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R50-million e-commerce investment for motor industry

Three leading organisations in the SA information technology, vehicle finance and automotive industries have joined forces to develop a local automotive e-business portal, believed to be the first of its kind in the world.

The R50-million strategic venture involving the Retail Motor Industry (RMI), Dimension Data and WesBank, will provide business-to-business and business-to-consumer e-commerce services.

"The portal will be a powerful, fully transactional solution which offers real value to the entire motor industry and their customers," says Derrick Dixon, CEO of the RMI. The RMI is the largest representative body in the R120-billion automotive industry, following the amalgamation of the Motor Industries` Federation (MIF) and the SA Motor Industry Employers` Association (SAMIEA) last year.

"For the industry itself, the portal will enable all players from the major manufacturers to the smallest dealers and businesses offering support services, to embrace the new e-business economy.

"In the second stage, the portal will offer consumers access to RMI dealers and suppliers nationally through a one-stop online `shop`. They will be able to buy vehicles; finance and insure them; arrange services and repairs; purchase accessories and tyres and do a myriad other vehicle-related tasks - all electronically.

According to Dixon, the SA automotive industry is ideally positioned to implement a cross-industry, inclusive project of this nature.

"The SA market is relatively small, yet we have access to world-class IT skills, financial resources and motor industry knowledge.

"E-commerce will inevitably revolutionise the motor industry. By partnering with Dimension Data and WesBank, the RMI will enable its members to become participants, rather than bystanders, in change," he adds.

Dimension Data`s i-Commerce division`s extensive infrastructure and experience in portal development and business-to-business platforms will be harnessed to develop and implement the e-commerce solution.

"Trading communities have emerged as the core element of successful e-business," says Jeremy Ord, Executive Chairman, Dimension Data.

"Dimension Data and WesBank, both acknowledged leaders in their respective industries, and with their close links to the motor sector, are well placed to launch SA`s automotive portal using the extensive RMI network to involve the entire industry. Indeed, this initiative brings together the most credible and logistically sound partnership to act as an impartial facilitator for this e-venture," he adds.

Dimension Data is already involved in various e-commerce initiatives in the automotive sector. The company has a dedicated automotive business unit, of which Auto-Mate - a company specialising in automotive dealer management systems - is a key element. Auto-Mate has close working relationships with more than 700 SA motor dealers, making it the leader in dealer management systems.

Ronnie Watson, CEO of WesBank says WesBank`s core strategy has always been to provide vehicle finance and insurance services at the most convenient point - the dealer showroom floor. As a result, WesBank has enjoyed a close working relationship with the motor industry for more than 20 years.

"As we were the first financial institution to provide instance finance facilities within motor dealerships, it`s a natural progression for WesBank to take the lead in assisting the motor industry to establish a virtual point of sale option.

"Our focus remains consistent in developing products and services which support the motor industry, as we see this venture making it possible for all industry players to become part of the new e-economy," Watson concludes.

Chris de Kock, senior executive of the company formed to house the venture adds, "my team is committed to working closely with the industry to ensure that the e-commerce infrastructure adds real value to dealers, suppliers and their customers".

Commenting on the e-commerce venture, Brand Pretorius, CEO of McCarthy Retail says: "We recently announced the establishment of Procuretrade, our own business-to-business electronic trading hub and our business-to-consumer offering Call-a-Car, is a well-known success story. We welcome this new venture and believe it can add value to our own network."

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Dimension Data Holdings Limited

Dimension Data Holdings Limited is a global network integration and e-business enabler operating in 36 countries on five continents. The Group`s service offerings range from network integration and management to the integration of technology channels and applications to enable business-to-business e-commerce. The Group has achieved a compound annual growth rate of 98% in turnover and 57% in headline earnings per share over the past five years.

Dimension Data i-Commerce

A division of Dimension Data Holdings, Dimension Data i-Commerce focuses on the transition of customer organisations into interactive commerce businesses. This is accomplished by assisting corporations to achieve multiple, integrated channels for customer and supplier interaction.

WesBank

WesBank has its roots in South Africa`s first financial institution to specialise in vehicle financing. It continues to be the leading vehicle finance institution in South Africa with a dominant market share approaching 35% of the big four banks. WesBank is also involved in the automotive industry through joint finance ventures with most leading motor manufacturers and major dealer groups, and owns a number of companies that form an integral part of the motor industry.

The Retail Motor Industry (RMI)

Launched in November 1999, the RMI is a product of the restructuring and amalgamation of the Motor Industries` Federation (MIF) and the SA Motor Industry Employers` Association (SAMIEA). Its vision is to be a proactive, relevant employer organisation that is recognised both as the lead voice in the retail motor industry serving the needs of its members, and for its key role in enabling motor traders to deliver top class service to motoring customers in southern Africa.