DaimlerChrysler Endorses The Cobalt Group to Operate Web Sites
2 May 2000
DaimlerChrysler Endorses The Cobalt Group to Operate Web Sites For Chrysler, Jeep(R) and Dodge Five Star Dealers Nationwide
Multi-Year Deal Marks Significant Commitment to Expanding Online Capabilities
AUBURN HILLS, Mich. and SEATTLE, May 2 DaimlerChrysler
Corporation today launched a significant e-commerce initiative by choosing The
Cobalt Group, Inc. (Nasdaq: CBLT), a leading provider of Internet-based
business-to-business services to the automotive industry, as its partner for
dealer Web site development and management.
Cobalt will build custom Web sites for more than 2,100 Chrysler, Jeep(R)
and Dodge Five Star Dealers and integrate them with DaimlerChrysler's
corporate Web site and central database. This seamless Internet presence will
provide car buyers online resources for current pricing, incentives, new and
used car inventories and more. Dealers will benefit from Cobalt's state-of-
the-art Web development, as well as advanced marketing and customer
relationship management capabilities.
The partnership developed out of a successful pilot program conducted by
Cobalt over the last several months with DaimlerChrysler Five Star dealers in
the Baltimore/Washington area. "During this pilot program, Cobalt clearly
demonstrated to us why they are a leader in transactional Web site design and
why they are the right partner to take this program to the national level,"
said Gary E. Dilts, DaimlerChrysler Corporation's Vice President - E-Connect
Platform.
"This venture with DaimlerChrysler demonstrates how automobile
manufacturers and dealers can speak with one voice to the customer," said John
Holt, President and CEO of The Cobalt Group. "We have long believed that
dealers and manufacturers working together have the resources, assets, skills
and experience to be the dominant players in an Internet-based economy. We
believe the DaimlerChrysler Five Star Dealer program will set a new benchmark
for manufacturer-dealer cooperation."
The standard dealer Web software and services package will provide the
fundamental Web development and business management tools a dealer needs to
establish dynamic e-commerce operations. Advanced features will include a
variety of custom pages, searchable new and used vehicle databases, e-mail
response and management tools, a custom domain name and site traffic reporting
tools.
"The proliferation of car shopping sites has created a lot of confusion
and inaccuracy in the marketplace," said Dilts. "A potential customer could
visit a dozen dot-com buying services looking for the price of a particular
vehicle and get a dozen different figures. Moreover, third-party sites are
often not in a position to accurately handle inventory, finance, insurance and
used car transactions. Our integrated dealer Web sites will ensure that all
customers get the same information and that it's correct, up to date, and
delivered with the highest level of customer satisfaction."
The DaimlerChrysler Five Star Dealer program recognizes dealerships that
operate at the highest levels of customer satisfaction by employing trained
and satisfied people and utilizing consistent, customer-focused sales, service
and parts processes. In addition, Five Star dealers engage in comprehensive
customer follow up to determine satisfaction with the sales and service
experience.
Apart from the Five Star Dealer Web site development partnership, Cobalt
already provides extensive data polling and analysis services to
DaimlerChrysler dealers through its PartsVoice and IntegraLink divisions.
Some of this data, including new and used vehicle inventory data and customer
service records, will be leveraged to create new value-added applications for
the Five Star Dealer Web sites.
The initial term of the new agreement is through the year 2002, with an
additional term through 2004. DaimlerChrysler will receive an equity interest
in The Cobalt Group in the form of common stock and common stock purchase
warrants.
About DaimlerChrysler
DaimlerChrysler Corporation is the business unit of DaimlerChrysler AG
(NYSE: DCX) responsible for the design, engineering, manufacture and sale of
the Chrysler, Jeep(R) and Dodge brands of cars and trucks.
For further information, please visit DaimlerChrysler at
http://www.daimlerchrysler.com or http://www.media.daimlerchrysler.com
About the Cobalt Group
The Cobalt Group(TM), based in Seattle, is a leading provider of Internet-
based products and services for the automotive industry. Cobalt helps
dealers, dealer groups and automobile manufacturers harness the power of the
Internet to realize new efficiencies, win new prospects and better serve their
customers.
With approximately 5,600 dealer Web site clients, over 10,000 dealers
using its parts locating system, and relationships with 16 automotive
manufacturers and more than 50 of the 100 largest dealer groups in the United
States, Cobalt is one of the leading technology companies serving the
automotive industry.
Cobalt operates MotorPlace.com (http://www.MotorPlace.com ), a business-to-
business vertical portal for the automotive industry; DealerNet(R)
(http://www.dealernet.com ), one of the best-known automotive destination sites on
the Web; and PartsVoice(R) (http://www.partsvoice.com ), a leading OEM auto parts
locating and data management service. The Cobalt Group also owns IntegraLink
Corporation, the auto industry's premier provider of advanced data collection
and reporting services. Cobalt offers Web site services that are endorsed by
the National Automobile Dealers Association.
For more information, please visit The Cobalt Group at http://www.cobaltgroup.com