Aiming to collaborate on the development of new digital tools, automotive retailer AutoNation has acquired a 6.1% minority ownership stake in automotive digital marketplace TrueCar.
The acquisition will enable the companies to collaborate on providing new ways to improve the experience of buying and selling vehicles, the companies said in a Tuesday (Nov. 15) press release.
“We believe that TrueCar, with its leading digital marketplace, is well positioned to enhance the digital car buying experience and provide personal transportation solutions that are easy, transparent and customer-centric,” AutoNation CEO Mike Manley said in the release.
The announcement comes about three weeks after Manley credited AutoNation’s omnichannel capabilities for helping the company meet the demands of today’s macro environment and drive cost efficiencies during the quarter ended Sept. 30
“Over 50% of our unit sales originated on our digital channels for the quarter, and I think we’ve built and continue to build a compelling customer value proposition through the combination of our digital tools and our physical assets,” Manley said Oct. 27 during AutoNation’s quarterly earnings call. “I think that’s critical, really, the combination of both of those things.”
As digital automotive platforms evolve, they will increasingly remove complexity from the process of shopping for a car, TrueCar Senior Vice President of Business Development Alain Nana-Sinkam told PYMNTS when interviewed for the report, “Reshaping Global Business With Connected Vehicles,” a PYMNTS and American Express collaboration.
One of the biggest opportunities in the automotive industry will be development platforms that translate customers’ needs into features they may not fully understand, Nana-Sinkam said.
With the new investment from AutoNation, the two companies will work together to leverage emerging technologies to enhance the digital car buying experience, TrueCar President and CEO Mike Darrow said in the Tuesday press release.
“Our companies believe this opens the door to an opportunity to collaborate on ways to provide a superior digital buying and selling experience for consumers,” Darrow said in the release.
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