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BREAKING: DealerTrack to Acquire eCarList

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DealerTrack to Acquire eCarList

May 25, 2011 8:30 AM ET

Adds Innovative Vehicle Merchandising Solutions to Industry Leading Inventory Management Offering

LAKE SUCCESS, N.Y., May 25, 2011 /PRNewswire/ — DealerTrack AAX, Inc., a subsidiary of DealerTrack Holdings, Inc. TRAK, today announced that it has signed an agreement to acquire substantially all the assets of eCarList LLC, a leading provider of inventory management and merchandising solutions for automobile dealerships  The combination of DealerTrack’s current AAX inventory management solution with eCarList’s product suite of vehicle merchandising, pricing analytics and mobile inventory solutions will provide dealerships with a comprehensive vehicle management offering.  Len Critcher, president and chief executive officer of eCarList, along with the entire eCarList management team, will remain with the combined company.  The acquisition is expected to close in July, subject to customary closing conditions.

Mark F. O’Neil, chairman and chief executive officer of DealerTrack, commented, “We are extremely excited to announce this acquisition.  eCarList is one of the fastest-growing companies in the industry and is a leader in delivering innovative vehicle merchandising and management solutions for the automotive retail industry.”  O’Neil continued, “We believe the addition of eCarList will enable DealerTrack to expand its leading position as the industry’s most comprehensive suite of inventory management and merchandising solutions that leverages the best from each company.”

“We look forward to joining the DealerTrack family,” said Len Critcher. “The combination of DealerTrack AAX and eCarList will drive even more innovation to help dealerships generate additional vehicle interest and higher quality Internet and showroom traffic, all while maximizing overall deal profits.”

The financial impact of this acquisition to DealerTrack’s 2011 guidance will be given in conjunction with the release of DealerTrack’s results for the second quarter of 2011.

About DealerTrack (www.dealertrack.com)

DealerTrack’s intuitive and high-value software solutions and services enhance efficiency and profitability for all major segments of the retail automotive industry, including dealers, lenders, OEMs, agents and aftermarket providers.  DealerTrack, whose solution set for dealers is the industry’s most comprehensive, operates the largest online credit application network in the United States, connecting approximately 17,000 dealers with more than 1,000 lenders. DealerTrack’s Dealer Management System (DMS) provides dealers with easy-to-use tools and real-time data access to enhance their efficiency, while DealerTrack AAX delivers the inventory management tools and services needed to accelerate used-vehicle turn rates and help increase profits for dealers.  DealerTrack’s Sales and F&I solutions allow dealers to streamline the entire sales process as they structure deals from a single integrated platform.  Its Compliance solution helps dealers meet legal and regulatory requirements and protect their assets. DealerTrack also offers additional solutions for the automotive industry including electronic motor vehicle registration and titling applications, paper title storage, and digital document services. DealerTrack’s family of companies also includes data and consulting service providers ALG and Chrome Systems. For more information, visit www.dealertrack.com.

About eCarList (www.ecarlist.com)

Headquartered in Dallas, Texas, eCarList provides a full suite of inventory management and online marketing tools for the retail automotive industry enabling dealers to appraise, price, and merchandise vehicle inventory online in real-time.  eCarList’s services include inventory management, inventory distribution, vehicle appraisal and pricing tools, mobile software, dealership health reporting, CRM, custom web design, and digital marketing solutions via a fully integrated software as a service platform.  eCarList improves dealership productivity, inventory turn, sales, and profits for its clients by improving and simplifying the way in which inventory is managed, distributed, and viewed by consumers.

Safe Harbor for Forward-Looking and Cautionary Statements  

Statements in this press release regarding benefits to DealerTrack and its customers of the pending acquisition of eCarList and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995).  These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of DealerTrack to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.

