Since the AutoTrader.com announcement to purchase VinSolutions in mid May, I have been polling dealers and industry leaders on their perspective of the acquisition.

Some have said that the consolidation wave in our industry was started when ADP decided to purchase Cobalt.  Some commented that this acquisition marked a new push to provide more value to dealers while other were unsure of what the future would hold.

The commentary that I did not hear is that Autotrader’s buying spree may not deliver anything more significant than an attractive package to roll-up into an IPO.   Could Chip Perry be more focused on creating a shiny IPO apple rather than delivering real value and integration for dealers?

The jury of the automotive community is divided.

If you have not been watching the financial news lately, there is a strong uptick in initial public offerings (IPO).  In fact some have said that the market has IPO fever once again.

With the recent IPO success of LinkedIn, I can guarantee that a wave of new filings and IPO debuts will be scheduled this year.  It’s once again fashionable to be in the IPO game. The small float of shares made available in the LinkedIn IPO created a high demand which resulted in the stock trading over double it’s opening price on its first day of trading.

The LinkedIn IPO, according to popular Mad Money TV host Jim Cramer, was reminiscent of stock market games that got us in trouble with the dot com bubble.  While smaller IPO’s come to market, the granddaddy of IPO’s will surely be Facebook.  This will surely heat up the IPO market and that means spill-over in our industry.

I’ve been told stories of how past acquisitions in the automotive service sector from larger entities resulted in nothing more than a media bubble.  These consolidations lost momentum once the shine was off the apple.    Is the Autotrader buying spree a new breed of roll-up activity?

Only time will tell what the Autotrader acquisition spree of the last 12 months will yield, but I predict they are preparing for an IPO.

Is this good for dealers?  Let’s see how this plays out.

Santa Monica, California (April 5, 2011) – TrueCar, Inc., the automotive industry innovator in new and used car pricing, trends and forecasting, has announced that GR Match, an affiliate of Guthy-Renker LLC, will make a significant equity investment in the company. The seminal partnership will allow TrueCar to give millions more Americans access to truthful, transparent, upfront prices and a no-hassle car buying experience through Guthy-Renker’s highly successful and proven method of targeting, messaging and network strategies to increase awareness of the brand on a mass scale.

“Guthy-Renker believes in TrueCar’s mission, value proposition, and ability to revitalize and transform the auto sales industry – a landscape that currently provides few positive experiences for the consumer and shrinking margins for the retail car dealer,” said Scott Painter, CEO and Founder of TrueCar.

Guthy-Renker will play an integral role in shaping TrueCar’s brand visibility by broadening and amplifying the power of its  reach beyond the internet through the use of TV, print, radio, and other powerful advertising channels.

TrueCar has already helped more than 250,000 consumers save nearly $1 billion dollars on auto purchases, while simultaneously helping its nation-wide network of certified dealers increase velocity and maintaining margins through operational and marketing efficiencies, and a steady stream of in-market customers who are ready to buy.

For dealers who join the TrueCar certified network, the Guthy-Renker partnership opens up the floodgates for exposure to millions of potential car buyers – men, women and families who are in search of a fair price and a positive, no-hassle car buying experience.

“TrueCar offers a paradigm shift for an entire industry.  It is fundamentally changing the way cars are sold,” said Ben Van de Bunt, co-CEO of Guthy-Renker. “We are excited to partner with TrueCar and help them bring transparency and customer empowerment to an industry requiring both.”

TrueCar is poised to move beyond the services provided by traditional websites such as Kelley Blue Book and Edmunds – solutions that have provided a measure of information to car consumers over the years, but have never provided the kind of transparency, accuracy or context of the unbiased data provided by TrueCar.

“The days of lead generation and haggling over price are over,” said Bernie Brenner, Chief Strategy Officer for TrueCar.  “Moving forward, every car buyer in the United States can get a fair deal and a positive experience at the dealership.   It starts with the power of information and continues with real upfront pricing.  We are changing the game for both the dealer and the consumer.”

Brenner continued, “Guthy-Renker understands the art and the science of reaching a wide audience.  We believe this relationship is a once-in-a-lifetime opportunity to take the TrueCar brand national.”

Ford Motor Company and FordDirect, a joint venture between Ford Motor Company and its franchise dealers, today announced the launch of iPad-optimized versions of the Ford and Lincoln Build and Price online customer shopping tool, specifically designed for the iPad and iPad 2 as well as the iPhone and Android smart phones.

The newly optimized versions of this tool provide iPad and smart phone users with immediate access to the Build and Price feature of the Ford and Lincoln sites, allowing them to virtually build a car from top to bottom, receive a price estimate and find a local dealership that can facilitate the purchase.  Since its launch, the iPad Build and Price and smart phone experience has generated nearly 750 leads per week for Ford Motor Company dealers.

DEARBORN, Mich. June 1, 2011 – Ford Motor Company and FordDirect, a joint venture between Ford Motor Company and its franchise dealers, today launched iPad-optimized versions of the Ford and Lincoln Build and Price online customer shopping tool, specifically designed for the iPad and iPad 2 as well as the iPhone and Android smart phones.  This functionality is available on Ford.com, Lincoln.com and on the FordDirect dealer websites, DealerConnection and DealerConnection Premier Customization Service.

