AutoNation's e-Commerce Reaches Record for Speed
19 April 2000
AutoNation's e-Commerce Reaches Record for Speed As More of Its Customers View On-Line Pricing Data
AutoNation Runs Counter to Recent Consumer Reports' Findings
FORT LAUDERDALE, Fla., April 19 AutoNation, Inc.
(NYSE: AN) today announced that its average response time to on-line requests
for vehicle information, test drives and financing improved to 1.2 hours in
March while the no-haggle price quote feature at AutoNationDirect.com was
accessed more than 183,000 times. The quick response times and availability
of on-line price quotes run counter to recent "Consumer Reports'" findings
about the slow and cumbersome nature of many auto-buying web sites.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990406/FLTU003)
The Company cited the April edition of "Consumer Reports," which features
survey results from 1,056 shoppers who tested web sites aimed at vehicle
buyers. Only 35% of the "Consumer Reports" shoppers said they received a
price quote within two days. That's in contrast to the immediate, on-line
accessibility of low, no-haggle price information at AutoNationDirect.com, and
the quick responses to site visitors delivered by AutoNation's more than 900
Internet Sales Guides (ISGs). AutoNation monitors the performance of its
Internet sales force through a proprietary, web-based tool called "Compass"
which tracks e-mails sent to the automotive retailer's more than 400 new
vehicle franchises.
AutoNation Chief Executive Officer Michael J. Jackson said the Company's
response times to on-line customer requests have improved steadily since the
Company entered the e-Commerce business in 1998. Mr. Jackson credits the
sales skills of AutoNation's ISGs, new proprietary technologies that have made
on-line requests manageable and the accessibility of pricing and inventory
data on AutoNationDirect.com. AutoNation's first full year at e-Commerce
(1999) generated Internet-related revenue of more than $1 billion as the
Company sold 46,000 new and used vehicles.
"The 'Consumer Reports'' findings suggest the automotive industry norm for
responding to on-line requests continues to be at least two days," Mr. Jackson
said. "Meanwhile, our best dealers, on average, have begun to respond to on-
line requests in under a half-hour. That's the real standard all of us in the
industry should be shooting for."
The "Consumer Reports'" survey did not include web sites operated by
dealerships, such as those operated by AutoNation, which Mr. Jackson said was
"short-sighted" because dealers are the real "direct" on-line retailers
putting new and used vehicles within mouse clicks of consumers.
"AutoNationDirect.com is more effective because AutoNation is the
retailer," said Mr. Jackson. "None of the web sites reviewed by 'Consumer
Reports' actually have vehicles to sell, which makes none of them 'direct.'
These are referral web sites that act as 'middlemen' and, to date, have been
unable to deliver the kind of seamless web transaction now offered by our
AutoNation dealerships through AutoNationDirect.com."
"Consumer Reports" also found 22% of its e-shoppers were told that they
would have to visit a dealership to get a firm selling price. By contrast,
each vehicle in AutoNationDirect.com's on-line inventory of more than 100,000
vehicles is featured with an easy-to-access, low, no-haggle price. Mr.
Jackson said the fact that AutoNationDirect's price quote feature was accessed
more than 183,000 times last month speaks to the power of having such data
available on-line.
"What's the point of shopping on-line if you can't get the information you
need to make a buying decision?" Mr. Jackson asked. "Consumers want to know
the price of a vehicle, and the data we're seeing suggests they're
increasingly taking advantage of that information on AutoNationDirect.com."
Mr. Jackson believes publications such as "Consumer Reports" have failed
to include web sites operated by dealerships in their reviews of automotive e-
Commerce because of conventional wisdom that suggests the best on-line
automotive shopping solutions are those that avoid bricks-and-mortar dealers.
"That just doesn't make sense," Mr. Jackson said. "Consumers need to know
there are very good dealers who are recognizing the power of the Internet. In
the end, these dealers, along with AutoNation, will be the ones who will make
the on-line shopping experience a seamless transition into the showroom."
About AutoNation, Inc.
AutoNation, Inc. is America's largest automotive retailer, on and off the
Internet, operating more than 400 new vehicle franchises in 19 states and more
than 200 web sites. The Company's revenue in 1999 totaled more than
$20 billion, making it a Fortune 100 company. AutoNation expects its
Internet-related revenue will reach $1.5 billion this year.
Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied in such forward-looking statements. Additional
discussion of factors that could cause actual results to differ materially
from management's projections, forecasts, estimates and expectations is
contained in the Company's SEC filings.