Factors that might cause such a difference include: economic trends that affect the automotive retail industry or the indirect automotive financing industry including the number of new and used cars sold; reductions in auto dealerships; the impact of some vendors of software products for automotive dealers making it more difficult for DealerTrack’s customers to use DealerTrack’s solutions and services; security breaches, interruptions, failures and/or other errors involving DealerTrack’s systems or networks; the failure or inability to execute any element of DealerTrack’s business strategy, including selling additional products and services to existing and new customers; the integration of the eCarlist acquisition and the expected benefits; DealerTrack’s success in expanding its customer base and product and service offerings; and other risks listed in DealerTrack’s reports filed with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K.  These filings can be found on DealerTrack’s website at www.dealertrack.com and the SEC’s website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and DealerTrack disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances, except as required by law.

Originally published on DealerElite.net and ADM

In The Trenches During The AutoTrader Acquisition Of VinSolutions

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As I’m sure you’re probably aware by now, AutoTrader announced Wednesday that they had reached an agreement to acquire VinSolutions.

I was in the unique position to actually be with most of the executive leadership and employees of VinSolutions when the news broke. I was also with HomeNet Automotive when the rumors started that AutoTrader was working to acquire HomeNet Automotive. I also came really close to working directly for AutoTrader as they attempted to recruit me and, ironically, I was actually at an event in Colorado that Chip Perry was in attendance when I was informed by the Autotrader recruiter that I was “not worthy” (their loss). I like to think that AutoTrader is following me around acquiring companies I work for simply because they actually want to “acquire” me. (That’s my story and I’m sticking to it.)

After my initial shock passed, as an employee of a media company, the investigative part of me started paying attention. What I expected to see was executive management in a celebratory mode making plans to roll around in the pile of money they must have just made. I expected phone calls being made and Internet leads being submitted for new Ferraris. I expected VinSolutions employees to be anxious about their future employment and having a feeling that this company, that they all were very proud to be a part of, was at an end. I saw none of that.

What I saw was quite the opposite. Executive management and VinSolutions employees were still talking to dealers. VinSolutions employees were excited. The entire team was customer focused, not acquisition focused. In fact, it really seemed as if VinSolutions had acquired AutoTrader rather than the opposite. They weren’t feeling as if this was the end, quite the contrary. They felt like this was the beginning. They were excited about the incredible resources and value now available to VinSolutions to make their product(s) bigger, better and faster than they ever were able to before.

What makes this acquisition a historic moment is that this is the first time in our industry’s history that a non-DMS company has acquired a company that does what VinSolutions does. VinSolutions wasn’t interested in being acquired by a DMS, because several trends inevitably happen: the acquired company immediately loses half their market share, but they also fall into this virtual black hole eventually disappearing never to be heard from again.  AutoTrader “could” make VinSolutions the hub of their operation powering and integrating with ALL of the AutoTrader/Cox owned properties acquired in recent history.

With all of the properties that AutoTrader owns, they are in the unique position to dominate the automotive market. All of these properties, prior to their AutoTrader acquisition, had stellar reputations within the industry and with their customers. AutoTrader “could” leverage these properties to offer an unprecedented value to their customers. Whether (and how) they do this is still up in the air.

Not discounting the incredible value and loyalty that current VinSolutions customers have, ultimately VinSolutions is more than just another company. In fact, the people DEFINE VinSolutions. Yes, they have innovative solutions and offer the power and convenience of a completely integrated solution to dealers. VinSolutions could easily be named “Mike-Sean-Matt-Kendall-Solutions,” but that would certainly be hard to create a marketing campaign for. Why? The reason is simple. Mike Dullea, Sean Stapleton, Kendall Billman and Matt Watson ARE VinSolutions. Without them, AutoTrader would now own air. I sincerely hope that AutoTrader recognizes this (if they don’t already) and just like a NFL team, these people were signed to 20-year contracts. If you buy the Colts, you make sure Peyton Manning is included in the deal. Yes, VinSolutions’ integrated dealer solution offers great value to their customers. They are continuously looking to improve the value VinSolutions offers to their customers. The dedication and passion that these people, along with the entire VinSolutions team define VinSolutions.

As I talked to VinSolutions’ dealers that are attending this event, their concern had nothing to do with money/price increases, etc. It was completely focused on how AutoTrader would change WHO VinSolutions IS, and who they are is the key to their success. Yes, there are other people who can be a CEO. Yes, there are other people that can run a sales team. Yes, there are other programmers. Yes, there are other people who can be the “website” guy. The fact is that there is NOBODY that can replace these people, perform with the passion, dedication and experience that they have and perform at the level that they do. Disregarding the standard “business as usual” statement, VinSolutions truly has a culture of family. That family makes them who they are.