Increasing numbers of auto shoppers are conducting online research before buying a vehicle, and a growing proportion of them are using mobile phones and other wireless devices to price and compare products as they shop.  Now iPad and smart phone users can access the Build and Price feature of the Ford and Lincoln sites, allowing them to virtually build a car from top to bottom, receive a price estimate and find a local dealership that can facilitate the purchase.

When a consumer accesses the Ford.com or Lincoln.com site on an iPad or iPad2, the iPad will automatically launch the iPad-optimized version of the Build and Price pages. The Build and Price feature can be accessed directly on an iPad at t.bp3.ford.com and t.bp3.lincoln.com.

“Our new iPad and smart phone optimized Build and Price features provide consumers with more opportunities to learn about the Ford and Lincoln vehicles they are interested in, whatever their location,” said Stacey Coopes, chief executive officer of FordDirect. “In turn, Ford and Lincoln dealers gain more opportunities to reach consumers and access leads from interested shoppers for Ford and Lincoln dealers.”

Since its launch, the iPad Build and Price and smart phone experience has generated nearly 750 leads per week for Ford Motor Company dealers.

About FordDirect

FordDirect (forddirect.com/dealercenter) is a joint venture between Ford Motor Company and its franchised dealers to create a comprehensive Web presence for dealers and provide digital marketing services that help dealers sell more cars and trucks. Ford dealers sold more than 275,000 new vehicles from FordDirect Internet referrals in 2010. FordDirect provides dealers new and pre-owned marketing services, call tracking, lead management solutions, dealer Websites, search optimization and marketing, database marketing, marketing services for regional dealer advertising groups and other marketing services. FordDirect is headquartered in Dearborn, Mich.

iPad is a trademark of Apple Inc.

Ann Arbor, MI—June 1, 2011—HookLogic announced today that David Metter has been appointed president, automotive with responsibility for a burgeoning business unit focused on solutions for automotive industry clients. In previous roles, Metter served as chief marketing officer for MileOne Automotive, a large dealer group, and as director of sales for Autobase, a leading CRM solutions provider.

“We’ve seen tremendous growth in the automotive vertical with even more potential ahead,” said Jonathan Opdyke, CEO of HookLogic. “David brings an amazing mix of industry expertise, strategic vision and hands-on sales and marketing experience that make him ideal for leading our next phase of growth. Our clients and partners will benefit immensely from his presence. We’re thrilled to have him on board.”

Metter is regarded as one of the foremost experts in the automotive marketing and e-commerce space. He is a frequent speaker at industry events including Digital Dealer, the Global Automotive Conference and JD Power’s Automotive Internet Roundtable.

Metter brings a history of success at both automotive dealers and service providers. He began his career in sales, rising to be one of the top Chrysler salesmen in the country and general manager of a dealership. Later, his sales leadership helped grow Autobase from a small start-up to the leading CRM software vendor in the space.

As Chief Marketing Officer of MileOne Automotive, Metter pioneered the use of many new technologies, including HookLogic, decreasing the dependence on expensive traditional marketing tactics and dramatically improving online advertising results. As a consultant, his strategies have served as a model for dealer marketing and e-commerce departments throughout North America.

“When I first met the team three years ago, I was impressed by their success in the travel and retail verticals with clients like Expedia and Overstock.com,” said Metter. “As one of their first automotive clients, I learned firsthand how well the product works. HookLogic is one of the best returns on investment an automotive marketer will ever see. I’m truly excited to join the team and build out our automotive business.”

About HookLogic’s Solutions for the Automotive Industry: HookLogic powers targeted incentive programs that drive in-market shoppers to auto dealerships and other lead-driven businesses. HookLogic solutions are easily implemented, work with any marketing medium and enable end-to-end reporting and optimization. Headquartered in New York City, the company has offices in Ann Arbor, MI and Manchester, UK. Clients include Lithia Motors, MileOne Automotive, Suzuki, Germain Motor Company, Suburban Collection, and AutoTrader.com. Learn more at www.hooklogic.com/automotive.

AutoTrader.com Agrees to Acquire VinSolutions

AutoTrader.com buys VINSolutions

ATLANTA and OVERLAND PARK, Kan., May 18, 2011 – AutoTrader.com has signed a definitive agreement to purchase VinSolutions, a leading provider of end-to-end solution platforms for dealers including Customer Relationship Management(CRM), Internet Lead Management (ILM), inventory management tools, dealer websites, sales management and desking tools, social media and direct targeted marketing campaign tools. Terms of the deal were not disclosed. The transaction is expected to close by mid-June.

VinSolutions will operate as a subsidiary of AutoTrader.com, and the two companies will collaborate on methods of infusing value into both companies and all of their customers, which will primarily be in the areas of product development, operations and sales.

