Navidec and Avis Europe Finalize Joint Venture Agreement to Sell Used Cars Online
11 April 2000
Navidec and Avis Europe Finalize Joint Venture Agreement to Sell Used Cars Online
GREENWOOD VILLAGE, Colo., April 10 Avis Europe plc, the
leading car rental company in Europe, Africa, the Middle East and Asia, and
Navidec Inc. , a leading-edge e-business solutions and services
provider, have signed the final agreement to form a joint venture that will
sell used cars over the Internet in Europe.
The new company, YourAutoChoice.com, will initially base its headquarters
in Chiswick, London. Avis Europe plc will hold 65 percent ownership of the
newly formed company, and Navidec will own 35 percent.
After launching the first comprehensive online service for buying used
vehicles in the United Kingdom later this year, the new joint venture intends
to expand throughout major European markets
YourAutoChoice.com will generate revenues, in part, through sales
commissions paid to the company by Avis. Navidec will achieve additional
revenues by providing consulting and development services through its
e-solutions division, as well as from equity sharing in YourAutoChoice.com.
Avis selected Navidec Inc. because of the unique systems the U.S. company
has developed with its subsidiary, Driveoff.com, to support consumers
purchasing used vehicles entirely online. Driveoff.com enables consumers to
complete and track the entire vehicle transaction online, including research,
car selection and financing. The joint venture will deploy this capability
for the used vehicle market in Europe. The initial inventory will draw from
the Avis fleet, however, the venture will be inviting additional parties to
become suppliers.
YourAutoChoice.com has also signed a Letter of Intent to work with
Eurofleet to provide a car fulfilment service for delivery of cars to
customers.
As Europe's leading car rental company, Avis Europe purchases around
200,000 cars per year from more than 17 manufacturers. While approximately 80
percent of cars can be contractually sold back to manufacturers, the new joint
venture provides an attractive channel to market for some of the remaining 20
percent.
"We are pleased to be rapidly progressing the joint venture with Navidec
and are on track to bring a superior used car sales service to market later
this year," commented Mark McCafferty, chief executive, Avis Europe. "The
initiative forms part of our wider strategy to fully exploit 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 disposal processes."
Ralph Armijo, president and chief executive officer of Navidec, added:
"Navidec has created and successfully deployed a robust and sophisticated
technology that transforms the current online business model for selling
automobiles through the Internet. Refining our proprietary e-solution for use
in the European used car market is consistent with our stated goal of
obtaining the maximum leverage from our portfolio of tested and accepted
applications and solutions. Teaming with Avis, who already holds a dominant
position with its strong European network and market expertise, represents a
significant market opportunity for Navidec and allows each partner to apply
our respective capabilities and create a commanding force in the emerging
online vehicle services market in Europe."
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 e-business 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 e-businesses. In addition, Navidec develops reusable software modules,
packaged Internet solutions and complete e-business models.
Contacts:
Avis Europe plc
Mark McCafferty, Chief Executive Tel: +4401344 426644
Chris Cowan, Finance Director Tel: +4401344 426644
YourAutoChoice.com
Paul Tomlin, CEO Tel: +4402089872634
Angela Sinclair CFO Tel: +4402089872634
Financial Dynamics
Nicola Marsden Tel: +44020 7831 3113
Navidec Inc.
Scott Phillips, Phillips
& Associates Tel: 312 943 8858
Steven Canup, Financial Relations
Board Tel: 310 442 0559