Here's tomorrow's WSJ article:
January 10, 2000
Ford and GM Sign Pacts
With Internet Companies
By FARA WARNER, KARA SWISHER and NICK WINGFIELD
Staff Reporters of THE WALL STREET JOURNAL
DETROIT -- Ford Motor Co. and General Motors Corp. are teaming up
with the world's biggest Internet services as they race to gain access to
millions of Internet consumers, both in the car and in cyberspace.
GM has struck a broad agreement with America Online Inc. that envisions
Internet access in vehicles by the middle of this year and marketing
programs to AOL's 20 million subscribers through the online service's auto
section. Ford announced that it was teaming up with Yahoo! Inc. in a
marketing deal to tap into its 105 million users and drive online traffic to its
existing Ford sites from Yahoo's auto section.
"They want to be part of consumer's everyday
lives," said Yahoo President Jeff Mallett. "And
it's also a way to get in front of a lot of
potential customers."
Ford made its Yahoo announcement during
opening day of the Detroit Auto Show's media
preview Sunday. The company also
announced it will offer Internet access and
other communication functions such as
electronic mail, navigation tools and traffic
updates in most of its Lincoln brand vehicles in
the U.S. as well in the Focus small car in
Europe starting in September. The company
showcased its forthcoming Internet technology
inside three "concept" vehicles, each called 24/7. The boxy, almost ugly
cars and trucks, served as the "carrying cases" to highlight the Internet and
all its content, said J Mays, Ford's design chief.
'Everywhere With Everybody'
GM's agreement with AOL is expected to give the auto maker's online
efforts far greater visibility. "We have a presence on the Net and our
brands have recognition, but it's not enough," said Mark Hogan, president
of E-GM, the company's electronic-business unit. "Our strategy is to be
everywhere with everybody."
AOL and OnStar, GM's satellite-based information system for car drivers,
will develop access to a wide range of AOL communications services,
including e-mail and instant messaging, according to an AOL
spokeswoman. Ultimately, drivers might also be able to use other AOL
services, such as its Moviefone ticket-purchasing system, within GM
vehicles. The push to extend its reach into cars is part of a broader effort
called "AOL Anywhere" intended to expand online usage beyond the
personal computer.
Auto Race In Cyberspace
Ford and GM are making their presences felt online. A look at their ventures:
Ford Motor
Yahoo partnership offering personalized services for Ford owners
through Yahoo Autos.
Minority stake in Microsoft CarPoint, which includes potential plans
to create a build-to-order online system.
Significant stake in CarClub.com, an online car-buying and
relationship marketing site.
Joint venture with Oracle to create AutoXchange, an online parts
purchasing system.
Joint venture with TeleTech Holdings which provides online
customer management systems
General Motors
AOL partnership (which already includes $1.5 billion investment by
AOL in GM's Hughes Electronics unit for satellite Internet access.)
GMBuyPower, online car-shopping site in cooperation with a
majority of its dealers.
Saturn selects outside car-shopping sites, including Autobytel.com,
to receive sales leads for the car unit.
TradeXchange, a partnership with Commerce One to operate an
online parts purchasing system.
OnStar, GM's in-car information and communications system, will
offer Internet functions in the car in 2000.
Mr. Hogan said GM drivers would initially be able to access certain
Internet services through cellular phones using GM's "Virtual Adviser"
available through its OnStar in-car communications service. "AOL will
certainly be a big piece of that," Mr. Hogan said. AOL already owns a
$1.5 billion stake in GM's Hughes Electronics unit aimed at creating
satellite Internet access.
Although the Ford-Yahoo deal doesn't include accessing Yahoo in Ford
cars, as the GM-AOL arrangement calls for, Yahoo founder Jerry Yang
said "we are talking about where else we can take this" including access to
Yahoo in Ford vehicles. "We've looked at how you can get Yahoo on
mobile phones and personal digital assistants," he said. "The car is as good
an entering device to the Internet."
Ford and GM wouldn't outline specific financial details, but people familiar
with Ford's situation said the company would pay Yahoo promotional and
marketing fees. Mr. Hogan said GM isn't taking a financial stake in AOL
and will be providing content and paying media fees. The deal is believed
to be one of GM's largest online advertising purchases ever.
For the big Web sites called portals, the auto partnerships are a
continuation of recent moves to leverage their huge user bases with
well-known consumer companies. Recently, Yahoo and Kmart Corp.
joined in a co-marketing and free Internet access venture, while AOL
struck an arrangement with Wal-Mart Stores Inc.
More Alliances Planned
Mr. Hogan said he plans to announce several more alliances in the coming
months as he tries to drive more consumers to GM's Web sites. He said he
will sign other portal deals, although not as large as the one with AOL, as
well as alliances with car pricing and research sites like Kelley Blue Book
and Edmunds.com. He also is looking at some 20 alliances with online
"community" sites.
Ford already has alliances with portals and popular Web sites such as
Microsoft Corp.'s CarPoint and iVillage.com.
Jamie Allison, Ford's e-marketing manager, said the Yahoo arrangement
doesn't affect existing online relationships with, for instance, CarPoint, in
which Ford has a financial stake. "There are many players online," Mr.
Allison said. "They fulfill different needs for us."
Both the AOL and Yahoo deals call for the auto makers to become key
players in helping the portals build their auto sections. Both will have areas
where Ford and GM owners can register their cars to get service
reminders, recall information and other owner programs. AOL said it will
work with GM to create a new version of the AOL Auto Channel later this
year. One feature, called My Auto, will allow users to schedule vehicle
maintenance and repair online.
"People consistently have difficulty finding manufacturers' Web sites,
especially if they [the site addresses] aren't intuitive, so any deal with a
major portal is beneficial," said Chris DeNove, consulting operations
director with research firm J.D. Power & Associates. "But what they are
offering isn't earth-shattering since similar services already exist on
CarPoint, Autobytel and others."
Under the Ford-Yahoo deal, Yahoo subscribers who are also Ford
owners can sign up their cars on Yahoo Autos section just as they do their
stock portfolio on Yahoo Finance. They will be fed into Ford's existing
site, OwnerConnection. Through Yahoo e-mail, they will receive
information about when their cars need to be serviced as well as vacation
planning and traffic updates in major markets.
While many of the services being offered through Yahoo were already
available through Ford's OwnerConnection site, Mr. Allison said the
company "wanted to be where people spend their time online."
In time, Ford wants owners to be able to set up service appointments
online with dealers. That should sit well with Ford's dealers who have felt
the company's Internet programs were trying to usurp their position with
consumers. |
