that the buyer can print and electronically send to the appropriate dealer or e-business.
"Our agreement with Selectica and JATO has huge ramifications for everyone in automotive e-commerce," said Ahmed Ghouri, CarPrices.com's co-founder and vice president. "These businesses don't want to spend millions of dollars to build a complete configuration and pricing system on their own. By making our comprehensive, packaged solution widely available, we're providing the industry with a valuable tool, while giving consumers more power than ever before. It's a major step forward."
"We're proud to join our interactive ACE Internet selling system technology with the dynamic and user-friendly front-end of CarPrices.com and comprehensive automotive database from JATO Dynamics to deliver a complete system that will set new standards for automotive e-commerce," said Raj Jaswa, president and CEO of Selectica. "With Select-A-Car, automotive manufacturers, dealers and e-businesses will have unprecedented capabilities for leveraging the Web to improve their sales and marketing effectiveness."
"The combination of JATO's data, Selectica's world-class configuration technology, and CarPrices.com's vision for automotive marketing on the Web creates new opportunities for all three companies," said David Mingle, CEO of JATO's North American operations, "With JATO's international data capabilities, Selectica and CarPrices.com's Select-A-Car will be poised for global rollout following launch in the U.S."
Select-A-Car to Support Three Key Auto Market Segments
Select-A-Car will be tailored to support three key market segments: dealers, automotive e-businesses and manufacturers. Dealers will deploy Select-A-Car on their Web sites, allowing buyers to configure the car of their choice online and then enter their name and contact information to request a price quote. Similarly, automotive e-businesses will allow buyers on the Internet to configure a car and then pass the information to a dealer or financial institution to complete the sale. Finally, Select-A-Car will support product design and marketing efforts by giving manufacturers a tool for comparing their vehicles' features with those of other automakers.
About Selectica Inc. (www.selectica.com)
Selectica Inc. develops and markets the industry's leading Internet Selling System software, which compels buyers to complete online purchases through a dynamic, non-intrusive virtual sales assistant. The 100% Java, open architecture of Selectica's ACE product suite delivers unmatched performance for handling the most complex purchases -- even during peak use -- and proven reliability to ensure that e-businesses keep their online doors open to buyers every minute of every day.
Key customers include Aspect, BMW, 3Com, Fireman's Fund, Fujitsu, Hewlett-Packard, and Samsung Electronics Corp. Selectica is a privately held company headquartered in San Jose, Calif.
About JATO Dynamics Inc. (www.jato.com)
JATO Dynamics is one of the world's leading suppliers of information about the automotive market place to the automotive industry. Founded in 1984, JATO's customer base has grown to include almost every vehicle manufacturer in the world. Additionally, JATO has over 250 corporate customers in 27 countries exploiting information gathered in the 40 markets where JATO is active. JATO researches and manages information on specifications, prices, options, registrations and sales volumes, customer incentives and a wide range of other automotive market information. The company's U.S. corporate offices are located in Troy, Mich.
About CarPrices.com (www.carprices.com)
In San Diego, CarPrices.com launched the Internet's first and only New Car Price War, in which multiple dealers compete for a buyer's business with exact, binding, out-the-door prices (a national rollout is planned in January). The New Car Price War represents the ultimate auction-model for new car purchases, a market which exceeds $400 billion per year in the U.S. alone.
The company's Price War has had unprecedented consumer and dealer participation, as it drives down prices for buyers and increases sales efficiency for dealers. As of December 1999, nearly 80% of all new car dealers in San Diego city and county were participating in the program, with nearly 50% of users buying a vehicle through the program in its first month of inception.
CarPrices.com's strategy is to allow its Price War quickly to occur across brands: Users will be able to find all vehicles (regardless of make) which meet desired criteria, and allow dealers to compete for the purchase. For the first time, it will enable both dealers and manufacturers simultaneously to compete for the value-conscious buyer, enabling unprecedented pricing competition in the industry.
CarPrices.com is the fastest growing automotive e-commerce Web site in the world, attracting more than 1 million visitors per month and responsible for more than $2 million in new car sales per day.
For more information about CarPrices.com, contact Emile Barrios at The Townsend Agency, 858/457-4888 ext. 113. E-mail: emileb@townsendagency.com.