AUTC DD part 1 of 2........
COMPANY OVERVIEW
The “clicks and mortar” company AUTC (AutoTradeCenter.com) has established itself as the leader in providing B2B solutions for the wholesaling and remarketing of used cars. The domestic wholesale used car industry is a $115 billion per year industry. AUTC (OTCBB) is a soon to be profitable e-commerce company that is currently growing its revenue 40-50% per year by specializing in B2B solutions for the wholesale used car and off-lease market, unlike Autoweb and Autobytel which deal in the retail market. AUTC’s CEO, Roger Butterwick, was recently quoted as saying he expects next years revenues to at least double as projected from its land based “bricks and mortar” operations alone. AUTC provides online cyber auctions, inventory listing and services, private intranet accounts, manufacturers and consignors portal all by way of virtual private networks (VPN's). AUTC’s automotive internet wholesaling site enables dealers and manufacturers to market used and off-lease vehicles to other dealers prior to / or instead of the slower and more costly traditional auto auction process. The traditional land-based vehicle disposition process, takes an average of 45 days, which is extremely costly to the lessor. The average vehicle loses an estimated 1.0% of its value per month, which translates to an estimated loss of $650 million annually. AUTC’s website speeds up and optimizes the process of vehicle disposition saving the dealers and manufacturers lost revenue and enabling them to turn over their inventory more quickly. AUTC currently has approximately 500 dealers as members of their AUTC web site (http://www.autotradecenter.com) and this number is expected to increase substantially during the next two quarters as they begin to re-focus their attention to the dealer body. AUTC also believes that it will secure 80% of the manufacturer’s dealers as members within two years.
According to Gartner Group, Inc. in 1999 worldwide B2B e-commerce reached $145 billion, and the North America region accounted for 63 percent of the market with revenue reaching $91 billion. In 2004, worldwide B2B e-commerce is projected to surpass $7.29 trillion; the North America region will account for 39 percent of the market with revenue of more than $2.84 trillion. According to the technology guru, Michael Murphy the current B2B sales will balloon 25 times in the next 18 months. Merrill Lynch Vice-President Henry Blodget figures B2B e-commerce companies could command a stunning $1.5 trillion in market value by 2003. But most of all, they are licking their chops over the unprecedented opportunity. Besides offering big savings on procurement costs, e-marketplaces take a cut of transactions. Such revenues are expected to grow from $55 billion, or 13% of all online trade this year, to $1.4 trillion, or 53% of business-to-business e-commerce, by 2004, says Forrester.
AUTC is fully reporting and has an accepted S-1 registration statement filed with the SEC paving the road to an application for NASDAQ listing. For additional information check out AUTC’s website autotradecenter.com and plenty of excellent info at AUTC’s IR firm, deJong -- dejong.org
RECENT COMPANY NEWS
1) AutoTradeCenter.com Inc. Announces National Roll-Out Schedule forAmerican Honda Finance Corporation Web Site SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 9, 2000-- AutoTradeCenter.com Inc. announced today that the Company has successfully completed the first phase of its remarketing solution for American Honda Finance Corporation and will complete its national introduction May 18th through June 7th. biz.yahoo.com
The Vehicle Inter-Dealer Purchase System (VIPS) program has been implemented seamlessly for American Honda Finance by AUTC and has already produced real savings for Honda. Autotradecenter’s VIPS system is reducing Honda’s per transaction costs by 80% when compared to traditional remarketing methods.
autotradecenter.com
and far exceeded sales expectations of off-lease vehicles in the first 45 days
autotradecenter.com
CEO of AUTC said the reception from the Honda Dealers has been very exciting. We have launched the Honda site only in the California region - to date, we have signed up over 90% of the dealer body in the region. The test in California has been going well over the past two weeks as we continue to work out the "kinks". Most of the operating issues have been as a result of Honda not being able to train their people with the new procedures. You must remember, this system is a massive undertaking by Honda. They are changing the entire off-lease process. Honda Motor Company is very excited about the early results. The Honda deal has the potential of ranging between $2,000,000 to $8,000,000 annually. This is a pretty wide range but it will all depend upon the acceptance of the system. The margins on this implementation should be much higher than AUTC’s land based operations.
David Langley who is theManager of Vehicle Remarketing, American Honda Finance, has been elected Chairman of a fledgling association of Vehicle Remarketing executives. They have met twice since February and are receiving interest from many different sources. The latest meeting, held at Hyundai Motor America HQ, formalized the creation of the new association. In attendance were representitives from: Hyundai Finance, GECAL, WFS Financial, Daewoo Motor Company, American Isuzu, Triad Financial, Kia Motors, and American Suzuki... among others, twenty in all. The purpose of the group is to "share ideas, knowledge and best practices to facilitate standardization of processes within the industry." David said he is receiving three or four inquiries per week from people interested in joining the new group. From everything we have heard about how smoothly the AUTC-Honda deal has gone, David Langley should be a strong advocate for AUTC as an efficient, novel solution for remarketing vehicles.
