Forza, a group of auto-retailers which calls itself a "vertically integrated e-commerce based auto retail and service company" listed in the industrial motor sector of the JSE today.
The group consists of two BMW dealerships, a second hand dealer, two autobody shops, a customisations workshop and an industry wholesaler. The company says it will leverage these existing businesses through an aggressive Internet strategy with its Forzaweb.com site. The site is to contain full e-commerce capabilities to service its community, which will be provided with chat lines, loyalty programmes and e-mail newsletters.
The cash raised by listing the group will be used to expand its operations, not only by means of physical dealerships but by establishing "virtual vehicle outlets".
"The new group structure will add value to the operating capacity of each business unit by optimising potential through the IT platform developed by the group," says MD Ian Bell. The infrastructure for the Web site project was developed in collaboration with e-commerce developers Apshai.
The Internet strategy seems to be based on figures quoted in an industry overview Forza provides in its pre-listing statement. It says that 25% of all motor sales in the US for 1998 were influenced by Internet marketing and that Internet sales will dominate the market by 2002.
But the Stock Exchange has shown little faith in another company that plans to profit from this market. Oxbridge Online, a self-described company of motoring economists, plans to create an Internet motoring hub by providing content and services to motoring enthusiasts. It also wants to sell financial services and eventually vehicles. After its reverse listing into the Bivec cash shell, Oxbridge saw its price fall from 140 cents to the 90 cent level where it has been trading ever since.
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