EAW  Exclusive Auto World

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EAW - Exclusive Automobile World

E-Commerce in the car trading business/offer to cooperate

Dear Colleague

The leading characteristic of this strategy involves a pan European union of exclusive top class car dealers enabling us to not merely react to the enhanced market transparency created by the Internet, but, to improve our market using it.

As we highly value your expertise, reputation and know-how, we would be pleased if your company were interested to become a partner in the EAW.

The main objective in our strategy is making use of the most advanced Internet-based technologies to avoid loosing market share to the new competition emerging on the Internet. A union of suitable co operating car dealers with the right masterplan of adequate measures will, no doubt, turn a weakness into a strength.

I am sure you have been observing the emergence of similar Internet-based co operations in other sectors, such as the large industrial conglomerates.

At the same time, however, the automobile industry has established very focussed Internet-based dealer-sales structures with the aim the secure the economic existence of individual dealers, to increase revenues and profits and, consequently, enhance future business perspectives. It is therefore safe to say that these co operations are, at present, one of the one of the most important strategies of successful companies looking forward in view of meeting the challenges of intensifying competition, keeping market share and reducing costs.

The Internet has created a level of market transparency unheard of before which in itself has created a "tough competitor", a situation which could make life significantly harder for us all if we do not manage to understand and implement the newly created possibilities.

A state-of-the-art B2B-platform could serve to integrate a large number of car dealers in a union on a basis that the due level of competition between them is maintained but the future sales and purchase potential of each participating dealer is substantially enhanced.

With this idea we may not have found the "Sorcerers’ Stone", but having read the concept set out below we are confident that you will recognise the advantages of this idea.

Before addressing you we have taken the effort to solicit opinions from representative experts in the automobile sector, from banks and from renowned business consultants, all of which have stated that our concept is very advanced and has the potential to be highly successful. We could even become a market leader in this field.

• Quality Logo

All co operating dealers commit, for the purposes of the union, that their offers meet certain requirements. On the basis of these requirements, which will be set out clearly in a contract, we will appear as joint and exclusive group of car dealers.

In order to clearly convey a sense of trust and quality to customers we have sought to develop a brand profile for our group.

• Availability of a complete range of cars

With the assistance of this new B2B platform we will finally be able to offer and sell the complete range of cars of every single co operating dealer, without heavy investment in compatible computer technology – an advantage most OEM – dealers have been enjoying for quite some time.

• Purchase Terms and Conditions

Via the B2B Internet platform the terms and conditions of a sale to another co operating dealer will be fixed in advance. This would enable every participating company to make use at any time of the entire range of cars of all dealers in the group without further discussions. This could result in very substantial additional business for each participating dealer.

• Auctions

The EAW-Group intends to organise special dealer auctions. This should accelerate sales of unsuitable or hard-to-sell cars resulting from re purchase agreements.

• Transport

Our system of transport logistics consists, at present, of more than 60 car transportation companies guaranteeing delivery on time all over Europe at competitive prices.

• Valuations/References

As part of our concept we will seek to contract recognised and acknowledged expert valuers located close to our partners. They can be engaged by either the relevant dealer or the customer to determine the fair market value of the car for a relatively small fee, especially if the sales object is a more difficult case.

• Trading of New Cars

The concept will also provide for a sales strategy for new cars. Exactly coinciding with the lifting of most of those sales barriers unfairly affecting "Grey Market Dealers" we will reach a far better participation in this business. The EAW-group as a whole would become a customer taken seriously by the car companies and we could negotiate more favourable prices by bundling our purchase orders.

The Business To Business platform set out above would serve to implement a car dealer union concept, the establishment of which has failed in the past due to inadequate communication.

We truly believe that the potential of this concept lies well beyond of what we can currently imagine.

From my own personal experience working many years in the industry I know how effective a bundling of purchase power through large corporations or the co operation of individual companies could be. Here is our chance to create a union, who could successfully set new standards.

We are now in the process of allocating sales areas to certain dealers and would therefore be pleased to receive your response on whether your are interested to join EAW in principle by close of business on 31/10/2000.

Please consider carefully, that, by participating in this concept you will be able to avail yourself of a secure and pre negotiated range of cars of car dealers in i.e. Rome, Madrid, Stockholm. Vienna, Paris, Lisbon, London, Hamburg, Frankfurt or Munich and, therefore, you can offer, for example, 3000 rather than, say, 100 cars to anyone customer. This possibility alone may already justify a participation.

It is planned to establish three different categories of dealers, A, B and C. .This would ensure, that differences in size are taken account of and a participation in the group would not become dependant on an individual company’s size. There are, as all of you know, small but highly specialised dealers, whose contribution would be highly valuable in terms of synergy.

If your are genuinely interested we will inform you about further perspectives of the EAW-Group. Of course, your enquiries will treated confidentially.

