Cox Enterprises, the US$18 billion-turnover group built on newsmedia and internet, is buying News Corp's CarsGuide online classified share as part of a move on Australia.
News Corp Australia will sell its 50 per cent of the five-year-old auto website into the new Cox Automotive Australia, formed from the merger of Cox's software provider Dealer Solutions and Manheim vehicle remarketing businesses and subject to regulatory and legal requirements.
President of Sandy Schwartz says Cox Automotive has identified Australia and New Zealand as growth markets. "With CarsGuide, Dealer Solutions and Manheim - like their US, UK and European counterparts - Cox Automotive Australia will be able to connect their customers to an unrivalled suite of the most powerful solutions in the automotive marketplace, in a truly differentiated way," he says.
Mannheim ANZ chief executive Campbell Jones says significant investments by the parent company - including acquisition of Dealer Solutions earlier this year - signalled its intent to replicate its global solutions within Australia and New Zealand: "Today is a watershed moment... as we announce plans to strategically combine CarsGuide with Dealer Solutions and Manheim."
Cox Automotive Australia will be a partnership with Dealer Solutions, Manheim and many members of the motor dealer industry, who were News' partners in CarsGuide.
"We can simplify the trusted exchange of vehicles and maximise value for the entire automotive industry, especially vehicle sellers, buyers, dealers, manufacturers and fleet, leasing, finance, insurance and rental companies," says Schwartz.
CarsGuide chief executive Lauren Williams says major changes within the automotive landscape are creating "vast new opportunities and formidable barriers to success" that did not exist a few years ago: "Cox Automotive Australia will exist to empower each of our customers to thrive in a rapidly changing automotive marketplace."
Globally, Cox Automotive says it seeks to transform the way the world buys, sells and owns cars with digital marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers and manufacturers. Its interests also include Autotrader, Kelley Blue Book and NextGear Capital. It is a subsidiary of Atlanta-based Cox Enterprises, which employs 55,000 through subsidiaries which include Cox Communications and Cox Media Group.