Promise to start nationwide automobile after-sales service franchising business and Internet auction for used cars
Promise Co., Ltd. will start automotive-related service businesses by using Car Conveni Club Co., Ltd., which was acquired by Promise's wholly owned subsidiary PAL Life Co., Ltd., and the newly established Car-ichi Co., Ltd.
Car Conveni Club will continue to operate a nationwide franchised chain of car maintenance bases. Car-ichi plans to start an Internet used car auction business that will be open to individuals, used car dealers and anyone else.
1.Purpose of New Businesses | Promise is currently developing a new business model that directly targets the transaction settlement needs of consumers in various aspects of their lives. The objective of the business model, which includes alliances with companies outside the consumer finance industry, is to develop relationships with a broad spectrum of consumers. These new automotive services represent one step toward assembling this business model. | | Promise will target the transaction settlement needs that arise when customers purchase a used car or use the automobile maintenance service. With Do Finance Service Co., Ltd., a company that Promise recently established, the Promise Group has a platform for supplying financial products that are easy to access and use. |
2. Outline of New Businesses | 1)Car Conveni Club Co., Ltd. | | | • Nationwide franchised chain of automobile maintenance service bases | | | | Operates a nationwide chain of franchised total car maintenance centers under the Car Conveni Club brand that offer primarily body work and painting. | | | • Commission of Do Financial Service financial products | | | | Car Conveni Club locations will offer their customers the financial services of Do Financial Service, and accept applications, for automobile maintenance and repair services as well as official inspections, the purchase of used cars and other requirements. | | | | 2)Car-ichi Co., Ltd. | | | • Internet auction for used cars | | | | Operation of used car Internet auctions that are open to individuals, used car dealers and anyone else. The auctions will sell mainly vehicles submitted by individuals. Auction service members, mainly used car dealers, will bid for these vehicles. Used cars will undergo inspections at Car Conveni Club locations and other places to verify the quality of the vehicles submitted for sale. | | | • Commission of Do Financial Service financial products | | | | By cooperating with used car dealers, Car-ichi will offer customers the used car loans of Do Finance Service and accept loan applications. To offer more convenience to used car buyers, Do Finance Service will also offer a loan to replace the remaining loan on a buyer's present vehicle. |
3.Outline of New Companies | 1)Outline of Car Conveni | | | 1.Trade name: | Car Conveni Club Co., Ltd. | | | 2.Principal business activities: | Operation of nationwide chain of franchised car maintenance centers that offer primarily body work and painting (Number of franchise chain: 1,373, as of March 2007)
Sale of financial products for the purchase of automotive services and products, including acceptance of loan applications | | | 3.Establishment: | February 9, 2007 | | | 4.Location of head office: | Tachibana Annex Blg., 2-25-14, Kameido, Koto-ku, Tokyo | | | 5.Representative: | President: Masashi Onoue | | | 6.Paid-in capital: | 10 million yen | | | 7.Number of employees: | 167 (As of April 2007) | | | 8.Principal shareholder and
ownership of shares outstanding: | PAL Life, 100% | | |
* Car Conveni Club plans to start offering Do Finance Service financial products in July 2007. |
| 2)Outline of Car-ichi | | | 1.Trade name: | Car-ichi Co., Ltd. | | | 2.Principal business activities: | Internet used car auction business
Sale of financial products for the sale and purchase of used cars, including acceptance of loan applications | | | 3.Establishment: | March 2007 | | | 4.Location of head office: | 3rd floor, NS Blg., 2-16-4, Higashi-Nihombashi, Chuo-ku, Tokyo | | | 5.Representative: | President: Seiji Urita | | | 6.Paid-in capital: | 609 million yen | | | 7.Number of employees: | 22 (As of April 2007) | | | 8.Principal shareholder and
ownership of shares outstanding: | PAL Life, 100% | | |
* The Car-ichi Internet used car auctions are scheduled to begin in July 2007. | | | | Car-ichi plans to begin handling the financial products of Do Financial
Service at the same time. |
4. Business Plan of New Companies | 1)Car Conveni Club | | | At the fiscal year ending December 2009, the company planned operating income of 5 billion yen and operating profit of 0.8 billion yen. | | 2)Car-ichi | | | At the fiscal year ending December 2009, the company planned operating income of 3 billion yen and operating profit of 1.3 billion yen, run in the black on a single-year basis. |
This news release has been translated from the original Japanese document released on May 1, 2007, for reference only.
In the event of any discrepancy between this translated document and the original Japanese document, the original document shall prevail. |
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