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Letter to the Editor

ChoiceParts to Pilot with Hyundai

Chicago, Illinois -- ChoiceParts has announced that it will partner with Hyundai Motor America to pilot the ChoiceParts e-commerce solution. ChoiceParts, which was founded via a partnership among automotive and collision industry leaders CCC Information Services Inc., the Reynolds and Reynolds Company, and the Dealer Services and Claims Solutions Groups of Automatic Data Processing Inc., will begin contacting dealers within the pilot area in February, 2001. The pilot period is currently scheduled to last for ninety (90) days.

"We were impressed with the value that ChoiceParts offers to our dealers," stated Frank Ferrara, Vice President of Parts for Hyundai. "The key to ChoiceParts is its integration into the dealer's existing DMS system. With no new workstations to buy, faster turnaround in customer service times, and greater productivity at the parts counter, we have every belief that the pilot test will be a success."

ChoiceParts is currently involved in a lawsuit against the Big Three automobile manufacturers. Note: See February 2001 Publisher's Page for INSIGHT's analysis of the problem.

"Once implemented, the ChoiceParts solution will help Hyundai dealers improve customer satisfaction through increased same-day parts availability," stated Chan Galbato, chief executive officer, ChoiceParts. "Hyundai will also be able to manage its supply chain more efficiently through timely and accurate retail information. Additionally, Hyundai gets the benefit of increased availability from its counter personnel, increased profitability due to time savings and the integrated network of 10,000 existing inventories. We anticipate a mutually beneficial commercial relationship with Hyundai after the pilot period is over."

Hyundai was the first automotive manufacturer to offer an internet-based electronic parts catalog and order system. The ChoiceParts solution is a natural progression in collaborative parts supply chain management.

The solution, which can be integrated into Reynolds and Reynolds and ADP computer systems, provides value to every parts exchange between buyers and sellers. ChoiceParts software surveys its network and rapidly locates and orders parts needed, thus providing a higher satisfaction rate across the automotive and collision repair industries. Additionally, the ChoiceParts solution virtually eliminates phone or fax transactions and manages the parts ordering workflow.

Publisher's Note: While litigation between ChoiceParts and Ford, GM, and DaimlerChrysler continues Hyundai dealers and collision repairers will be offered the first opportunity to participate in the rollout of ChoiceParts' new program. We have to admire the chutzpa of ChoiceParts as its team goes around the Big Three to partner with the 400+ Hyundai dealers.

While the market for Hyundai crash parts is somewhat limited as compared to the Big Three, it will undoubtedly provide a testing ground for the ChoiceParts system.

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