Sonic Automotive, Inc. and Greenlight.com Form Strategic Alliance
17 April 2000
Sonic Automotive, Inc. and Greenlight.com Form Strategic Alliance To Serve Internet Car Buyers
CHARLOTTE, N.C., April 17 Sonic Automotive, Inc.
(NYSE: SAH), the nation's second largest auto retailer, announced today that
it has entered into an agreement to market new vehicles through
Greenlight.com, the fastest-growing Internet car buying site. Per the
agreement, Sonic will hold an equity interest in Greenlight.com.
Greenlight.com also has a promotional agreement with Amazon.com (Nasdaq: AMZN)
to introduce Greenlight.com to Amazon.com's more than 17 million experienced
online shoppers.
Mr. Jeffrey C. Rachor, Sonic's Executive Vice President of Retail
Operations stated, "Greenlight.com goes well beyond the referral model. The
Greenlight.com buying experience, which includes the dealer in the purchase
and delivery process, provides consumers with a simple, Internet-enabled
shopping experience and is responsive to both manufacturer and state legal
requirements."
"It's exciting to join with the second largest auto retailer to expand our
network of leading dealership groups," stated Todd Collins, Chief Executive
Officer of Greenlight.com. "The fulfillment capability provided by Sonic
Automotive is a great addition to Greenlight.com's relationship with Asbury
Automotive and the nation's other leading dealers. These leading dealership
groups combined with the 17 million experienced online buyers in Amazon's
customer base will make Greenlight.com the clear leader in the online car
sales industry."
Mr. B. Scott Smith, Sonic's President and Chief Operating Officer, stated,
"Members of our operating and financial team have met with virtually every
'dot-com' in the automobile retail sector. After extensive due diligence, we
believe that Greenlight.com and Sonic Automotive will operate the premier
'Clicks and Mortar' solution for the online automotive retail sector. Our
relationship with Greenlight.com is another example of Sonic's efforts to
exploit all opportunities to generate sales and profits from Business to
Consumer (B2C) Internet applications. Sonic is embracing new technologies to
capture the competitive advantages of Sonic's scale, geographic diversity and
brand diversity."
"We're delighted to partner with Greenlight.com to provide the finest
Online buying experience for the discriminating Internet buyer," said O.
Bruton Smith, Sonic's Chairman and Chief Executive Officer. "We have chosen
Greenlight.com for its track record in bringing committed car buyers to its
dealer partners and its focus on providing the best possible end-to-end
experience for the customer while maintaining the brand integrity of our
manufacturers. Our alliance with Greenlight.com represents a powerful new way
for Sonic dealers to sell more cars to consumers who want to shop online."
About Greenlight.com
Greenlight.com is developing a network of prominent car dealers throughout
the United States who share a common characteristic: a commitment to working
with Greenlight.com to support consumers before, during and after the online
purchase of a new car. Greenlight.com continues to build its network by
recruiting the most customer service-oriented dealers across the United
States.
Greenlight.com was founded in 1999 to bring to new car buying the same
convenience, confidence and simplicity that online shopping has brought to
other consumer goods. Greenlight.com goes well beyond the referral model of
most online auto sites and lets customers actually purchase their new cars
online. Greenlight.com has developed a true click and mortar model --
combining an online buying experience with the nation's strongest network of
local fulfillment and service partners. Greenlight.com simplifies the buying
process by giving consumers low, upfront pricing, the ability to get the exact
car they want, a dedicated live account manager and support from Greenlight's
network of local dealers where and when it is needed.
Greenlight.com is backed by Kleiner Perkins Caufield & Byers, a leading
Silicon Valley venture capital firm, and Asbury Automotive, an automotive
retail industry leader. Greenlight.com has also received a strategic
investment from Amazon.com (Nasdaq: AMZN) and is Amazon.com's exclusive
partner in the new car market. To shop for a car or to get more information
about Greenlight.com, visit the company on the web at
http://www.greenlight.com .
About Sonic Automotive, Inc.
Sonic Automotive, Inc. is the second largest automotive retailer in the
United States operating 172 franchises and 30 collision repair centers in
Alabama, California, Florida, Georgia, Maryland, Nevada, North Carolina, Ohio,
Oklahoma, South Carolina, Tennessee, Texas, and Virginia. Sonic had revenues
of $3.4 billion in 1999, an increase of 109% over 1998. The revenue run rate
is estimated at over $6 billion for 2000. Sonic has experienced nine
consecutive quarters of greater than 50% growth in earnings per share. Sonic
Automotive can be reached on the Web at http://www.sonicautomotive.com .
Included herein are forward-looking statements, including statements with
respect to anticipated revenue and profit growth. There are many factors that
affect management's views about future events and trends of the Company's
business. These factors involve risk and uncertainties that could cause
actual results or trends to differ materially from management's view,
including without limitation economic conditions, risks associated with
acquisitions and the risk factors set forth from time to time in the Company's
recent filings with the Securities and Exchange Commission.
Sonic Automotive, Inc.:
Contact: Theodore M. Wright, Chief Financial Officer of Sonic Automotive,
Inc. (704) 532-3347.
J. Todd Atenhan, Investor Relations of Sonic Automotive, Inc.
(888) 766-4218.
Val Holley-Dennis, Media Relations of Sonic Automotive, Inc.
(704) 660-3424.
Internet Address: http://www.sonicautomotive.com
Greenlight.com:
Contact: Jenni Schwai Media Relations for Greenlight.com, (415) 616-6054
E-mail: jschwai@redwhistle.com
Greenlight.com Platinum Management, (800) 568-0073
Email: dealers@greenlight.com
Web site: http://www.greenlight.com/dealers