203 New Dealers Sign-up On The First Day for Parts.com Free 12-Month Trial of StoreFront
8 December 2000
203 New Dealers Sign-up On The First Day for Parts.com Free 12-Month Trial of StoreFront
SANFORD, Fla.--Dec. 8, 2000--Parts.com, Inc. (OTC BB:MIRM), a marketplace and software solutions provider for the automotive parts industry, launched an aggressive nationwide campaign of its new TradeMotion Storefront technology to the country's 22,000 automotive dealers.Parts.com is implementing a rapid deployment of its platform in order to be the nation's largest software provider in the localized e-distribution, e-procurement space. The company, by eliminating multiple barriers to entry, has built a national distribution network that truly allows for just-in-time auto parts delivery. Dealerships across the country will supplement the existing parts.com marketplace as silver suppliers. The company will also provide these suppliers with a 12-month subscription to TradeMotion Storefront. Storefront is a private-branded web site for dealerships to enhance their product offering and sell parts under their own brand name. This marketing model mirrors the successful programs offered by Microsoft (Internet Explorer) and America Online.
TradeMotion Storefront offers value for buyers, sellers and parts.com:
| -- | Eliminates barriers to entry and provides incentives to migrate from telephone/fax to the Internet |
| -- | Rapid implementation of our "just-in-time" model |
| -- | Reduced cycle times for insurance, repair centers, fleets and dealers |
| -- | Decreased repair time for service and collision centers results in increased turnover and profits |
| -- | Protects local dealer brand while maintaining customer loyalty |
| -- | Enhanced market penetration which enables partners to reach new customers with new products and services (i.e. tools, accessories and aftermarket.) |
RESPONSE TO GM, FORD, CHRYSLER, AND BELL & HOWELL
"Yesterday's announcement by General Motors, Ford, Daimler Chrysler, and Bell & Howell that they would build a web portal to bring value to the dealers, distributors and garages validates the existing parts.com business model as the preeminent B2B model in the industry," stated Mr. Lucas. "Gone is the speculation surrounding the validity of the parts.com business model. Surprisingly, Ford turned this exact same model down not once, but twice when it was presented to some of their senior executives in Detroit. Saturn, a division of General Motors, has neither rejected or accepted our recent proposal; and we have had several meetings with Bell & Howell; this appears a bit coincidental."
Mr. Lucas continued: "We knew that the big three would ultimately come to embrace this form of technical mimicry. Fortunately for us, the relationships between the manufacturers and the dealerships has deteriorated over the years. Now, with this assault upon the dealerships remaining bastion of profitability, the parts and service area, we fully expect the use of our free software to give the leverage to dealers that they have always sought, but could never design. I am very interested to see how our competition plans to rollout a subscription and transaction-based model, when our software solution is free to dealerships, garages and collisions repair centers. Combined with order flow from the fleet, insurance industry commercial sales, Parts.com has raised the bar for any company considering to compete in this space.
"I do agree with the comments of GM's VP of Parts and Service Operations, John Smith that 'approximately 50% of dealer's profits come from parts and services.' This has been the driving metric to the parts.com business model from its inception.
"This announcement creates a win-win-win situation for parts.com, its dealerships and its shareholders. If GM, Ford, and Chrysler choose to work with parts.com, which we welcome, it would solidify our position as the market leader. Some of the nation's largest aftermarket retailers and wholesalers have expressed excitement and have conveyed in writing their interest in having access to dealership commercial sales, which helps to further solidify our position in the market and creates great value to our partners. Finally, if parts.com is granted a patent, which application was filed with the United States Patent and Trademark Office in November of 1999, we will have an opportunity to seek damages from those companies who infringe upon that patent. This is truly an early holiday present for the parts.com shareholders," concluded Mr. Lucas.
About Parts.com
Parts.com, based in Sanford, provides business-to-business e-commerce software solutions for the auto parts industry and other verticals. Parts.com's TradeMotion Solutions creates value for participants throughout the supply chain, including manufacturers, distributors, dealerships, collision repair shops, garages, recyclers and insurance companies as a result of its unique, direct business model which offers a number of efficiencies and opportunities throughout the supply chain.
This announcement contains "forward looking statements." Words "anticipate," "believe," "estimate," "expect," and other similar expressions as they relate to the Company and its management are intended to identify such forward-looking statements. Although the Company and its management believe that the statements contained in this announcement are reasonable, it can give no assurances that such statements will prove correct. Factors that could affect the occurrence of events or results discussed herein are included with those mentioned in the Company's filings with the Securities and Exchange Commission. Microsoft, Internet Explorer and America Online are registered Trademarks.