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Autobytel.com Announces Formation of Autobytel.Europe
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| Internet Giant to Offer Auto E-Commerce throughout Continent; Inchcape, Pon Holdings and GE Equity Join First Funding Round |
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| Updated |
Jun 10, 2004 21:17:47 |
| Rating |
 55 ( -10 -18.18% ) |
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Description:
London, UK – January 6, 2000 – Autobytel.com (Nasdaq: ABTL), the global automotive e-commerce provider, today announced that it is completing the initial funding of Autobytel.Europe and plans to open Internet websites throughout Europe. Autobytel.com, Inchcape plc, Pon Holdings B.V. and GE Equity combine to invest an initial $27 million in Autobytel.Europe.
Inchcape plc will invest $10 million in Autobytel.Europe for a 7.3% equity interest and Pon Holdings B.V. will invest $2 million for a 1.5% equity interest. Autobytel.com will invest $5 million and give Autobytel.Europe a perpetual license, retaining an 83.9% equity interest.
The Amsterdam-based Autobytel.Europe will license, invest in and offer joint services to national operating companies throughout Europe to localize the Autobytel.com offerings while building its brand name among consumers in individual countries, as well as on a Pan-European and regional basis.
“We have been studying the automotive distribution systems throughout Europe for almost two years, learning the ins and outs of the various car markets and getting to know the players in each country,” said Mark Lorimer, President and CEO of Autobytel.com. “For years, European consumers have been demanding a better way to buy, sell, finance, insure and maintain cars. Now, Autobytel.com is going to give it to them.”
Autobytel.com created car buying on the Internet in the United States in 1995 and enjoys 45% of the American online auto market. The Company has been ranked the 8th most-recognized brand name among all e-commerce companies in the States. “We have the international operations experience to make a single brand work throughout Europe,” continued Lorimer, who will serve as Chairman of Autobytel.Europe. “The success of Autobytel.co.uk (UK), Autobytel.se (Sweden), Autobytel.ca (Canada), and Autobytel.jp (Japan), as well as what we’ve learned readying Autobytel.ne (Netherlands), Autobytel.no (Norway), Autobytel-fi.com (Finland) and Autobytel.dk (Denmark) for launch, give us great experience marrying our technology and, more importantly, our core Autobytel consumer propositions, to the local auto distribution systems.”
More than 26 million new and used cars are sold per year in the three biggest European markets—France, Germany and the UK. Recent studies estimate the number of adults online in Europe is expected to explode from 34 million currently to 100 million by 2003, and that revenue from European e-commerce is expected to grow from $32 billion this year to $425 billion by 2002. “Europe is the perfect place for Autobytel right now—better than the U.S. when we started,” said Lorimer. “Europeans have begun a revolution of rising expectations which is already changing the way business is done. E-commerce will accelerate those changes which, perhaps, will be the most profound in the car business.”
“We are a global business, and you cannot lead globally unless you lead in Europe,” said Robert S. Grimes, Executive Vice President of International Development for Autobytel.com. “Europe is the world’s biggest industrialized market, and the changes being brought about by increasing economic integration create huge opportunities for Autobytel.com. Our core international development strategy, of partnering with the best in each country to insure smooth navigation of the local distribution systems, is the model we followed in forming Autobytel.Europe—and why we are so excited about being joined by Inchcape, Pon Holdings and GE,” said Grimes.
Peter Johnson, Group Chief Executive of Inchcape plc, the world’s largest independent automotive distribution group, said: “We have been greatly encouraged by the success of Autobytel UK, which we launched in April last year and which has already generated over one million unique visitors. We are delighted to have this opportunity to expand our relationship with Autobytel.com throughout Europe.” |
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