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Letter to the Editor

Reynolds and Reynolds Acquires Networkcar and Its Telematics Technology

The acquisition builds on a minority stake Reynolds took in Networkcar in January 2001.

"Networkcar's CAReader tethers automotive retailers to their consumers in a unique and powerful manner," said Lloyd "Buzz" Waterhouse, Reynolds CEO, chairman and president. "It redefines what consumer telematics is all about."

Networkcar offers proprietary wireless telematics technology for collecting and delivering real-time automotive diagnostic data and satellite-based global location services to automotive retailers, vehicle owners, fleets, car companies, and other users of vehicle data.

Networkcar's technology and solutions are on the road today in nearly a dozen states, including California and Ohio. With the acquisition of Networkcar, Reynolds intends to begin a North American rollout to retailers, incorporating the CAReader as a fundamental part of Reynolds integrated CRM suite of solutions.

Networkcar's CAReader's direct path from the vehicle to the retailer and consumer makes possible the following benefits:

• Scheduled Maintenance Notification
• Diagnostic Monitoring
• Emissions Testing
• Insurance Savings.

"Other approaches to telematics focus on in-car entertainment and concierge services with less-clear consumer interest and value," said Dave Dutch, president of Networkcar. "Our research shows the market desires a more car- and data-centric approach, enabling both the consumer and retailer to make better decisions and be better informed. And best of all, once the CAReader is installed, the Networkcar service becomes invisible to the consumer."

At a dealership, a finance and insurance manager can arrange for CAReader to be installed for only a few additional dollars per month.

According to Dan Garretson, senior analyst with Forrester Research, Inc., "Unlike OEM service offerings that require a built-in user interface to support a broad array of telematics services, Networkcar zeroes in on monitoring services that require no driver/vehicle interaction."

Even more important to many consumers, noted Dutch, is the "peace of mind" they receive as a result of the Global Positioning System that's included with the CAReader. This has already provided results for several vehicle owners.

"Over the past few years, CRM has quickly become an integral component of dealership operations, and in an effort to make business operations more profitable for our retail customers, Reynolds embraced CRM and integrated it throughout our solutions," said Waterhouse. "Remote diagnostics will become a valuable CRM solution, with Networkcar's CAReader leading the way with countless advantages to both retailers and end users of the device."

The CAReader is compatible with nearly all vehicles manufactured since 1996, encompassing more than 80 million vehicles already on the road today. With this device installed in a consumer's vehicle, the automotive retailer can provide a variety of value-added services. Consumers who use the service will have their own personalized Web page that contains performance characteristics of their vehicle including operating conditions, mileage and diagnostic trouble codes. Consumers will have a direct Internet link with their automotive retailers who can provide timely e-mail messages regarding engine performance, service opportunities, appointment scheduling and many other services.

According to Larry Maxson, Finance and Insurance Manager at Honda of El Cerrito (Calif.), "Networkcar is a unique product that succeeds in tying our newest customers in sales to our service department. The profit generated in the finance department is just a secondary benefit. The Networkcar service benefits the entire dealership with increased revenues, productivity and customer retention. The service bonds our customers to our dealership creating lifetime customers in both sales and service."

"It's easy to see how valuable this service could be to retailers interested in increasing the efficiency and profitability of their service operations," said Waterhouse. "As a retailer, installation of a CAReader into a customer's vehicle is a boon for the service department. Reports show that over half of CAReader users return to the dealership where they purchased the car and device for service when notified of a problem. That's up from just 23 percent who normally return for service."

The Networkcar CAReader solution is a component of the Reynolds Generations Series, a family of solutions and services that helps automotive retailers and car companies make better use of information, strengthen their relationships with consumers and improve operational efficiencies. The Reynolds Generations Series encompasses more than 100 applications and services relating to all aspects of dealership operations, including Web services, contact management, sales management, finance and insurance, service and parts operations, document management, and business and employee management.

Networkcar, Inc., a wholly-owned subsidiary of The Reynolds and Reynolds Company, is a leading provider of around-the-clock services for monitoring the performance, location and security of consumer and fleet vehicles.

©2002 Collision Repair Industry INSIGHT
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