AutoTrader.com Agrees to Buy HomeNet Automotive

[LarryBruce]

@Jeff I understand, I have heard the same things out of a lot of dealers and the same lack of results for a lot of work.

@All - Keep in mind ATC isn't a technology company and it isn't a web marketing company it is at its root a magazine that had a base and too that base online lower its distribution cost and charging more money. So ask yourself what do you think they are really going to be able to do with more technology and more data?

We have all seen many large technology companies in this industry swallow ONE good product or company only to later bastardize it and eventually kill it, what do you think a non-technology company is going to do with 3 of them?

The fact is that this is not about giving dealers a better product or more help, this is strictly about getting to a top line number that makes for a good IPO and the Top cat cashing out leaving whoever is left to figure that out, if they can.

For the money I see dealers spending with ATC you are better off taking that money with a good strategy to eBay motors, the visitors there are far more engaging than ATC for a lot of reasons I won't go into in this comment.

Get out of ATC before you lose more money. It's just like when you got out of the paper you'll tense up in anticipation of the business drop only to find it doesn’t and you'll find a lot for efficient uses for the money you were spending with ATC.

 

[Tammy DeFazio]

@all
I just want to say "thanks" for the positive comments about HomeNet Automotive in general and for the goodwill generated towards our employees during this transition; we appreciate your support. While it is still early, the plan is to remain operating independently,and I am confident (and extremely optimistic and excited) we can find a way to incorporate some of the combined resources to offer/support more robust solutions in the automotive space. The opportunities seem endless when you really think about it; I, personally, will do all I can to ensure all the opportunities are thought out.
Thanks again for your support.

Tammy DeFazio
Director, Client Services
HomeNet Automotive, LLC

 

[LarryBruce]

Tammy did you even read the post or the comments? I had to go back thru and read to see there were any positive comments or support.

Did I miss one?

Is this what dealers can expect the corp. glad hand? Do you really think that if you keep thanking us for our support that somehow you will get it?

I don't understand either of the comments from Homenet.

 

[Tammy DeFazio]

Larry,

I should have been more specific instead of replying in general. I was referring to comments "their employees who have gone above and beyond to exceed my expectations time after time dont get shafted","I hope only the best for my many friends at Homenet thru any changes". It was not my intent to infer that everyone supported the acquisition or even HomeNet in general. I completely understand the frustration and speculation of changes, but as I've said, I'm optimistic some great innovative changes could be introduced into the automotive space with the combined resources.

 

[Todd Mathews]

I apologize for the redundancy on my part here, but it's has to be echoed that again and again. This is move to drive an IPO or in the case of many other large Corp companies is to drive stock prices. I really feel for the folks in the companies being acquired because as in the case of Homenet, they are a first class company with a first class leader in Jesse Bitter (I have know Jesse personally for many years) and we want to believe the honeymoon speeches of how this is good for everyone etc. But my experiences tells me a whole different story and again please just approach it all with your eyes wide open, in the end you may thank me.

Larry Bruce; let's look back at your comments in 2 years within the post and it will prove how on the money you regarding this topic. If anyone wants to bet on that, my money is on Larry.

 

[LarryBruce]

@Tammy – I see now, thanks for clearing that up. I am with you Tammy I hope the employees that worked hard to get Homenet where it is today don't get the shaft, however that is inevitable. Some will get let go some will move on that is the nature of things, good luck to all of them.

I appreciate you optimism although I don't share it.

@Todd – Thanks for the support, it is much appreciated although I don't like being right about things that hurt dealers so much I rather be wrong here, unfortunately ATC’s actions support me being right in this case.

Dealers need to limit their exposure with ATC and now the companies they own as much as they can. Better to do that now and have options than to be deep with this company and have your bill go through the roof and service through the floor then have to scramble put new strategies in place, the name of the game here “DERVISIFY”.

Move some of your budget to eBay and start leaning what it takes to be successful there while you can make mistakes if you are already there put a bigger focus on it.

Look and talk to new inventory export providers while you have time to make the right deal.

Look and talk to new inventory management companies while you have time as well.

Don't wait until the hammer drops be proactive and put yourself in the right position to make a good decision.

 

[dwhitemd]

I have to agree with Larry here. It does seem very disingenuous for a representative of one of the companies involved to jump into this discussion with the "thanks for the support" and "we are looking forward to great things" corporate talking points. To assume that the driving force behind this, and the other acquisitions, was anything other than profit driven is extremely naive. With regard to the comments on the job security of the newly acquired personnel; following the Honeymoon period (9 months to a year) there will a significant number of layoffs. Typically the new ownership looks to keep 10-15% of the original staff - and that's usually the younger, talented, and lower paid employees.

 

[LarryBruce]

Thanks Dave and unfoutunately you're right on the money with your numbers and the layoffs.

 

[Gimme a break]

Larry,

I'm willing to bet that all of your business ventures were profit driven. Or were they philanthropic? It sounds to me like you hsve an axe to grind and are afraid of what the partnerships might do to your business. ATC might be doing this strictly for profit. Does that make them evil? Don't be mad because somebody is trying to build a bigger and better mousetrap. Better...maybe not but only time will tell. You at least have to give them credit for trying.

 

[LarryBruce]

Gimme a break…Really?

First of all coming into a room hiding your identity makes you suspect right off the bat.

Secondly make no mistake every venture I have done has been for profit, there is nothing evil about profit when you provide value that is equal to that profit, and therein lies my issue. ATC has continued to raise prices adding no more value. ATC has continued to try and establish themselves between the dealer and the customer even going as far has siphoning off the dealers own traffic from their websites and making the dealer pay for it.

Provide value consummate to your price and you will never have an issue with me, you can make as much profit as you like as long as I am getting to make a fair profit too.

As for ATC threatening my business well, I don't think we are in any danger of that so no I have no worry about ATC, Homenet, VAuto or Kelly from that perspective.

Give them credit, I would certainly give them credit for trying if that’s what they were doing, their actions in the past and as of late say to me they are not trying at all. However as I have said, I could be wrong and for the dealer’s sake I hope I am, so go ahead ATC prove me wrong no one will be happier to admit it than I will if you do.