ADP Dealer Services will retain the dealership management system business of 413 Saturn dealerships. General Motors is informing Saturn dealers today that ADP will continue to provide them a system, but dealers will switch to a newer system with more features called w.e.b.Suite 2007.
This migration will begin in the third quarter of 2009 and could take nine to 12 months to complete, said Marty Raymond, GM’s director of global retail programs. Saturn dealers have been using an older system that ADP purchased from EDS Corp. in 2004.
This is a victory for ADP Inc., of Hoffman Estates, Ill. ADP gets to keep the Saturn business, which it was going to lose to archrival Reynolds and Reynolds Co.
A ‘very strong endorsement’
The GM Integrated Dealer Management System program allows dealerships to contract directly with GM, rather than with a vendor. The program gives dealers month-to-month contracts, stable pricing and a volume price negotiated by GM. Reynolds and GM were embroiled in a breach-of-contract lawsuit when Reynolds bowed out of the Integrated Dealer Management System program in February. An out-of-court settlement reached April 3 stipulates that Reynolds cannot provide a system to Saturn dealers.
The 413 Saturn dealerships will contract directly with GM, and ADP will equip stores with its w.e.b.Suite 2007 system. “This is a very strong endorsement that GM’s” Integrated Dealer Management System “is alive and well,” Raymond said. “This was a Saturn decision, not a GM decision.”
The final decision was made by the Saturn Franchise Operations Team, made up of dealers and Saturn executives. The team considered all three GM-approved Integrated Dealer Management System vendors: ADP, Quorum Information Technologies Inc. and AutoSoft International Inc. The team also considered contracting with system vendors outside the Integrated Dealership Management System program but decided to remain in the GM program, Raymond says.
The Saturn dealerships will be calling the same ADP help center, said Byron McDuffee, an ADP vice president in charge of the Saturn dealership business. “We are ecstatic about being able to continue service to the Saturn dealerships,” McDuffee said. “This will be a very controlled project. It will be a 12-month migration.”
New features will be available
Saturn dealers will continue to use the same parts ordering system, he said. Before ADP begins the dealer migration to the w.e.b.Suite 2007 system, it will take the existing Saturn parts ordering system and integrate it with w.e.b.Suite 2007, McDuffee said. He did not know how long that will take.
Once Saturn dealers begin using w.e.b.Suite 2007, they will have available to them products such as ADP’s network phone system that are unavailable to them now, McDuffee said.
Having Saturn dealers switch to the newer system will be particularly helpful to dealers who have Saturn and additional GM franchises. They soon will have to use only the one ADP system.
By Ralph Kisiel
June 13, 2008
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