Autobacs Cars and Otron are deepening their collaboration and aim to create a new used-car distribution ecosystem that connects purchasing, vehicle preparation and logistics within the group. Their collaboration, which leverages the strengths of both companies, is advancing through concrete initiatives.
The Autobacs Group is developing a new business model to complete used-car distribution within the group by linking Autobacs Cars, which operates a vehicle purchasing and sales business, with Otron, a used-car retailer whose strength is in-house financing. The stated aim is to integrate vehicle purchasing, preparation for sale, logistics and sales to create a used-car distribution ecosystem.
Autobacs Cars has built its strength in “the ability to gather quality vehicles,” while Otron’s strength is “the ability to increase vehicle value and deliver vehicles to customers.” Combining these strengths is expected to enable the group as a whole to create new value.
As a first step in the collaboration, Otron is using Autobacs Cars’ shared inventory system to purchase several dozen vehicles directly each month. By avoiding auctions, it is reportedly achieving efficient sourcing while limiting the impact of price competition and winning fees.
Information on Otron’s sales needs is also being used at vehicle purchasing sites. The existence of demand within the group for a vehicle’s eventual purchaser has added a new valuation criterion. This is expected to enable the appropriate assessment of vehicles whose value was previously difficult to evaluate, while optimizing both purchasing competitiveness and sourcing costs.
In the future, Otron plans to consistently handle maintenance, bodywork, detailing and photography at its factories, thereby improving the speed and quality of vehicle preparation, while also expanding collaboration in logistics. The group is also considering building a cross-group delivery network and evaluating the value of accessories, with stronger coordination across the entire value chain expected through the use of IT and DX infrastructure.
As a future target, Otron has set its sights on sourcing 30% and 50% of its purchased vehicles through Autobacs Cars. Autobacs Cars is stated to be pursuing a new system that shares inventory information and sales needs within the group and distributes vehicles to the sales channels where they can generate the most value.