Newgen to Provide Service for Pilot of 20 Ford Dealerships
18 February 2000
Newgen Results Corporation's Subsidiary, Newgen Management Services, to Provide Ultimate Service for Initial Pilot of 20 Ford Dealerships
SAN DIEGO--Feb. 18, 2000--Newgen Results Corp. , a leading provider of Customer Relationship Management (CRM) technology for the service sector of the U.S. retail automotive industry, today announced that Newgen Management Services (NMS), a subsidiary of Newgen Results Corp., has reached an agreement to pilot the Ultimate Service, for Ford dealerships.Under the terms of the agreement, NMS will provide service management for a pilot of 20 dealerships for a two year term. The company's usual contracts are three to five years in duration.
Gerald Benowitz, CEO of Newgen Results Corp., stated, "This is a significant milestone for Newgen Management Services. Here it is only the middle of February and our capacity for 2000 is virtually sold out. Our relationship with Ford Dealer Development will facilitate our goals for the future growth of Ultimate Service through the solicitation of non-pilot Ford dealerships. It also allows Newgen to provide other products and services such as Results Reminders, Reservations, Connections and e-Services. We have received preferred vendor status from Ford Dealer Development for all of these products."
George Frame, director of Ford Dealer Development, stated, "We are excited to introduce the Ultimate Service product to our dealerships. Service is not only a major source of dealership revenue, it is critical to building long term relationships with customers. Newgen's expertise in customer relationship management and service operations will help Ford dealers enhance the total vehicle ownership experience for its customers. I look forward to a long and profitable relationship with Newgen."
In recent news, Randall Reed, owner of Planet Ford in Texas, signed a three-year agreement to deploy Ultimate Service within its dealerships, and John Calcott, owner of several dealerships in the Midwest, signed a five-year agreement. Other dealers using Ultimate Service include the San Diego Auto Collection and Rockland Lincoln Mercury in West Nyack, N.Y.
Newgen Management Services
Formed in October 1999, Newgen Results Corp.'s new Management Services subsidiary offers to manage the service and parts department of auto dealerships via its Ultimate Service product. Ultimate Service, launched nationally in October, uses Newgen's vast knowledge and expertise in the automotive industry to improve a dealership's profitability, sales growth, customer satisfaction, and employee satisfaction.
Newgen Management Services receives a monthly management fee plus a share of the improvements in the profits of the service and parts departments of the dealership. Newgen Management Services plans to roll out additional products to complement Ultimate Service over the next eighteen months.
Newgen Results Corp.
Newgen Results Corp. is a leading provider of customer-relationship management technology that combines expertise in database marketing and customer retention with an in-depth knowledge of service department operations to deliver highly targeted and customized solutions to the automotive community.
Newgen currently supports 5,500 auto dealerships nationwide and maintains relationships with leading automotive companies and dealer groups, including Ford, Mitsubishi, Volvo, Audi, Acura, BMW, Volkswagen, Jaguar, Kia, Infiniti plus AutoNation and CarMax Auto Superstores. For more information, call 800/7NEWGEN or visit www.ngresults.com.
This news release contains certain forward-looking statements that involve risks and uncertainties, including statements about the benefits of new relationships with automobile manufacturers, the benefits of new and existing products, such as Ultimate Service, 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 the Results, Ultimate Service and other programs by dealers, the ability of the company to satisfy dealers, the ability of the company to satisfy Ford Motor Company, the ability of the company to enter into agreements with pilot dealerships, 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) and in the company's most recently filed quarterly report on form 10-Q, each as filed with the Securities and Exchange Commission.