AutoTradeCenter Announces Intent to Transfer Ownership of Land-Based Operations to Strategic Partners
19 December 2000
AutoTradeCenter Announces Intent to Transfer Ownership of Land-Based Operations to Strategic Partners
Business Editors/High-Tech WritersSCOTTSDALE, Ariz--Dec. 19, 2000--AutoTradeCenter (OTCBB: AUTC) Tuesday announced that it has signed a letter of intent to transfer majority ownership in its land-based operations, known as Auto Network Group, to strategic partners controlled by former officers and founders of the company.
AutoTradeCenter will retain a minority interest in certain of these operations.
"We have determined that our company's best path to maximum shareholder value is the remarketing of off-lease and program vehicles via the Internet," stated Roger L. Butterwick, president of AutoTradeCenter, "generating a healthy 70-plus percent gross margin, as opposed to our land-based operations, operating on less than 5 percent (gross margin).
"Accordingly, our board of directors has approved management's recommendation and fully supports the company's concentration on Internet remarketing development.
"We believe the transfer of ownership of our land-based operations, while maintaining a minority interest and strategic alliance with its owners, provides AutoTradeCenter the best of both worlds. It frees up development capital and limits our liability, while giving ATC the flexibility to develop broader Internet B2B vehicle remarketing applications.
"Whereas, the new owners of Auto Network Group become clients of ATC and plan for us assist them in listing, selling, and purchasing their inventory on the Internet."
These transactions are subject to, but not limited to, completion of due diligence and the signing of definitive agreements.
About AutoTradeCenter: AutoTradeCenter.com (ATC) is the leading Internet-based "business-to-business" automotive remarketing company.
On its web site, http://www.autotradecenter.com/, the company markets its services to automobile manufacturers, captive finance companies, lease and rental companies, and financial institutions across the United States who can use the site's many features for more efficient buying, selling and trading.
ATC powers the American Honda Finance Corp.'s Vehicle Inter-Dealer Purchase System "VIPS" utilizing Internet technology and remarketing services.
For more information on AutoTradeCenter.com Inc., please visit http://www.autotradecenter.com/ or contact Public Relations at lseegan@autotradecenter.com.