Navidec and Avis Europe Form Joint Venture to Sell Used Cars Online
24 February 2000
Navidec and Avis Europe Form Joint Venture to Sell Used Cars Online
Combination of Extensive Avis Network and Systems Expertise Behind Navidec's
Driveoff.com Subsidiary Promises to Reshape Used Car Market Throughout Europe
GREENWOOD VILLAGE, Colo., Feb. 24 -- Avis Europe plc, the
leading car rental company in Europe, Africa, the Middle East and Asia, and
Navidec Inc. , a leading-edge eBusiness solutions and services
provider, today announced plans to form a joint venture to sell used
automobiles over the Internet throughout Europe.
Under a memorandum of understanding signed by the two companies, Avis
Europe plc will hold 65 percent ownership of the newly formed company, and
Navidec will own 35 percent. The company is expected to have initial capital
of $10 million.
The new joint venture will launch a comprehensive online used car buying
service in the United Kingdom later this year and will eventually expand
throughout major European markets.
Avis selected Navidec Inc. because of the unique systems developed with
its subsidiary Driveoff.com to support consumers purchasing new vehicles
entirely on-line. DriveOff.com enables consumers to complete and track the
entire vehicle transaction online, including research, automobile selection
and financing. This capability will now be deployed with Avis for the used
car market in Europe. Initial inventory will be drawn from the Avis fleet;
however, additional parties will also be invited to become suppliers to this
business.
As Europe's leading car rental company, Avis Europe purchases around
200,000 cars per year from over 17 manufacturers. While approximately 80
percent of cars purchased by Avis are sold back to manufacturers, the new
joint venture provides a new channel to sell the remaining 20 percent.
Commenting on the initiative, Mark McCafferty, Avis Europe's chief
executive said: "I am delighted to announce the link-up with Navidec, whose
developed systems' strength will allow us to bring a superior used car sales
service to market quickly. The initiative forms part of our wider strategy to
exploit fully the opportunities from the growth in use of the internet and
e-commerce, both as a distribution channel for car rental services and also as
a means for developing more efficient vehicle acquisition and disposal
processes."
Ralph Armijo, president and chief executive officer of Navidec, explained
that the European joint venture is a natural outgrowth of Navidec's successes
in the U.S.
"Through our incubation of DriveOff.com, we already have made a tremendous
investment in the development of a proven business model for successfully
marketing automobiles online. Combining Avis' European network and market
knowledge with Navidec's systems expertise will create a strong force in the
emerging on-line vehicle services market in Europe," Mr. Armijo said.
About Avis Europe, plc
Avis Europe is the leading car rental company across Europe, Africa, the
Middle East and Asia. It serves more than seven million customers a year
through a network of over 2,700 locations in over 112 countries.
About Navidec Inc.
Navidec Inc. is a leading provider and incubator of
innovative eBusiness solutions and services. Using its proprietary NPact
process, Navidec defines, builds and manages Internet, intranet and extranet
solutions that enable its clients to transform their traditional businesses
into eBusiness. In addition, Navidec develops reusable software modules,
packaged Internet solutions and complete eBusiness models, including
DriveOff.com Inc. DriveOff.com empowers consumers to complete their entire
auto purchase transaction through a network of retail and co-branded web
sites. Navidec's corporate web site is http://www.navidec.com. For more
information contact Navidec Inc. at 303-222-1000.
Media Contacts: for Avis Europe plc, Mark McCafferty, Chief Executive, or
Chris Cowan, Finance Director, both at Tel: 01344-426644, or Nicola Marsden,
Financial Dynamics, Tel: 020-7831-3113; or for Navidec Inc., Scott Phillips,
Phillips & Associates, Tel: 312-943-8858, or Steven Canup, Financial Relations
Board, Tel: 310-442-0559.
All statements in this press release, other than historical facts, are
forward looking statements. These statements are based on certain assumptions
and analyses made by Navidec in light of its experience and its perception of
historical trends, current conditions, expected future developments and other
factors it believes are appropriate under the circumstances. Such statements
are subject to a number of risks and uncertainties, including general and
economic business conditions, competition from other online services, market
acceptance of its online solutions and other risk factors indicated from time
to time in Navidec's filings with the Securities and Exchange Commission.
Those filings are available online at http://www.freeedgar.com