News Ltd. gangs up with dealers to beat up carsales.com.au
News Limited’s carsguide.com.au is making a big play to take on industry leaders carsales.com.au, announcing a joint venture with Australia’s biggest car dealer groups.
A new company, operating under the Carsguide brand, will be owned by News Limited and a consortium of foundation dealers compromising Automotive Holdings Group Limited, A.P Eagers Group and Trivett Group, plus a number of other dealerships.
The deal means the consortium, which represents 25% of the nation’s dealers, will get a bigger piece of the Carsguide revenue pie.
“It’s significant for us, News Limited communications manager Toby Hemming tells Marketing magazine. “It’s a joint venture where the dealers take revenue from the entire profit. It’s a new product and represents a significant challenge to carsales.com.au. They don’t have any industry buy-ins like this.”
Chairman and chief executive of News Limited John Hartigan called the deal “transformational”.
“This strategic alliance of Australia’s largest print and online automotive brand, and the biggest dealer groups in the country will provide serious, and much needed, competition to the category,” Hartigan says.
“We will be investing in the new company, doubling the number of staff and throwing our combined resources and expertise behind the joint venture, with the intent of aggressively growing the business.”
What do you think, can Carsguide offering car dealers a little bit more break open the category, or is the Carsales site too good? Drop a comment below through your Marketing mag account.