From earlier this year,concerning CBLT's business.........Robertson Stephens Gives Outlook on eAuto
Sector
13 January 2000
Robertson Stephens Gives Outlook on eAuto Sector - eAuto Revolution Has Shifted into High
Gear -
SAN FRANCISCO--Jan. 13, 2000--Robertson Stephens Senior Automotive Analyst Jordan
Hymowitz today issued a report giving his outlook on the emerging eAuto industry.
"We believe a technological transformation is occurring in the American automobile industry," said
Hymowitz. "Auto manufacturers, fueled by the Internet, are working to streamline their distribution systems,
which still account for more than 30 percent of production costs. New alliances are being created to
facilitate this goal, both on the front and back end of the production cycle."
"On the front end, Internet companies are working to match consumer wants with available supply in
order to improve customer satisfaction, eliminate excess inventories and maximize manufacturer margins,"
said Hymowitz. "Several auto manufacturers are attempting to enter the retail channel directly, both by
buying dealerships and by creating Web sites to sell directly to consumers. On the back end, manufacturers
are making strategic alliances with software and technology companies to facilitate leaner production."
"Franchised dealers, the staple of the vehicle distribution system for nearly one hundred years, are feeling
increasing competition on several fronts and fear margin pressure," said Hymowitz. "Dealers are signing up
with Cobalt and other companies specializing in customized Internet solutions in record numbers. Dealers
are also increasingly relying on state franchise laws to insure their role in the distribution of automobiles, and
hence, their financial soundness."
"Numerous eAuto endeavors are seeking to capitalize on consumers' dislike of the dealership experience
combined with their fondness of the Internet. Well-funded private eAuto companies include
CarsDirect.com, CarOrder.com, Greenlight.com and DriveOff.com," said Hymowitz. "In short, we think
investors are waging heavily that eAuto companies will be tremendously successful." |