2) Recently signed B2B remarketing letter of intent Suzuki.
biz.yahoo.com
The site has been implemented and is up and running for Suzuki.
suzukiproline.com
autotradecenter.com
A PR annoucing the final deal with Suzuki should be out any day now.
3) AutoTradeCenter.com Establishes New Online Web Site for Consumer Trade-Ins
This new site (http://www.tradeincarsonline.com) is the first and only known Web site that will enable a consumer to complete an online new car purchase transaction with a trade-in through Internet buying services such as www.autobytel.com, www.autoweb.com, www.carsdirect.com, and www.driveoff.com.
The company plans to launch www.tradeincarsonline.com prior to March 1, 2000 in the Phoenix market with further plans to expand to 300 cities nationwide. biz.yahoo.com
4) A partnership with Autobytel to utilize AUTC’s website tradeincarsonline.com to facilitate trade-ins. biz.yahoo.com
5) AUTC acquired their only competitor, NDSCo.com, an automotive industry technology provider. SCOTTSDALE, Ariz., Mar 2, 2000 (BUSINESS WIRE) -- AutoTradeCenter.com Inc. (OTCBB: AUTC) Thursday announced that the company has acquired NDSCo.Com Inc. an Internet technology provider of automotive business-to-business solutions. NDSCo.Com was a major competitor of the company in providing technology and re-marketing services for fleet and off-lease vehicles to manufacturers, car
rental companies and financial institutions............. ragingbull.com
From NDSCo.com web site prior to AUTC integration, the NDSAdvantage system offers: ezresearchonline.com
6) AUTC is a fully reporting company and has an accepted S-1 to enable the filing of a Nasdaq application. AUTC’s PRs confirms their desire to file for NASDAQ listing. Excerpt taken from 02/17/00 release:
Company President Roger L. Butterwick stated, ``We are pleased to have the support of the investment community and specifically the commitment made by our most recent private investors. This funding enables us to move forward in the execution of our business plan and, more significantly, allows us to actively pursue our application to NASDAQ. biz.yahoo.com
7) AUTC is accelerating its expansion.
They have hired 13 people during the past 45 days as of July 2000 which brings them to a total of 40 management, administrative, marketing and technology personnel. In addition, they have over 40 independent bookers working through our current 5 physical offices. AUTC plans to add 10 offices by December 2000. This will add approximately 50 to 60 administrative personnel and brokers.
INSTITUTIONAL OWNERSHIP
LEGG Mason Inc. 13,000 shares 6-30-00
Pacific Century Trust 10,000 shares 6-30-00
lionshares.com
Internet Capital Holdings ??? ????
icapitalholdings.com
Goldman Sachs Co. bought 10,000 shares as of 12/31/99 but then later sold for a nice fat 100% profit 3/31/00 prior to their own Abby Cohen bringing the tech market to its knees. I expect they have their finger on the trigger again, waiting for all the weak hands to bail. Remember AUTC is an OTC stock. It's very rare for Big Wall Street firms to give OTC stocks the time of day. lionshares.com
Both Wall street Giants BEAR STERNS and ROBERTSON STEPHENS have recognized the potential in AUTC
Robertson Stephens report on up and coming B2B companies listed AUTC as a B2B company to watch: autotradecenter.com
BEAR STERNS report mentioning AUTC: ezresearchonline.com
RECENT ARTICLES AND EVENTS INVOLVING AUTC
Colette Marcilliat, president of AutoTradeCenter Remarketing Services, will be speaking at the 2000 iRemarketing conference Oct. 1-3
ragingbull.altavista.com
CEO of AUTC is interviewed by www.ceocast.com on July 18th, 2000
biz.yahoo.com
Notes of this interview can be found at:
ragingbull.altavista.com
You can listen to the interview by going to:
ceocast.com
July 12th, 2000 Article about AUTC at Webocracy: The Auto Industry
webocracy.com
AUTC made the listing for B2B companies in the current issue of Advertsing Age's 'B to B" magazine. (April 10th issue). AUTC is the only listing in the automotive sector.
netb2b.com
Other B2B directories listing autotradecenter;
forbesbest.com
ecommerceregistry.com
b2bave.com
Auto Auction Shopper Used Car News: Honda Uploads Off-Lease Autos. by Jenny King, Scottsdale Ariz. American Honda Finance Corp. has signed a two-year agreement with AutoTradeCenter.com Inc. to market up to 100,000 lease-return vehicles annually on-line.......
ragingbull.com
Recent story about AUTC in the Feb. 28th issue of “Automotive News”
Don’t have link for it yet, but almost any public library would have it.
EZ |
