Dealer investors have raised $20m to pave the way for a new joint venture between automotive portal CarsGuide and Cox Automotive Australia. The partnership, that will see a large number of Australian owned Dealers invest in a joint venture with Cox Automotive, is one of the most significant events to take place in the Australian automotive retail industry.
Existing dealer owners of CarsGuide negotiated to buy out News Corp, which holds a 50% share in One Way Traffic Ltd, the company under which the CarsGuide business is conducted.
The $20m was raised by newly formed entity DealerMotive. Dealers saw the clear benefits of being involved in a transformative new venture offering services for every aspect of the automotive ecosystem and were quick to help raise the funds.
59 Dealer Groups representing probably 600 dealerships around the country are expected to participate in the formation of the joint venture, which is expected to be finalized prior to the end of the year, after going through the necessary shareholder and regulatory approvals.