"We are thrilled to acquire VinSolutions and add it to our best-in-class portfolio of dealer software solutions companies," said AutoTrader.com President and CEO Chip Perry. "Over the last few years, the online marketing and dealer software solutions space has continued to grow and thrive which has been important to dealers' success, but at the same time it has become increasingly challenging and cumbersome. VinSolutions will further ramp up our dealer solutions product suite to provide dealers with a simpler, more functional one-stop-shop solution of Internet marketing software tools accessible by the dealer through a single sign-on tool."

"VinSolutions is a strong complement to our existing dealer software companies, and a priority for us will be to ensure the scalability of VinSolutions software & customer support, and to execute on plans for how VinSolutions will integrate with vAuto, HomeNet and CDMdata to create an even more powerful suite of Internet marketing and sales related software solutions for dealers," Perry added.

"Our team is very excited to join forces with AutoTrader.com because we are both passionate about helping dealers use the internet and innovative technology to grow their business," said Mike Dullea, CEO of VinSolutions.com. "Together we will strive to constantly improve how we serve our dealers and how we help them attract, serve and retain their customers."

Because AutoTrader.com and VinSolutions are both committed to the interests of all auto dealers, its software tools will be offered on a flexible a-la-carte and no long-term contract basis, and dealers' will have the flexibility to work with their other software vendors.  This is consistent with AutoTrader.com's consultative sales approach to help dealers succeed.  A further priority for AutoTrader.com will be to work to promote open platforms and integration across its software solutions and other dealer software tools.   We also will establish policies that provide dealer-friendly data ownership rights to protect dealers' confidential customer data.

"I am a big believer in VinSolutions' value proposition for the industry," said Dale Pollak, Founder of vAuto.  "VinSolutions is serious about providing dealers with tools that enable them to manage their business effectively and successfully, and this acquisition demonstrates that AutoTrader.com is committed to investing in the dealer software solutions business to benefit customers and the industry as a whole."

Consistent with AutoTrader.com's approach to other acquisitions over the past year, VinSolutions will maintain its current management team led by CEO Mike Dullea and CTO Matt Watson who will continue to help propel the company's growth in the future. VinSolutions will maintain its headquarters in Overland Park, Kansas.

The Presidio Group, LLC, through its subsidiary Presidio Merchant Partners LLC, acted as exclusive financial advisor to VinSolutions.

About AutoTrader.com
Atlanta-based AutoTrader.com, created in 1997, is the Internet's ultimate automotive marketplace and consumer information website. AutoTrader.com aggregates in a single location millions of new cars, used cars and certified pre-owned cars from thousands of auto dealers and private sellers and is a leading online resource for auto dealers, individuals and manufacturers to advertise and market their vehicles to in-market shoppers. The company also provides a robust suite of software tools for dealers and manufacturers to help them manage and market their vehicle inventory and display advertising on the Internet. AutoTrader.com continues to grow key business metrics, including revenue, profitability and site traffic. Today, AutoTrader.com attracts more than 15 million unique monthly visitors who utilize the site to review descriptions, photos and videos of vehicles for sale; research and compare vehicles; review pricing and specials; and read auto-related content like buying and selling tips and editorial coverage of major auto shows and automotive trends. AutoTrader.com operates two other auto marketing brands, AutoTraderClassics.com and AutoTraderLatino.com. AutoTrader.com also owns used vehicle management software company vAuto, Kelley Blue Book (Kbb.com) and HomeNet Automotive, a leading provider of online inventory management and merchandising solutions for the automotive retail industry.  AutoTrader.com is a majority-owned subsidiary of Cox Enterprises. Providence Equity Partners is a 25 percent owner of the company and Kleiner Perkins Caufield & Byers is also an investor. For more information, please visit www.autotrader.com.

About VinSolutions
VinSolutions has the leading "Dealership Marketing System" that helps retailers attract, sell and retain more customers profitably. VinSolutions.com was recognized as the 33rd fastest growing software company on the Inc 500 and the company has received multiple accolades in the industry including the Automotive Website Award for best digital marketing platform and the Driving Sales Innovation Cup.  VinSolutions "all-in-one" sales and service marketing system includes digital marketing, search marketing, online advertising, social media marketing tools, mobile marketing, websites, internet lead management, CRM (Customer Relationship Management), Sales force automation, Sales Management and Desking, Appraisal, Finance, Used Vehicle Marketing and Market Pricing, Inventory Management and Distribution, Hand held inventory marketing tools, window stickers, automated video tours, Loyalty Management and Targeted marketing with email, text, direct mail and telemarketing services. The "Dealership Marketing System" has complete mobile integration and is accessible from any mobile phone that has access to the internet including blackberry, Google DROID and iPhone. VinSolutions Dealership Marketing System is installed by their strategic consulting team who specializes in retail strategy and process training for large dealer groups and individual dealerships. VinSolutions is certified by Honda, Acura, GM, Ford, Chrysler, Subaru, Nissan, Infiniti, Mazda, Saab, Mitsubishi, Volkswagen, Volvo, Hyundai and Audi and integrates with most DMS companies including ADP, R&R, AutoSoft and Arkona. VinSolutions also has alliances and integrations with Kelley Blue Book, CarFax, Autodata, RouteOne and DealerTrack. For more information visit www.VinSolutions.com.