ADP Acquires EDS Automotive Retail Group Unit
DETROIT--Electronic Data Systems Corp. announced Thursday the sale of its Automotive Retail Group unit to ADP Inc., reported Automotive News. Financial terms weren't disclosed.
DETROIT--ADP Inc.'s Dealer Services Group announced today the purchase of Electronic Data Systems Corp.'s Automotive Retail Group. Financial terms were undisclosed.
The Automotive Retail Group, based in Troy, Mich., supplies dealer management systems to about 900 new-car dealerships. It has been the main DMS provider for Saturn since 1988. Automotive News reported that ARG has 5 percent of the market for DMS vendors, according to the National Automobile Dealers Association. ADP Dealer Services Group and Reynolds and Reynolds Co. are the two largest U.S. DMS providers.
"Our dealership customers will continue to have a partner with the right solution, long-term vision and ability to invest in the business, while EDS continues to sharpen its focus on the manufacturing industry's core outsourcing opportunities," said Darl Davidson, EDS' vice-president of the U.S. manufacturing industry. "With ADP, our ARG customers will join a company that shares our culture of exemplary customer service and has a proven product development strategy."
ADP and Saturn will continue migrating the Saturn Retail Systems application suite to a centrally hosted environment. This move makes GM the first U.S. automaker to to move an entire division's retail community to a better ASP model, said ADP.
ADP will maintain ARG as a separate unit in Troy, Mich., and the transition to ADP will be seamless, said Mike Martone, president of ADP Dealer Services.
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