Headline Feeds
Online auto classifieds site
AutoTrader.com said Tuesday
that it has inked a deal 
to host the used automobile search platform
of FordDirect.com,
the Internet venture of participating Ford dealers and Ford Motor Company (NYSE: F).
Under the new alliance, FordDirect car dealers will now have their used car inventories available to consumers on both FordDirect and AutoTrader.com. The new agreement doubles the number of online offerings FordDirect dealers have at their disposal, the company said.
AutoTrader.com will maintain the used car inventories and supply the technology. According to FordDirect, AutoTrader.com generates 5 million unique visitors a month.
"With 40 to 45 million used car sales a year in the U.S., the potential is huge," FordDirect chief executive officer Devon Cohen said.
Additionally, shoppers looking for a new car on AutoTrader.com will now also have access to the same offerings found on FordDirect. AutoTrader customers will also be able to access the used car inventories of the FordDirect dealers.
Dealers Unimpressed?
According to research firm research firm J.D. Power and Associates, more car dealers use AutoTrader than any other used car site. However, a recent study conducted by the firm found that dealers do not see the Internet as a significant boon for luring car buyers.
The report found that dealers tend to view car buyers who make initial contact with them over the Internet as "fickle customers who contact multiple dealers in search of unrealistic discounts."
At the same time, the study -- an annual survey of dealer satisfaction with online buying services -- said that car dealers are turning to the Internet more, with 61 percent signed up with at least one independent online buying service. A year ago, the figure was 55 percent.
Keeping Tabs
In fact, the online car sales competition is beginning to heat up. Several weeks ago,
General Motors (NYSE: GM) announced a multi-million
dollar marketing and advertising alliance with AOL.
In February, GM inked a deal with Autobytel.com to test an online shopping system that will show consumers which cars are available for purchase in their area. In May, the automaker said it would form a partnership with its network of dealers to build a Web shopping site called AutoCentric, which will offer GM cars as well as other brands.
Launched in August 2000, FordDirect began operations in December in New Jersey and has since expanded on a state-by-state basis to include 21 states. The company said it expects to be in every state sometime in 2002.
Info Please
Both Ford and GM have increased their efforts at making it easier for consumers to quickly find the information they need to research their car purchases.
Ford refers customers to Yahoo! Autos
for independent reviews, while GM BuyPower partners with Kelley Blue
Book's KBB.com to link information
seekers to local dealers.
Talkback: 