In case there should be a conflict in respect of allocation of sales areas we will decide on a first-come-first-serve basis.

Attached to this letter you will find a reply-fax. Please send this fax back in any event even if you have no interest whatsoever to join the EAW-group. After expiry of the response date we will contact interested firms one by one for further discussions.

Thank you for you attention so far. I am looking forward to your positive response.

Yours Sincerely

Fridolin Koltes

President
© FK 10-00 exclusive-auto-world

EAW

Exclusive car world

With the functionality of Internet communication Businessmoeglichkeiten in the trade were created, which possible we would still recently not have considered. The innovation strength of an enterprise or an entrepreneurial group will determine very substantially the chances of success of the future.

That autosalon singing reached approximately 30 millions Klicks in the first year of its on-line position in the Internet on its Website and created thus the positive entrance into the age of the e-Commerce.

Who ignores and does not consider such numbers the fact that we stand only at the beginning of a new e-Commerce-Zeitepoche loses the connection to the reality.

But..... so much positive Internet to also bring can. Behind a so unbelievable transparency of the markets is naturally also a large danger. By the easy comparability of the offers internal services, over which the trade could form itself so far, are sudden no more the kaufmotiv. The Internet user uses our service further. It sits however on evening at its PC and looks for themselves there in the Internet the attractive offers out

It could take our service up. It the vehicle visited, it left themselves extensively advised, it possibly also a test run made and about everything directly locally informed which it know themselves wanted.

Now he knows exactly, which vehicle he would like to buy, so that it concerns to it actually only the price. Again he finds the favourable price with a " pseudo dealer " in the Internet, which is located at home in the living rooms a telephone connection, a PC, a printer and a fax has. A mediator, who - more or less intelligently – supply and demand unite.

We examined the scene exactly over months and observed the purchase pattern. In the tendency completely clearly a new opponent appears for the stationary trade, who offers hardly attack region.

The Dienstleister, which helps our customer without financial expenditure to filter the attractive offer. We filtered also the best ones from this scenario. One of it has e.g. 400 vehicles in the Internet offer and realized together with its son without any exhibition, without personnel, without offices, thus almost without costs in the month more than 20 sales.

According to our estimate in some years, this " new way " will again normalize itself, because the buyer recognizes that a large portion confidence is lost to him through the missing conclusion with the trade, because in the long run many have to lose themselves this new Dienstleister as " Schattenboxer " disqualifizieren and nothing.

On the other hand it applies to develop nevertheless synergy potentials also in the Internet, in order to use in this only very heavily in advance the market which can be estimated, the additional chances and to also combine conservative Business high-technical e-Commerce.

Long the " Internet revolution " reached us in our automobile trade and the digital age certainly meanwhile the total happening clearly noticeably also.

The questions, on which we give an answer with the following conception are therefore:

How can we successfully create the conversion and/or the extension in the next 5 years on virtual turnover portions? How can we, despite these new opponents, obtain a market projection, specified before, with which we do not only secure our existences also in the e-Business via Internet, but us even also very strongly from the entire competition take off?

The market is in the change from the salesman to a buyer's market. How can we receive therefore the long-proven and nevertheless the entrance over new " increase in value philosophies " in one differently than so far defined competitive edge to convert?

B2B is called Business ton Business or on German dealers to dealer business.

We had plans for such a business basis already more than 10 years ago. It was at that time however heavy to find a communication form it permitted, without finding to large cost employment a promising form of the co-operation, from which each particular can really only profit. Now this idea could be converted, since a network can be used for communication, in which many ingenious ideas and complex developments is.

The core goal of a co-operation with gleichgesinnten dealer colleagues is, a mark shaping of this group of dealers with with the consumer the confidence to be suggested can. At the same time a dominating offer size, convincing quality standards and a comprehensive European-wide service service.

Over the exclusive autoworld (EAW we will begin a Qualitaetslogo with a high requirement for creation of confidence as marketing instrument.

This Qualitaetslogo may use only one dealer colleague, who joined this exclusive dealer group and which fulfills in addition necessary requirement profile.

You find this requirement profile attached as plant 1.

By this requirement profile excluding vehicles of our dealer group are marked, so that an Internet can recognize user when scanning the sides at first attempt, with which vehicle it into the greatest possible security of this EAW group is embedded

If the user of this Markenlogo on the Internet side clicks, it receives clearly the very advertising-effective statement of the meaning of this Markenlogos and at the same time also an address list of the attached EAW qualitaet dealer.

Also the sales of new vehicles will take an important place in this conception. Also in this market segment we will open, both the mark-free in addition, the mark-bound participants completely new perspectives.

With the " advertising board " of our advantage argumentation in the Internet we send clear signals to the user, without which advantages it does, if it buys or orders the desired vehicle not within this group of the attached dealers.

