Economy cars account for about 60 percent of all vehicles sold in South America. This focus on value has made the region an ideal market for Web-based dealers. Because tax incentives enable buyers to negotiate a better price for cars purchased online, rather than at traditional dealerships, online prices can be significantly lower. And the supply-chain efficiencies made possible by the e-commerce business model make those vehicles even more affordable.
When this automaker first launched its virtual dealership, the Web site proved so popular that, within a year, nearly 70 percent of the sales of its most popular model were made via the Internet. Not surprisingly, this success encouraged many of its competitors to beef up their own online initiatives.
To maintain its competitive advantage, the company turned to EDS to help it develop an even more comprehensive Internet sales tool. The automaker’s goal was to enhance the customer’s shopping and buying experience through a wider selection of vehicle models and buying tools, while more deeply integrating the Web site with the company’s internal invoicing, production and logistics functions to make the entire process even more cost-efficient.
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