Toyota Financial Services (TFS) has partnered with DaimlerChrysler Services (DCS), Ford Motor Credit Co. (FMCC) and General Motors Acceptance Corporation (GMAC) in a new company called RouteOne. The joint venture, created to develop a system to enable dealers to better manage the credit application process, marks the first time Toyota has partnered with DaimlerChrysler, Ford, and General Motors on a project in the captive finance arena.
DCS, FMCC and GMAC officially formed RouteOne in April. TFS recognized the benefits the system could provide for its Toyota and Lexus dealers and consumers and elected to take an equity stake in the company.
"This venture will enable us to work with our new partners to create an improved credit application system for thousands of dealerships nationwide," said George Borst, president and CEO of TFS. "We continually strive to find better ways to service our Toyota and Lexus dealers and to better serve consumers who finance or lease our vehicles, so we opted to enter this venture to benefit our dealers and customers and simplify the car-financing process."
TFS has taken a 10 percent equity stake in RouteOne. Each of the Big 3 automakers holds a 30 percent share. Toyota did not disclose its investment.
The proposed system's features include credit application functionality that is open to multiple finance sources, including banks and credit unions. Dealers who have multiple brand franchises will get the added benefit of using a common system across all of their brands.
RouteOne, headquartered in Southfield, Mich., intends to launch the new product in 2003.
"We're delighted that Toyota Financial Services has elected to take part in this venture," said Mike Jurecki, CEO of RouteOne. "Our discussions with TFS have been entirely positive. They share our views regarding the need for a solution like this and understand the importance of designing and building a system for the dealer and F&I manager."
Mike Groff, TFS vice president of planning and development, will lead the TFS team on this project. Borst will serve on RouteOne's Board of Directors.
About TFS
TFS, the finance and insurance brand for Toyota in the United States, offers retail auto financing and leasing through Toyota Motor Credit Corp. (TMCC) and extended service contracts through Toyota Motor Insurance Services (TMIS). Lexus Financial Services is the brand for financial products for Lexus dealers and customers.
TFS currently employs more than 2,600 associates nationwide and has managed assets totaling more than $36 billion. It is part of a worldwide network of comprehensive financial services offered by Toyota Financial Services Corp., a whollyowned subsidiary of Toyota Motor Corp.
About RouteOne
RouteOne was formed by DaimlerChrysler Services, Ford Motor Credit Co. and General Motors Acceptance Corp. in April 2002 to improve the credit application management process for automobile dealers, their customers and participating financial institutions.
The joint venture is developing a Web-based system that will provide a common data highway for the exchange of credit application information and credit decisions between dealers and finance sources, including captives, banks and other financial institutions.