At the same time the user is to win the realization at the representation of the offer and the detailed descriptions of vehicle that a dealer with this brand name already very positively differs in the offer phase from the remaining offerers.

It will give three categories, i.e. A, B and C in this dealer lesson depending upon assortment quality, degree the willing to cooperate shank and the guaranteeings dealers.

You find the diversification of the individual groups of dealers as plants.

In the first step about 50 exclusive dealers in Europe are to become member of this commercial's group as A-dealers. Over the concept specified before with these ah-change-learn readiness at a large co-operation presupposed.

It is intended that we on European level very closely together to work to be able and each group partner also the offer of the dealer colleague with sell can.

The operability of the Internet platform will be completely uncomplicated. Each member can learn in few days and without larger expenditure with it to deal.

In the result this means that with 50 contracting parties already 2,000 to 3,000 concrete vehicles in the offer stands.

Over our B2B platform, to which each participant receives entrance only over a key code, can work each dealer colleague with two prices; the selling price at the final customers as well as the selling price at the dealer colleagues.

It is clear that the trade prices for the final consumer may not be visible.

This has to the consequence that we will have a smaller trade profit margin with the sales of a vehicle to a final customer from the fahrzeugbestand of a dealer colleague as with their own vehicle sales from own existence with a fully calculated final consumer price. It will come however by the 50-fache offer to clearly more sales conclusions. We will lose less customer, who leaves our house due to a missing vehicle offer again without result.

Like that it is possible that our dealer colleague sells a vehicle from the existence of a colleague into of Paris a vehicle from the existence of the colleague in Munich or a dealer colleague in Stockholm in Stuttgart. Thus also an offer variety is present to the own purchase. Among themselves even also special actions and exchanges can be accomplished.

The variety of the possibilities by our B2B platform exceeds all conceivable, or/however only very with difficulty realizable and organizational hardly managable interaction of an active group. Now that will make the European market for Internet the play meadow of a new entrepreneur generation.

For a type of entrepreneur with distance vision therefore no more will ask itself the question – WHETHER AT ALL – to separate at the most the questions, when and how is to take place a participation in the e-Comerce.

The distribution of the members in the club EAW of the exclusive car dealers will extend over completely Europe. With this accessability on the complete offer of 2.000 – 3,000 vehicles therefore only rarely directly competition develops to the colleague. Even in this case the union is still meaningful, because the world became a pea anyway and the customers by Internet spreading inform can. There agreement makes strong and secures existences

The union of these EAW dealers also very suitably connection finds the at present completely substantial its marketing systems to the lists of actions of the large-scale industry reorganizes. One knows also there, who does not recognize this indication of the time and one does not react with large probability the connection to lose.

Two examples:

Daimler Chrysler, Ford, General of engine, Renault and Nissan winding over common Internet a co-operation already a volume of purchase from over 600 billion DM and reach thereby very positive synergy effects. The Internet conversion grew in the USA 1999 on over 1 trillion DM by 140 %. We believe the entire economy against it " only " around 3,5 %. with this background also with our concept that in this group such strong synergy effects develop, which no " single fighter " can ever reach. In particular auxiliary business will come, without which we do at present without this co-operation.

If they sold for example the vehicle of a dealer colleague from Vienna, start over a routine a short Mailrundruf to our forwarding business organization and have short hand one or more offers for the low-priced transport of the vehicle concerned.

Since we " bring along " with these varieties of attached autocarriers in most cases of speak can, because the respective forwarding business is anyway there in the proximity, our forwarding charges will be generally ever lower than in the case of a single transport.

A further good detailed solution in our concept is the consultants organization

If they sold a vehicle from Rome, Marbella or Amsterdam, our B2B-Plattform offers a number of selected consultants to you for each district. We or our buyers can visit the respective vehicle and let an appraisal provide Thus we limited the risk of wrong descriptions of vehicle completely substantially and it do not remain with the purchase vehicle which one did not see only a completely small residual risk. We have this residual risk in addition, if we visit the vehicle. Hardly a dealer practiced in such a manner investigation criteria like the defaults which can be documented of us for the investigation of a vehicle to the consultants.

Considerably and crucially for the success of EAW among other things the unbelievably large offer of exclusive vehicles, the exzellente logistic perfect representation is in the Internet, the dominance of the offer by our Markenlogo and the strength of the agreement.

There is the old saying " agreement makes strong ". We can represent such an agreement with the common Internet appearance in completely unusually solid form and produce thus for us all a clearly larger demand. We can serve this demand logistically better, obtain many time-saving effects and reduce concomitantly costs.

After the model of the multiple unions in the industry, which trade, with banks, stock exchanges, insurance etc. we become with our project a new variant of the unions in scene to set.

