By on July 10, 2015

truecar-screen-1

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.”

Automotive News details the dust-up between AutoNation and TrueCar as a war fought over customer data. Roughly 3 percent of AutoNation’s sales could be directly attributed to TrueCar leads, AutoNation CEO Mike Jackson told Automotive News. TrueCar asked for data on all of AutoNation’s 550,000 annual car sales.

“It’s none of their business,” Jackson said.

TrueCar may have asked AutoNation to comply with rules it enforces with other dealers.

“This isn’t AutoNation dropping TrueCar,” Painter told Automotive News. “This is a very deliberate step on our part. We went to them and said, ‘You must comply with the rules.’”

The added layers of intrigue come from the quickly intersecting business models by AutoNation and TrueCar. TrueCar is rapidly developing dealer-esque services, and AutoNation announced last year they’d move away from third-party vendors like TrueCar to develop their own web-based lead generation.

TrueCar has been beset with several setbacks in recent years, and its customer data collection has come under fire, as well.

 

Get the latest TTAC e-Newsletter!

Recommended

9 Comments on “Details of AutoNation, TrueCar Split Coming into View...”


Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • lstanley: I love anecdotes because they prove nothing, but the only guy at the c-store this morning not wearing a...
  • deanst: For some reason their look reminds me of Hans and Franz from SNL.
  • slavuta: Cheapos. Couldn’t they price Mexican-made sedan just under 20K????
  • Art Vandelay: I’ll not have you sullying Beavis and Butt-Head with this nonsense. (Incidentally, they are...
  • spookiness: As a 1-person household it’s on my shopping list. A slightly used CX-5 is also something I’ll...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Matthew Guy
  • Timothy Cain
  • Adam Tonge
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber