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e-Business Solution for the Motor Trade Will Cut Costs of Used Cars

26 January 2000

    LONDON, Jan. 26 -- A new internet company, Auto Online, has developed an e-business solution
for the automotive trade which could lower the trading costs of quality used
cars by up to 50 per cent.  With its emphasis on streamlining the de-fleeting
and re-marketing processes, lead times will also be cut.

    Designed as a business-to-business tool for dealers and fleet managers,
Auto Online's initiative provides comprehensive details of de-fleeted cars
online giving the UK's 14,000 dealers a virtual showroom 24 hours a day
seven days a week and offering fleet managers access to the widest audience of
potential buyers nationwide.

    The Auto Online system is targeted at the nearly new market of cars less
than four years old consisting of approximately three million vehicles per
year.  The UK's annual vehicle market comprises eight million used cars and
has a value estimated at 40 billion pounds.  By comparison, the size of the
new car market last year was 2.2 million vehicles.

    Clients are provided with a high level of support at the company's brand
new headquarters in Letchworth, Hertfordshire, which has dedicated interactive
training facilities.  Training can also be provided on-line and at the
dealer's premises.

    Managing director, Kamal Bengougam, says that Auto Online is much more
than a simple means of generating leads via a website and that is has been
developed to provide a complete solution; one that will challenge the
traditional methods of trading cars which has long viewed by the industry as
time consuming, inefficient and costly:  "From physical inspection to delivery
we aim to offer a streamlined and cost-efficient vehicle re-marketing solution
backed by a strong customer service team."

    Auto Online combines the powers of the internet, providing a robust
platform for electronic trading, with a comprehensive range of services.  This
includes a trustworthy and dependable vehicle inspection and evaluation
process; a secure mechanism for payment; reliable transportation and
logistical support, as well as legally binding contracts offering a fair
arbitration system to balance and protect the interests of all parties.

    Backed by individuals, private investors and strategic partners in the
industry, Auto Online is an independent company that has spent two years in
development.  Being autonomous means the company can provide its services to
the whole of the motor trade without restricting itself to any particular
dealership, manufacturing, retailing, finance or insurance group.  Client
screens can be branded and vehicle marques restricted to meet the marketing
requirements of individual clients.

    Business development director, Stuart Devereux, who was national dealer
training manager with Autobytel during its start-up phase in the USA, believes
that the UK car market is being challenged as never before, making the
existing buying and selling processes even more inefficient:  "In truth, an
e-business operation can only be truly successful when you can provide clients
with a more efficient business mechanism as well as reduced costs," he said.

    "For some time now, the wholesale car industry has been looking for a
solution to improve its remarketing efficiency," commented Simon Constantine,
chairman of Auto Online.  "Today, the need for change in the used car market
is particularly relevant as issues such as consolidation among manufacturers,
trade restrictions and the increase in European imports impact on the
profitability of the UK car market."

    "Tested by leasing, rental companies and motor dealerships, Auto Online is
a business whose time has come.  It has the potential to make a significant
contribution to the quality used car market."