AOL Launches Revved-Up Auto Channel

As part of the content distribution deal, Consumer Reports -- the well-known 63-year old magazine that is published by the nonprofit testing organization Consumers Union -- will supply AOL with its top automotive selections, feature articles, warranty comparisons, advice on safety features and information on car electronics.

AOL members will also be able to purchase Consumer Reports' premium studies on safety ratings and product specifications and guides to buying and selling cars.

Edmunds.com will provide AOL users with information on current average transaction prices for vehicles in a particular market, as well as personalized car loan finance rates based on specific geographic areas. Edmunds.com will also supply product reviews on all auto makes and models.

AOL's agreement with e-commerce product and services provider Autofusion will allow prospective buyers to build, research and compare specifications on individual car makes and models.

Financial details of the agreements were not specified. The new channel, which AOL said builds on previous versions, will be available on its flagship service and its other interactive brands, including Netscape and CompuServe.

Local Flavor

In addition to including the new automotive-related content and data, AOL said it has set up a local resources center on most pages in the channel with direct links to local dealers, a local deal locator and exclusive local deals for AOL members.

The newly redesigned channel will also supply rich media showcases, including three-dimensional views and streaming video on various autos. Moreover, the section incorporates community features, such as message boards, chat and newsletters.

Checkered Flag

"Our members can turn to the autos channel to get accurate information on the true cost of cars, learn about the options they want, and read reviews of new and used cars, all before they go to any dealership," said AOL president Jonathan Sacks.

In conjunction with the launch, AOL also announced it is holding a "Hit the Pits" sweepstakes, in which the winner will be awarded an all-expenses paid trip to the 2002 NASCAR Winston Cup race in Daytona Beach, Florida.

Look Here

With a spate of recent reports indicating that consumers do not view the Internet as a viable purchasing tool for such big-ticket items as automobiles, AOL's emphasis on research and information may be the best way to reach potential customers.

A study released earlier this month by e-business consulting firm Accenture found that 56 percent of consumers wanted to use the Web as a research tool before deciding on a purchase.

Despite the relatively slow growth in the number of auto sales made online, a recent Jupiter Media Metrix and R.L. Polk & Co report concluded that the Web continues to be one of the fastest growing mediums for gathering car shopping information.