APCO Announces Test Marketing Program With Manheim Auctions
PR Newswire - June 05, 1998 12:16
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ATLANTA, June 5 /PRNewswire/ -- Automobile Protection Corporation (Nasdaq: APCO) announced today that it has entered into a pilot program with Manheim
Auctions to market vehicle service contracts to independent used car dealers under the name "Manheim EasyCare(R) Vehicle Service Contracts." Under the pilot
program, Manheim and APCO will joint market the product to select independent used car dealers in Georgia. The sales program will be supported through a
cooperative effort including Manheim, APCO, and APCO's network of EasyCare(R) sales representatives. The Manheim EasyCare(R) program will be offered in
conjunction with Manheim's Tracker Plus dealer management program and other Manheim designed products to empower the independent used car dealer.
Larry I. Dorfman, President and CEO of APCO, said, "The pilot program with Manheim provides us with an opportunity to test the independent dealer market for
service contracts. The independent dealer market represents approximately 14 million units in annual sales, which makes that segment only slightly smaller than the
used franchised dealer segment. If the pilot program is successful, we hope to take it national within a year. APCO has a national presence and can service
Manheim's dealers, without a significant addition to our infrastructure."
Mr. Dorfman also stated, "The mutual objective of Manheim and APCO is to offer independent dealers the same selection and quality of products currently available
only to franchised dealers. APCO is very well known in the franchised dealer market for providing exceptional service in the areas of product quality, claims handling
and the training and development process for dealership personnel. This approach will now be brought to the independent market place. Manheim is not only the
world's leader in the auction business, but is looked upon by independent dealers almost as their partner in the used car business. Manheim is the main source of their
inventory and brings great influence and credibility to this new venture."
Ralph M. Liniado, Senior Vice President of Development for Manheim Auctions said, "Our goal is to provide dealers with the tools necessary to compete
successfully in today's market place. Our Manheim Online dealer website (www.manheim.com) and our Tracker Plus dealership management software program
were the first steps in this process. The new AutoConnect consumer website (www.autoconnect.com) offers dealers an opportunity to list their cars on the Internet
for free. We believe that independent dealers can greatly benefit from access to a high quality warranty and service contract program brought to them by industry
leaders they trust. We see this relationship with APCO, providing quality service contracts and outstanding support to the dealers, as a major part of our initiative.
We have selected APCO as our partner for this pilot program, primarily based on their reputation for the best service contract program available for franchised
dealers and for their ability to service dealers on a national scale. Manheim Auctions has relationships with over 60,000 independent dealers and is uniquely
positioned to offer these products and services with APCO."
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: To the extent that this news release discusses financial projections, information
or expectations about our products or markets, or otherwise makes statements about the future, our statements are forward looking and are subject to a number of
risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to, the competitive
nature of the industry in which some competitors have significantly greater financial resources and name recognition than the Company, the availability of insurance
coverage at competitive rates and of insurance funds to make claims payments, the Company's dependence on independent sales representatives, dealers and a
major automobile manufacturer, the cyclical nature of the automobile industry, and other risks detailed in the Company's Form 10-K that has been filed with the
Securities & Exchange Commission in connection with its 1997 year.
APCO, established in 1984, is a leading marketer and administrator of products and services to automobile and recreational vehicle dealers. The Company's core
business is the marketing and administration of EasyCare(R) Vehicle Service Contracts and the EasyCare(R) Certified Pre-Owned Vehicle Merchandising Program.
The Company also administers warranty and service contract products under private labels for financial institutions, an insurance company and a manufacturer.
Founded in 1945, Manheim Auctions, Inc., is the world's largest operator of wholesale automobile auctions with 80 locations in North America and the United
Kingdom. In 1997, Manheim handled more than six million vehicles. The actual value of the vehicles sold at auction exceeded $28 billion. In support of the core
auction business, Manheim also provides vehicle reconditioning and certification, automated vehicle pricing products, dealer floor plan financing, dealer business
software, and government auctions. Manheim is a partner with the Dealer Services Division of Automatic Data Processing (ADP), offering free Internet used car
listings to dealers and consumers via AutoConnect.
Manheim is a subsidiary of Cox Enterprises, Inc. In addition to Manheim - Cox includes Cox Newspapers, Inc., Cox Broadcasting, Inc., publicly traded Cox
Communications, Inc., and Cox Radio, Inc. Cox Enterprises also provides online news, information and entertainment services via the Internet through Cox
Interactive Media.
SOURCE Automobile Protection Corporation
/CONTACT: Larry I. Dorfman, President and CEO; Anthony R. Levinson, CFO;
Todd Atenhan, Investor Relations Director, APCO, 800-458-7071 or 770-394-7070
or Eliza Taylor, Alexander Communications, for Manheim Auctions, 404-897-2300,
ext. 345; email: etaylor@alexander-pr.com/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 100756/
/Web site: manheim.com autoconnect.com
(APCO) |
