In an industry first, by integrating the data, products, services and technology across its portfolio, the Group will connect car maker, financiers, dealer and consumer in the most efficient way possible. An essential component is connecting finance data, the core thread of new and used vehicle sales. Seamlessly integrating this will unlock the barriers to offering a complete ‘omnichannel’ customer experience – blending physical showrooms and the virtual world – from first sale, through aftersales and re-sale.
The commercial gains on offer are vast. Based on the 77 million new cars sold globally in 2020, with a value of $2.5 trillion**, a 1% shift in ecommerce sales would equate to $25 billion in revenue. And that’s without factoring in the potential of global used car sales – the forecast for Europe in 2025 alone is €357 billion*.
The Automotive Transformation Group is also looking to help its customers to improve their profitability. By leveraging its products and services to cut transaction times and reduce sales process costs, the industry could generate an additional £2.2 billion per year in global profitability based on an extra £142 per new vehicle sale.***
The new Group already handles one transaction every 3.5 minutes ($4.25 billion annually) and has an unrivalled experience and operational scale in the industry. The company serves more than 20 car manufacturers in over 10,000 locations across 96 countries.
Commenting on the launch of the Automotive Transformation Group, Chairman David Riemenschneider said: “The digitalisation of the sales process is advancing at an unrelenting pace. The Automotive market, which is one of the largest in the world, has lagged other sectors in terms of the speed of transition to online sales, but that is changing rapidly. Until now, the cost and complexity of integrating each element of an online and offline experience into a brand consistent omnichannel one, has prevented it being delivered at scale. The Automotive Transformation Group aims to change that. By joining up the dots we will enable car manufacturers, financiers and retailers to unlock the huge potential and efficiencies in today’s sales process and overall value chain. And now is the time to act.”
CEO Christian Erlandson added, “Since we announced the merger between Autofutura and GForces, we have been engaged in strategic discussions with some of the biggest players in the industry. This demonstrates just how dynamic the automotive industry is and how fast it is shifting towards digitalisation. We offer something truly unique. By connecting vehicles and consumers, serving the right offer, at the right time, to the right customer and then facilitating the seamless transition from one vehicle to another, we are streamlining the customer journey, right from the first transaction. We believe the companies which we support will not just have happier, longer standing customers, they will also be even more successful as a result of the substantial efficiencies they have achieved.”
*, **Car sales and forecast data (Frost & Sullivan, May 2021)
***Calculations based on Automotive Transformation Group proprietary UK retail industry calculations and 2020 global new car sales (77 million per year)
SOURCE Automotive Transformation Group