In my eyes, AutoTrader didn’t acquire a company; they acquired the equivalent of the Justice League of America. Take away any member of that team; the Justice League ceases to exist. JLA without Superman isn’t the Justice League of America. What made the JLA the powerhouse that they were was the collective power that they all brought to the table.

Does the competition need to be worried, absolutely, but not because all of a sudden VinSolutions is now owned by AutoTrader, but because AutoTrader acquired Superman, Batman, the Flash and the Green Lantern and, most importantly, a family.

Originally published on DealerElite.net and ADM

Getting The Most From The 10th Digital Dealer Conference & Exposition

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As people are getting prepared to depart for Orlando and the Digital Dealer Workshops followed by the 10th Digital Dealer Conference & Exposition, I thought some advice from someone who’s been to 6 of the 9 previous conferences would be helpful for those first-timers. This will be my first conference as an employee of Dealer Communications so these tips are derived from my experience gained from attending as a dealer.

1. Registration: Show up early to pick up your badge. Unless you like to see and wait in a line similar to one at Disneyland, make sure to find out when registration opens and get there early. Many people show up at the last minute and end up having to wait spending time they could be using for more productive purposes.

2. Planning: (click here to print the agenda before you go.) Read the session descriptions and plan (even if it’s tentatively) which ones you want to go to. There’s not a lot of transition time from one session to the other and there’s nothing worse than having to decide in-between sessions which to go to and then having to find the appropriate room and be late to a session.

3. Dress: Dress is business casual. These is an intense day of training. Be comfortable so you can concentrate on what’s being taught. You’ll be doing stuff from 7:30am-7:30pm on the second day so make sure whatever you wear (including shoes) will work for you for 12 hours of activities. Also keep in mind that there are plenty of post-conference opportunities to network so it could even be longer.

4. What to bring: You don’t want to be carrying around 20 pounds of “stuff” for 12 hours, I promise. It will get old fast. Bring only the necessities. Pads and pens are provided at every session. Refreshments are provided throughout the day. If you feel the need to bring your laptop, remember that electrical outlets are at a premium. If I could rent them out, I’d make a fortune. Also, while the rooms do have outlets, the setups may not make it convenient to charge items while paying attention to what’s being taught. Veterans carry only what’s necessary. Keep in mind that you will be provided with a bag to carry any exhibitor information or swag that you attain. Oh, and bring lots of business cards. You’ll need them. Keep in mind that most speakers will be happy to e-mail you their Powerpoints after the conference. All you need to do is ask them after their session.

5. Round–tables: Don’t miss the Peer Networking Round-tables on Tuesday morning. This offers you the chance to meet and ask questions of your peers. We’ll have 40 tables all split into different categories for you to choose from. This is a great way for you to meet some non-competing dealer peers that you can utilize as future sounding boards and/or share information with after the conference.

6. Exhibit Hall: Don’t be afraid of it. This is a unique opportunity to explore and see what new services and products are available. Nobody likes getting 20 solicitation calls per day while they’re in their store trying to sell a car so look at this is an opportunity to get all of your questions answered (and curiosity satisfied) in one place and at the same time. I always discovered at least one new thing. Whether or not you’re looking to add something to your store, knowing what your competitors may be using is valuable information. It’s also a GREAT opportunity to collect some cool swag and enter drawings and contests for some sweet prizes. Most vendors restrict their prizes to dealers so you’ll have an excellent shot at winning just for dropping off your business card with them. By visiting them, you may also get invited to some post-conference networking event that they are hosting.

7. Networking: Another valuable activity at the conference is the ability to network with your peers. We provide several opportunities to so this during our cocktail receptions. Use this time to get to know and meet new people. The exhibit hall is also open during this time so you could use this as another opportunity to visit with the exhibitors as well as enjoy a beverage and some appetizers.