We planned that twice in the year, at the location of a colleague, an information forum is held alternately in each case, with which constructional and creative adjustments of our total conception for discussion are presented.

Here each participant on completely freiwilliger basis has the possibility of participating in our success by the Hereingabe of practical evaluations of our concept so that we guarantee the connection again and again again in this unbelievably schnelllebigen e-Commerce-phase by integration of all substantial conditions.

These conferences will offer also the possibility of becoming acquainted with in the course of the time many of our dealer colleagues personally in order to achieve by means of these contacts a still better co-operation.

Synergy effects are to contribute to it time win to make money to secure and again more fun at the own business have existences.

The costs of a participation in this complex conception are completely insignificant and on the average smaller, than a classified advertisement for vehicle offers in the cars engine & sport.

A detailed preistabelle is attached as plant.

This concept is to help the future in the e-Commerce to master, without complete break with the " old Economy ". Jump up on a driving course, which drives exactly into the direction, into which we together want. Valuable Know how use, without much training money for it to have paid. Active participation in a large thing, without being received thereby also only the smallest risk.

Our economic structure and the trade experience the largest page make-up since 1948. All industries are seized and the magic word are called e-Business or e-Commerce. Projection/lead obtain by innovation and co-operation. Extension of the business around new virtual units to the safety device of the future.

Clearly that there are always winners and losers. The losers will be in this case however those, which due to the conditions in our group no more place can find.

Singen, September 2000

gez. F. KOLTES
© 10-00 exclusive-auto-world

Exclusive car world

Plant II for Internet conception

The group of A of the members represents the group of cores of the EAW – B2B platform. Those in the following specified positions are a condition for the allocation of the A-dealers, because it must be ensured that co-operation among themselves to a large extent smoothly effected and a high measure of reliability of the dealer colleagues is to be out of question.

1. Vehicle presentation
   An own sales exhibition, in which regularly at least 15 interesting vehicles are reproached as offer.

2. Firm image
   A positive firm image is presupposed. Likewise a positive Outfit.
   
3. The offer
   At least 50 vehicle offers with detailed description, which are in the " handling " and are constantly on our B2B-Plattform callable.
   
4. Image representation
   Usually expressive photo material and a detailed description are made available by the issued vehicles.
   
5. Purchase conditions
   On the B2B-Plattform 5% purchase advantage are usually granted in relation to the final customer price. This is to be regarded practically as commission and/or EAW trade discount.
   The selling prices with the offered vehicles are considered as " recommended selling prices ". The own house calculation is released to each member.
   
6. Truth and clarity
   A substantial condition for the smooth e-Commerce on B2B basis is the truth and clarity in the description of these vehicles.

The members must be able themselves to leave among themselves on, what the colleague writes. On this basis sales contracts are written, which are to have legally existence.

For this reason the EAW Haendlerkollege accepts also the purchase of the vehicles against payment under the reservation of the back completion, if the condition of the vehicle does not correspond to the description Such an arrangement is compellingly necessary, so that the reliability of the made data gets high priority. A risk for all involved ones is to a large extent impossible thereby.

7) Exchange of experience / information
The EAW-B2B-Plattform will be in constant advancement, the handling improvement, the result improvement and the adjustment to newest standards.

Highest priority has thereby the simplicity of the operator surface. Around this common work instrument the necessities and requirements for our attached dealers to adapt to be able it is necessary that we mutually suggestions, Tipps and recommendations to give. Only if we constantly and up-to-date combine the needs of all dealer colleagues with the technical facilities necessary for it, we can reach that each individual dealer colleague profits from the empirical values of the group.

Therefore the readiness for mutual the exchange of experience and information has great importance. Ever the EAW

8) Technology
It is desirably however however no obligation that all members fulfill certain minimum requirements at technical equipment.

Purchase recommendations are expressed, so that each member has a good guideline assistance. At the same time we can ensure favorable purchase prices for best quality standard due to the extended knowledge.

9) Warranty with certificate

Each member fulfills the necessary minimum requirements after best knowledge in accordance with our quality statement.

With the EAW quality warranty the standards are defined and by the members themselves regularly practice are adapted clearly.

Deviations from it must be clearly formulated in the description of vehicle.

10) Conversion warranty

With a conversion warranty we would like to facilitate purchase decisions. The regular adjustment of the conditions of such a conversion warranty in a selected dealer commission are specified.

(here exists no obligation to goes through)

11) Service European-wide

Own workshops and/or recommendable framework places are to be to our customers European-wide at the disposal. Each member commits itself therefore to designate the workshops with complete address and a specialization reference, which can be recommended in its catchment area. These enterprises are published on our EAW Side as servicing.

12) Additions from practice

The requirement profile is adapted to the requirements of the market in coordination with the members.

Singen, September 2000 stamp/signature

EAW administration             EAW member

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