When TrueCar president and CEO Chip Perry announced a revamp of the car-shopping site, he failed to mention one big change: layoffs.
According to a source and confirmed by TrueCar, an undisclosed number of the company’s employees — mostly located at its headquarters in Santa Monica — received layoff notices yesterday.
TrueCar, the prolific third-party car shopping site, is changing the way it does business in the hopes of mending dealer relations and reversing the company’s flagging fortunes.
When TrueCar president and CEO Chip Perry took the helm of the site last December, his stated goal was to make amends with ornery partners and bring the company out of a period of turmoil.
There comes a point in our lives when we all fly off the handle. It can happen when we’re still young and ready to believe anything or when we’re old and the voice of those young’uns make us instinctively say nasty, insensitive thoughts.
Temporary insanity comes and goes with the seasons. With that I am about to recommend a
car truckster minivan lame duck vehicle that has a surprisingly good fit for one type of buyer in particular: Those with large families who want a new car but don’t really give a shit about cars.
TrueCar announced Monday that it hired former AutoTrader CEO Chip Perry to help the third-party vendor turn around a turbulent year of departing executives and crumbling business relations.
According to a statement released by TrueCar, Perry will take over for current CEO and founder Scott Painter on Dec. 15. Perry will also be president of the company, a position which was also vacated earlier this year.
“My initial focus will be on TrueCar’s dealer partners – listening to them and finding ways to serve them better,” Perry said in a statement. Painter had a public, messy breakup with AutoNation this summer and a $14.7 million loss in the second quarter.
TrueCar CEO Scott Painter will leave the company at the end of this year, Automotive News is reporting.
Painter announced he was leaving the company after TrueCar announced it had lost $14.7 million in the second quarter on $65.3 million revenue.
“After a decade of building TrueCar from an idea into a public company, I have come to the conclusion reached by many founders and entrepreneurs in my position: It is time for a change.” Painter said in a statement according to Automotive News.
Painter will remain on the company’s board of directors.
A lawsuit brought forward by a group of 100 auto dealerships are alleging car-buying service TrueCar of “deceptive business practices”, reports Automotive News.
The lawsuit claims TrueCar’s advertising, which proclaims transparency in vehicle transaction prices for customers, does not disclose the $299 and $399 dollar fees that are paid by dealers for new and used car sales brokered by TrueCar.
TrueCar CEO Scott Painter said his company will miss expected earnings for the second quarter, and said the company needed a “wake-up” in his call, Automotive News is reporting.
The news sent shares of TrueCar plummeting more than 35 percent. TrueCar closed Friday down 3.81 down to $6.87 per share.
Painter said a lack of marketing was to blame for the company’s struggles in the second quarter, not the recent highly publicized split with AutoNation.
Automotive News has interesting insight into the tenuous, and now soon-to-end, relationship between TrueCar and car dealer-giant AutoNation.
The report details a May lunch between TrueCar CEO Scott Painter, President John Krafcik and Senior Vice President of Dealer Development Mike Timmons, and AutoNation COO Bill Berman and Chief Marketing Officer Marc Cannon. At the lunch, TrueCar executives reportedly said they would require data from all AutoNation sales — regardless if they were generated by TrueCar — for the two companies to continue doing business.
“Over my dead body,” AutoNation CEO Mike Jackson said later, according to Automotive News.
Details between the AutoNation and TrueCar split are becoming clear, Automotive News is reporting.
After yesterday’s announcement that the web service and nationwide dealership chain were splitting up — in which AutoNation laid most of the blame on unreasonable demands by TrueCar during contract negotiations — the company’s respective CEOs have been getting nasty.
“Our partnership with AutoNation just turned into, in a very real sense, a choice for the consumer,” TrueCar CEO Scott Painter told Automotive News. “It really makes them our competition.”
The nation’s largest auto dealer will stop using TrueCar’s lead generation at the end of this month, Automotive News is reporting.
The split is largely focused on the use of customer information and contract demands. AutoNation CEO Mike Jackson didn’t mince words.
“TrueCar has made some onerous demands in its new contract negotiations with us that are unprecedented in my 45 years in business and are unconscionable and unacceptable. We cannot agree to them,” Jackson told Automotive News.
Car buyers are tired of the dog and pony show that goes along with trying to negotiate for a new car and are quickly turning to car buying services like TrueCar as a way to get transparency into the pricing process.
While places like TrueCar will save you a little money compared to just walking in to a dealer off the street, they won’t get you the absolute best price and will do it at the cost of your privacy. TrueCar makes money by charging dealers $299 to $399 per lead once a customer that was referred from them makes a purchase. They gather data from various automotive data aggregators along with vehicle registration and tax sources and perform analysis on it in order to establish an average price paid.
One of the requirements for affiliated dealers is to give them access to their Dealership Management System (DMS) or to manually transmit vehicle sales data to a supported third-party vendor. A DMS is a management system that dealers use to manage customers and vehicles that contains information such as pricing for vehicles bought and sold along with customer details like names, addresses, and social security numbers.
Just like when high fuel prices knocked down the sale price of many a truck and SUV, the current drop in price at the pump is pulling down the prices for many a hybrid, PHEV and EV.
Keep those Benzes, BMWs and Audis in the garage, son: $50,000-plus trucks and SUVs are where it’s at for the ballers and players these days.
Automotive pricing site TrueCar has revealed its IPO price will be set between $12 and $14, bringing the company a valuation of around $1 billion should the price-per-share lean closer toward the top end.