Lithia Selects bbcn.com's Competitive Purchasing Online Marketplace
28 March 2000
Lithia Motors Selects bbcn.com's Competitive Purchasing Online Marketplace LITHIA AUTOMOTIVE GROUP LOGO Lithia Automotive Group logo. Contact: Betty Whitney, 541-776-6591. (PRNewsFoto)[DM] MEDFORD, OR USA 09/09/1999
MEDFORD, Ore., March 28 Lithia Motors Inc.
today announced that it would use competitive online purchasing at its stores
through bbcn.com, a neutral digital marketplace allowing competitive
purchasing between automotive dealerships and their suppliers.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990909/LITHIALOGO )
By subscribing to the bbcn.com e-procurement site, Lithia stores will be
able to purchase a broad range of products, goods and services. Based on
specific category and product identifications, the site will electronically
notify suppliers of a dealer's purchase inquiry. Suppliers can then
electronically submit a response. The system significantly reduces marketing
costs and increases efficiency for both dealers and suppliers.
"In time, we expect to see substantial savings by using bbcn.com's
procurement site," stated Sid DeBoer, Chairman and CEO of Lithia Motors. "We
are continually looking for ways to cut costs and improve our operating model.
By using a system that places our major suppliers within a competitive
framework, we should see better pricing and greater savings across the board."
"We're not surprised that one of the most forward-thinking public dealer
groups recognizes the value of the e-procurement system developed by
bbcn.com," said Jim Muckle, executive vice president of bbcn.com. "Because the
company is so progressive and in tune with expense reduction, executives
quickly embraced the bbcn.com concept -- modernizing purchasing and managing
processes in dealerships."
Lithia Motors, Inc. is one of the leading automotive retailers in the
United States, with 101 franchises in California, Oregon, Washington, Nevada,
Colorado and Idaho. Lithia sells 25 brands of new vehicles at 45 stores and
over the Internet through "Lithia.com - America's Car & Truck Store." Lithia
also sells used vehicles; arranges finance, warranty, and credit insurance
contracts; and provides vehicles parts, maintenance, and repair services at
all of its locations. Lithia retailed 52,485 new and used vehicles in 1999.
Lithia's current annualized revenue run rate, including all completed
acquisitions, is over $1.5 billion.
bbcn.com delivers the only comprehensive digital marketplace providing a
real-time auction, exchange and direct e-procurement solution to automotive
dealerships and their suppliers. bbcn.com provides a secure, efficient and
centralized on-line process designed to measurably reduce expenses and
increase net profits for all participants. At bbcn.com, users may harness the
power of a vertical portal that effectively matches buyers and sellers within
the automotive dealership industry.
This press release includes forward looking statements, which management
believes are a benefit to shareholders. These statements are necessarily
subject to risk and uncertainty and actual results could differ materially due
to certain risk factors, including without limitation economic conditions,
acquisition risk factors and others set forth from time to time in the
company's filings with the SEC. Specific risks included in this press release
include, cost savings, expense reductions, increased net profits and revenue
run rate.
CONTACT: Jeff DeBoer, Senior Vice President and Chief Financial Officer
of Lithia Motors Inc., 541-776-6868, or invest@lithia.com; or
Michelle Herskowitz of Pierpont Communications, Inc., 713-627-2223, ext. 116,
or michelleh@piercom.com, for bbcn.com.