UnitedAuto, Penske, CarsDirect.com Form Alliance
16 May 2000
UnitedAuto Group, Penske Automotive Group, CarsDirect.com Form Alliance for Vehicle Sourcing, Expedited Fulfillment
DETROIT AND LOS ANGELES--May 16, 2000--in Leading On-line Auto Provider
Roger Penske to Join CarsDirect.com Board of Directors
UnitedAuto Group Inc. , a leading publicly-traded automobile retailer, and Penske Automotive Group Inc. today announced a strategic alliance with CarsDirect.com, a leading direct on-line automotive provider.
In major parts of the United States, the alliance is expected to enhance the on-line based sale, distribution and service of vehicles by UnitedAuto and the Penske Automotive Group, which have combined annual revenues of more than $5 billion. The alliance enables CarsDirect.com to serve its customers locally and more conveniently with UnitedAuto's and Penske Automotive Group's expedited vehicle fulfillment and comprehensive customer service capabilities. The organizations intend to jointly build an automated transaction system that links the companies in a streamlined and ultimately "real time" vehicle sourcing and fulfillment solution.
As part of a $17 million investment in CarsDirect.com by the two dealer groups and other associated companies, Roger S. Penske, chairman of UnitedAuto, will join CarsDirect.com's board of directors. Penske stated: "It is clear that consumers, dealers and OEMs are embracing the Internet as a viable channel for automotive sales, distribution and service. A growing number of our customers require an automotive e-commerce solution to meet their automotive needs. This solution adds value to our business model and meets the customer service needs of the OEMs. After extensive research, our team concluded that the best overall approach is a strategic partnership with CarsDirect.com. The relationship with CarsDirect.com now firmly positions UnitedAuto and Penske Automotive Group as prominent forces in the on-line consumer automotive sector."
"This is yet another significant step in achieving our goal of working collectively with all members of the automotive industry to provide fresh options, attractive choices and an unparalleled Internet car buying experience for the consumer," said Bob Brisco, CEO of CarsDirect.com. "The alliance enhances our business' scalability, which is critical as we expand our customer base."
"We are building a closely integrated transaction system to address our increased volumes," said Brisco. "Our strategic alliance enables us to marry our front-end technology, proven over the last year through our reliable, scalable Web site, with UnitedAuto's and Penske Automotive Group's world-class, customer-focused delivery and service abilities."
Penske Automotive Group's president, Greg Penske, added: "We believe that our association with CarsDirect.com will prove to be an attractive source of new vehicle and related parts and service volume. In addition, we believe this alliance will provide the best experience for the consumer while maintaining brand integrity, which is crucial to our OEM partners."