AOL AutosDirect, Powered By AutoNation.com
Brings Exclusive Benefits to AOL Members
AutoNation to Provide Direct Fulfillment of Vehicle
Purchases Through AOL's New Auto Channel
FORT LAUDERDALE, Fla., and DULLES, Va., May 15 /PRNewswire/ -- America
Online, Inc. (NYSE: AOL), the world's leading interactive services company,
and AutoNation, Inc. (NYSE: AN), America's leading automotive retailer, today
announced a multi-year alliance under which AutoNation and its licensees will
be the exclusive retailers of new and used vehicles to AOL members who
purchase a car or truck through "AOL AutosDirect, Powered by AutoNation.com,"
a new co-branded site to be available on AOL that will allow members to buy
exactly the car they want online.
America Online announced previously the development of a new AOL Auto
Channel, expected to launch this fall, which will offer members a wealth of
reliable and accurate information, services, and tools for shopping, buying
and maintaining automobiles. Under terms of the agreement, "AOL AutosDirect,
Powered by AutoNation.com," will be the exclusive co-branded direct
fulfillment channel on the AOL Auto Channel. AutoNation will also continue to
operate its own automotive retail website, "AutoNationDirect.com," which will
also be offered through the auto areas of other AOL properties, including
AOL.COM, CompuServe, and Netscape Netcenter.
AOL members who purchase a new or used vehicle through "AOL AutosDirect
Powered by AutoNation.com" will receive a range of exclusive benefits,
including:
* One year free scheduled service
* AOL Concierge Search: personalized search of the AutoNation network for best price and inventory availability
* $200 off any vehicle ordered from the factory
* $100 off the purchase of a theft deterrent device
* Guaranteed service appointments that can be reserved online
"We think the combination of our automotive e-Commerce expertise and the
reputation of the popular AOL brand will create the Internet's top destination
for buying automobiles," said Michael J. Jackson, Chief Executive Officer of
AutoNation, Inc. "Soon AOL's users will have access to AutoNation's inventory
of new and used vehicles -- the Internet's largest -- all clearly priced and
all ready for immediate delivery. AutoNation will offer online consumers
virtually any brand of vehicle they choose, each at a low, no-haggle price.
This will be a shopping choice that is more direct than any online broker or
referral service. In addition, AutoNation dealerships and licensees offer a
nationwide network of service facilities that will be there to service AOL
members' vehicles long after the sale."
"Our goal is to create the best auto service in cyberspace, making it
easier than ever for the users of our brands to shop for and buy a car online,
and AutoNation is the nation's largest automotive retailer -- online or
offline," said Bob Pittman, President and Chief Operating Officer, America
Online, Inc. "Through this agreement with AutoNation, we will allow users to
research prices, compare features and accessories, secure financing, arrange a
test drive and select a vehicle for purchase -- all online."
AutoNation Acquires AutoVantage Car-Buying Service
In a related development, AutoNation announced today that it has acquired
the AutoVantage car-buying service from Cendant Corporation (NYSE: CD) for an
undisclosed amount in cash and other consideration. In addition, AutoNation
has entered into a three-year licensing agreement to use Cendant's AutoVantage
trademark and its related logo solely in connection with the acquired service.
Cendant will retain all other AutoVantage assets including, but not limited
to, all aspects of the AutoVantage membership club business, its website's
content and technology. Adding the AutoVantage car buying capabilities puts
AutoNation in a position to fulfill online purchase requests from AOL members
and other customers in many of the markets where AutoNation does not already
have a dealership presence. In addition, AutoNation will continue to provide
Cendant's AutoVantage members access to this leading auto-buying service.
Mr. Jackson said, "The acquisition of the AutoVantage car-buying service
accelerates AutoNation's development of a national footprint to serve Internet
vehicle customers. We will work closely with the existing AutoVantage dealers
to ensure that they too benefit from the increased traffic that will be
generated by our alliance with AOL."
AutoVantage is ranked by J.D. Power & Associates as one of the three most
popular automotive lead providers among consumers. The more than 900
automotive dealers who participate in the AutoVantage service will supplement
the nearly 300 existing AutoNation dealerships, substantially increasing
AutoNation's geographic coverage. Under terms of the acquisition's related
licensing agreement, AutoNation will continue to service dealers using the
AutoVantage trademark for lead referral service.
Cendant Internet Group, which collaborated with Cendant Membership
Services in negotiating this transaction on behalf of Cendant Corporation, is
aggressively pursuing Internet-, broadband- and wireless-related convergence
opportunities for Cendant with the objective of leveraging its businesses in
the areas of travel, real estate and direct marketing.
About America Online, Inc.
Founded in 1985, America Online, Inc., based in Dulles, Virginia, is the
world's leader in interactive services, Web brands, Internet technologies, and
e-commerce services. America Online, Inc. operates: two worldwide Internet
services, America Online, with more than 22 million members, and CompuServe,
with more than 2.7 million members; several leading Internet
brands including ICQ, AOL Instant Messenger and Digital City, Inc.; the
Netscape Netcenter and AOL.COM portals; the Netscape Navigator and
Communicator browsers; AOL Moviefone, the nation's #1 movie listing guide and
ticketing service; and Spinner.com and NullSoft's Winamp, the leaders in
Internet music. Through its strategic alliance with Sun Microsystems, the
company develops and offers easy-to-deploy, end-to-end e-commerce and
enterprise solutions for companies operating in the Net Economy.
About AutoNation, Inc.
AutoNation, Inc., a Fortune 100 company based in Fort Lauderdale, Florida, is America's largest automotive retailer, on and off the Internet. The
company owns and operates more than 400 new vehicle franchises in 19 states
and generates annual revenue of more than $20 billion. AutoNation is also the
largest automotive retailer online, having sold more than $1 billion worth of
vehicles via the Internet last year.
Certain statements and information included in this press release
constitute "forward-looking statements" within the meaning of the Federal
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied in such forward-looking statements.
Additional discussion of factors that could cause the actual results to differ
materially from management's projections, forecasts, estimates and
expectations is contained in the SEC filings of the respective companies.
SOURCE AutoNation, Inc.