Autobytel.com Expands Global Reach with Formation of Autobytel Japan
Global leader in automotive e-commerce to partner with Japanese industry leaders in second largest automotive market in the world
Updated
Jun 10, 2004 22:49:48
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Description: Irvine, CA - June 17, 1999 - Autobytel.com (Nasdaq:ABTL), the global leader in automotive e-commerce and services, today announced the formation of Autobytel Japan. A joint venture between Autobytel.com and six industry-leading Japanese partners, Autobytel Japan's new-car program expects to launch in the fourth quarter of 1999. The six Japanese partners are Intec, Inc., ITOCHU Corporation, Trans Cosmos, Inc., Recruit Co., Ltd., Orient Corporation, and e-solutions, inc. Expected initial capitalization will be $12.2 million with Autobytel.com owning 1/3 of the company. Pre-owned vehicle sales, and financing and insurance services will follow in early 2000. "The rapid growth of e-commerce in Japan, in conjunction with its position as the second largest automotive market in the world, makes it an ideal market for Autobytel.com's global expansion," said Mark Lorimer autobytel.com inc.'s President and CEO. "Obviously, the automotive e-commerce landscape in Japan is very different from that of the U.S. With this in mind, we have carefully chosen partners with significant experience in the Japanese automotive e-commerce market, who can implement Autobytel.com's efficient car buying and selling model with understanding and respect for the traditional automotive business in Japan." "Partners were chosen for their expertise in specific industries, including automotive, e-commerce, financing and general business development in Japan," said Tetsuo Nakao, President and CEO of Intec, Inc. "I am proud that Intec is a key technology partner in bringing one of the most successful brands in e-commerce to Japan and believe that this opportunity is a key step in building the global infrastructure of e-commerce in the 21st century." Intec, Inc. () is a leading independent systems integrator and network service provider with its own infrastructure in Japan. "We believe e-commerce is the key to our future expansion plans," said Motoyuki Katsube, COO of Automobile Division and Director of ITOCHU Corporation. "With automobile dealerships operations in the U.S., Asia, Europe and Japan, we have witnessed a revolutionary change in the automobile retail industry and want to be a key part of those changes-this partnership enables us to participate in these changes." One of Japan's leading general trading companies, ITOCHU Corporation () is a $117.7 billion global company developing and investing in businesses for the 21st century. ITOCHU has already secured its place in Japan's e-commerce landscape with its operation of Excite Japan in conjunction with Excite, Inc. "Use of the Internet in Japan is growing rapidly," said Keishin Sasaki, President and CEO of e-solutions, inc. "Autobytel Japan promises to bring consumers the best online car buying process available and Autobytel.com's dealer support capabilities and efficiency improvement in automotive distribution will help automotive manufacturers enjoy better business results." e-solutions, inc. has extensive experience in developing e-commerce solutions, from business plan to implementation, and is spearheading the Autobytel Japan venture. The other industry leaders partnering to form Autobytel Japan are Recruit Co., Ltd., Orient Corporation, and Trans Cosmos, Inc. Recruit Co., Ltd. () is an information-driven company focused on consumer empowerment by operating the most widely known daily life support service web site. Recruit, one of the largest publishing companies in Japan, also publishes Japan's most widely recognized auto-related magazine. Orient Corporation () is the largest consumer finance company in Japan. Trans Cosmos () is a leading network services company, active in the rapid proliferation of the Internet and the construction of intranets, with a strong focus on electronic commerce. Trans Cosmos has entered into joint ventures with PointCast and DoubleClick in Japan. According to a recent report from DSA Analytics (DSAA), the Japanese market is ready for e-commerce buying solutions, and the proportion of Japanese Internet users who have shopped online may already be higher than in the U.S. According to MITI (Ministry of International Trade and Industry), Japan's e-commerce spending is growing at a rapid rate, with projections of spending for 2000 at $4.3 billion, up from $1.9 billion in 1999. In 1998, over 10 million new and pre-owned vehicles were sold in Japan. Autobytel.com recently announced that its purchase requests are resulting in over $1 million an hour of car sales or in excess of $9 billion annually. A May 1999 survey by Opinion Research Corporation ranked Autobytel.com as the seventh most recognized e-commerce brand and the most recognized online auto-buying site.
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