Ford Motor Company Takes Lead in Driver Training - Acquires Stake in Top Driver
4 January 2001
Ford Motor Company Takes Lead in Driver Training - Acquires Stake in Top Driver
DEARBORN, Mich., Jan. 4 Ford Motor Company is
making U.S. automotive history with the acquisition of an equity stake in Top
Driver, Inc., the nation's leading provider of integrated driver training and
education. Ford is the only automotive manufacturer in the U.S. to have such
an alliance.
"It is Ford Motor Company's goal to become the world's leading provider of
automotive products and services. With the acquisition of an interest in Top
Driver, we'll be able to move beyond building and servicing safe vehicles to
teaching drivers safe driving techniques," says James C. Schroer, Ford Motor
Company vice president of Global Marketing. "It's consistent with our
Trustmark to demonstrate our commitment to the safety of all drivers."
Schroer continues, "Last winter, Ford began researching companies in the
United States with which to create an alliance in driver education, and we
chose Top Driver because we were impressed with the management team and their
strategy. We determined that Top Driver is the best company in the U.S.
driver training industry. This investment complements Ford's 1999 acquisition
of Young Drivers, Canada's leading driver education company, and positions
Ford Motor Company to become a dominant provider of driver training in North
America."
Top Driver Chief Executive Officer Sebastian Giordano elaborates, "When I
approached Ford early last year to discuss a strategic relationship it turns
out they were simultaneously evaluating Top Driver. The timing was right, but
more importantly, our goals are aligned -- to develop a long-term, trusting
relationship with all drivers and provide, among other things, the most
comprehensive driver training available. Together, we want to improve the
quality of life as it relates to driver safety."
Top Driver provides instruction for all drivers and vehicle types,
including novice, corporate fleet, commercial driver's license, specialty
vehicle, handicapped and seniors. In addition to behind-the-wheel
instruction, Top Driver offers computer-based and instructor-led training in
its classrooms and at-home training via videotape, CD-ROM, and the Internet in
2001.
Top Driver instructors also will attend special Ford Motor Company new
model training workshops to learn about the latest safety innovations and how
to communicate with drivers about safety technology as well as safe driving
techniques.
Ford Marketing Program Manager Paul Szatkowski says, "The relationship
with Top Driver complements our commitment to safety. Our efforts have
expanded from building in safety 'hardware' innovations such as airbags and
antilock brakes to focusing directly on the 'software,' or training to provide
the skills necessary for driving safely."
Szatkowski continues, "One of our goals was to address the need in the
marketplace for standardization. The driver training market is characterized
by a high degree of fragmentation and the Top Driver-Ford Motor Company
alliance provides a strong, unified presence in the industry that will benefit
consumers."
Currently, Top Driver has driver training centers in eight states:
Connecticut, Florida, Indiana, Maryland, Michigan, New Jersey, New York and
Ohio. Plans are to expand its classroom locations to 20 states within three
years. The curriculum will be expanded as well; for example, during the first
quarter of 2001, Top Driver will add a course specifically on driving Sport
Utility Vehicles (SUV). The course will cover differences between SUVs and
cars, and how those differences translate into different handling
characteristics.
In addition, Top Driver has the largest library of video and CD-ROM driver
training content to address the driver training needs of individuals,
corporate fleets and commercial drivers in all 50 states.
Ford expects its alliance with Top Driver to offer tremendous synergies.
Expansion plans will be accelerated. Customers will be trained using up-to-
date Ford vehicles such as the Ford Focus, Escape and Taurus, and, in the
future, other Ford Motor Company brands. People who complete a novice
training course will be eligible for special deals on Ford vehicles. In
addition, individuals who successfully complete many of Top Driver's courses
may be eligible for discounts of up to 20 percent on the cost of their
automobile insurance.
According to the National Safety Council and the National Highway Traffic
Safety Administration, statistics support the need for comprehensive, national
driver's training:
* Vehicle crashes are the leading cause of death among teens.
* Four million new teen drivers take to the roads each year, and half of
those drivers are involved in accidents within their first year of
driving.
* Many high schools are dropping driver education from their curriculum,
even though driver's training programs help reduce crashes by up to 86
percent.
* Three million adult first-time drivers enter the driver training market
each year.
* Vehicle crashes are the leading cause of death in the workplace.
* Vehicle crashes cost the country nearly $300 billion annually in
property damage, lost productivity, increased insurance premiums,
medical premiums, workers' compensation and disability.
"With statistics like these in mind, we see a great opportunity to have a
positive impact," Schroer says. "Ford Motor Company has been playing a key
role in people's lives for a century, and we intend to continue filling
consumers' needs as those needs evolve. We touch the lives of millions of
people every day in very emotional ways. We'd like to see as many of those
experiences as possible be positive."
The investment in Top Driver was finalized in October 2000 after nine
months of research and negotiation.