Car Dealers Adjust to Internet Selling

Business Wire, August 13, 1998

METUCHEN, N.J.--(BUSINESS WIRE)--Aug. 13, 1998--Auto dealers, manufacturers and Internet vehicle buying/referral services will meet in Nashville on November 16 & 17 to explore how to sell more cars and trucks on the Internet.

Speakers will include Doris Ehlers, Partner with J.D. Power and Assoc., Karen Piurkowski of The Polk Company and Jane Waida of iTRiBE, Inc. Three additional speakers will be announced soon. Each of companies presenting have concluded significant research into the habits, patterns and wants of the Internet car buyer, as well as dealership attitudes and perceptions of this new customer.

Studies by J.D. Power and Associates and The Polk Company put Internet purchases of new vehicles at about 9% of total retail sales - a full 40% or more of all new vehicle buyers use the Internet to research before visiting a dealership to complete the transaction. While the National Auto Dealers Association indicates that approximately 50% of all dealers have their own web sites, iTRiBE, Inc. -- a web site developer active in the auto market -- indicates that their studies show few know how to organize for this new selling paradigm.

With Internet buying/referral services like autobytel.com, Microsoft's(MSFT) carpoint.com, (a venture in cooperation with auto industry computer system provider Reynolds & Reynolds(REY), and autoconnect.com -- a used vehicle site developed by ADP(AUD) and Manhiem Auto Auctions -- the race is on to see who will be the most successful in moving more and more retail vehicle transactions to cyberspace.

Car and truck manufacturers are also working hard and fast to establish an Internet presence that can help steer new vehicle prospects to their dealerships. GM(GM), Ford(F), Chrysler(C), Honda(HMC), Toyota(TOYOY), Nissan(NSANY), Daimler-Benz(DAI) and Volvo(VOLVY) - just to name a few have aggressive Internet strategies.

The conference will feature six recognized industry experts and presentations will focus on the full understanding of how retail auto and truck buyers use the Internet. J.D. Powers' recently completed study contrasts how Internet car shoppers view dealership web sites and what they want from them, with the perspective of the dealership and what they think the customer wants.

The Polk Company has done extensive research on the Internet habits of all new car buyers - those completing the transaction on-line and those who just use the Internet to gather information prior to face-to-face car shopping. Their findings indicate that Internet car shoppers are a very new breed and want to be treated differently once in the dealership. "Our research results show that this instant access to vehicle/dealership information is changing the way customers relate to automobile dealers" said Karen Piurkowski, managing director of Polk's consumer loyalty group.

iTRiBE, Inc., has studied new car dealership web sites and the dealer organizations that sponsor them. Their research indicates that few dealership organizations are properly organized to gain the maximum benefit from this new and relatively inexpensive advertising medium. Their presentation will focus on how to organize at the dealership level to handle and close Internet sales.

Clearly, the Internet is poised to have a significant impact on how new vehicles are sold. Information about this conference can be obtained at http://www.dealersedge.com/arow/ or call 800/321-5312. The conference is sponsored by WD&S Publishing - an 18 year supplier of auto industry newsletters focusing on the new car and truck segment of the automotive market.

Information about the company's publications and services can be obtained at http:\\www.dealersedge.com/arow, or contact Jim Muntz at 800/321-5312/Fax 800/314-4770 or email jimmuntz@dealersedge.com.

    CONTACT: Jim Muntz
              800/321-5312
              Fax 800/314-4770
              email: jimmuntz@dealersedge.com.