8. SCVNGR: This year we’ve partnered with SCVNGR to offer attendees a fun promotion and way to earn some cool prizes like a MacBook Air and iPad 2 (and more) to dealers and managers just for participating in this fun promotion by completing challenges to earn points. Everyone who participates can earn an extra free drink at one of the networking receptions and unlock a custom DD10 virtual badge! You can also use this promotion as an educational opportunity. It’s a way for you to explore location-based services (if you’re not familiar with them) and see how they can be used to promote interaction with your business. You can find all the information you need to participate by checking in the conference program or, if you want to get a head start, you can text “DDFUTURE” to 48696

9. Opt–in for Text Announcements & Alerts: By opting in for text alerts and announcements, you’ll be up to date on any changes to the agenda or special announcement s. This will also provide you with a mobile agenda for you to use to navigate around from session to session. It’s as easy as texting “DD10” to 48696

10. Don’t Miss A Thing: You’ll be getting a lot of information in a relatively short period of time. Some people get overwhelmed. Don’t. There are plenty of ways in which to maximize your experience. If you missed a session you wanted to hear because there were two sessions held at the same time, track down the speaker for the session you missed and I’m certain they’ll be happy to share their presentation with you. If you can’t track them down, find me and I’ll get a hold of them for you and have them e-mail you the information if I can’t connect you two at the conference.

I hope this was helpful. For first-time attendees, welcome. We are confident that not only will you return for future conferences but will bring more people from your dealership next time. For returning attendees, thank you for your support and patronage. We strive to bring you a bigger and better conference every time. Please feel free to e-mail me at arnold(at)dealer-communications.com if you have any questions you’d like answered before the conference.

See you in Orlando!

Originally published on DealerElite.net and ADM

“Why We Don’t Need Car Dealers”

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I found this article in “The Week” magazine (July 17, 2009) reprinted from The Washington Post and thought I’d share.

“Why We Don’t Need Car Dealers” – Charles Lane, The Washington Post

“Why, in this day and age, should I have to haggle with ‘grinning salesmen’ when it’s time to buy a car? asked Charles Lane. The short answer is that car dealers are protected by state laws that give them exclusive sales territories and bar online competitors. Such laws might have made sense once upon a time, when dealers needed an incentive to invest in showrooms and inventory. But this ‘old business model has been obsolete for decades,’ and is completely anachronistic in the age of the Internet. Were it not for those laws, I could browse a manufacturer’s website, choose my model and equip it the way I like it, and then take delivery a few days later. The bankruptcy filings by Chrysler and General Motors offer a chance to move to this more efficient, lower-cost distribution model and break the stranglehold of the dealers. But powerful congressional Democrats are backing a federal bill that would preserve the dealers’ unfair advantages. If they prevail, the dealers will once again be ‘exercising political clout at the expense of the car-buying public.'”

It’s interesting that, at the very least, this person has this viewpoint. I submit that car dealers provide a valuable service to the car-buying public. Without car dealers, where would one test drive cars? Where would one go for factory service or warranty repairs? How would you trade-in a car? Who would help with financing?

This person’s viewpoint seems like a two-headed snake to me. While this columnist can whine about the injustices forced upon him by car dealerships, he would whine just as loud when he had a problem with this car (that he bought online sans dealer) but nobody to listen to him or help him with it.

In our industry, it’s the trend that we are making it easier and easier for people to not only communicate with us in whatever means they feel comfortable – in person, email, phone, chat, etc – but we make it as easy as possible for them to buy a car from us.

I believe this person is simply – uneducated. He could just about accomplish what he wanted to RIGHT NOW. There are many dealers that would facilitate just such a transaction and do so on a daily basis. I believe this person is simply just unaware that this option exists for him.

At the very least, I’d be willing to bet that the dealer that could show THIS consumer that he COULD buy a car this way FROM THEM would probably get at least one more sale and a customer for life.

As more people get enlightened to the internet car buying experience, it will be increasingly important for car dealerships to adapt to maximize their opportunities with EVERY consumer.

The most successful dealers will be the ones who cater to all shopping consumers – not just the ones walking in the front door….right now.

Originally published on ADM

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