Annual General Meeting - June 22, 2007
Offices throughout US and Canada In Jan. 2006, selected as the new
with 110 employees
technology choice under the GM
Our Focus IDMS program in North America
XSELLERATOR™ & XPRESS In Nov. 2006, selected as
A dealership and customer Microsoft strategic partner for the
management software that North American automotive market
automates, integrates, and – the “recommended” system
streamlines every department in a DCX Integration in Testing with
dealership. Pilot Dealer.
The best Windows-based, fully- 3rd largest supplier of Dealership
integrated automotive dealership Management Systems to GM
management software on the market dealerships in Canada (20%) –
today. 200 installed Dealership rooftops
Product Value - $100 Million +
23,000 new car dealers in North America
GM – 8,000 dealerships Other OEMs
Quorum’s DMS Market-Entry Strategy…
Highly concentrated market - Reynolds & Reynolds (R&R) and ADP account for
roughly 80% of the N.A. automotive technology market.
R&R has recently been purchased by UCS (3rd player in U.S. 8%) in a $2.8 billion
(3X sales) all cash deal. UCS like R&R and ADP sell a 25 year old technology platform.
One Integrated System
OEM Business Rules
Single Customer and Vehicle Database
Sales Service Parts Accounting
Bottom Line for a Dealer
XSELLERATOR Test Case – Brian Finch’s Dealership
Earnings increased by over 130% over last 3 years
(switched from R&R to XSELLERATOR in 2003)
Some Documented Direct XSELLERATOR Benefits
IT costs reduced by 50% $ 45 K
Staff 4 x 40 K $160 K
Increased Customer Pay 10 % $195 K
“The efficiency of many managers and staff has been improved by
an amount which cannot be measured, but has a value to the
GM’s IDMS Solution – Benefits for Quorum
Validates our product as the right choice for new technology in DMS
Billing and contracting process through GM eliminates credit risk
Assures a road map to cash positive operations
Execute on IDMS integration plan to build multiple B2B Integration
points with GM (Quorum paid to build Integration)
Allows us to leverage GM Communications and Field Force to provides
market presence and recognition (~ $20 million plus)
GMAC provides special financing option for dealers to purchase
Opens many other opportunities with other OEM’s (Chrysler, Ford,
Imports) and other players in DMS
Microsoft’s Strategic Relationship
November 8, 2006 – Quorum and Microsoft announced an
expanded strategic relationship with Microsoft’s dealership
management solutions initiatives
According to Mr. Reed, Director, Automotive Retail Solutions;
“Quorum’s XSELLERATOR DMS solution already provides an innovative
basis for dealership solutions and they are committed to providing
improved value to dealerships by integrating existing and future
Microsoft products into its DMS offering. Microsoft strongly supports
Quorum in the marketplace and encourages dealers to move to this
progressive system now.”
Implemented key process and strategic changes to meet
IDMS contract requirements
Sold 50 Rooftops – continue to sell to larger dealerships
Installed 34 Rooftops – 175 total installed rooftops
Other Market Opportunities
Work with Integrators / VAR’s / Partners
Quorum continues to pursue other OEM’s as opportunities
present themselves. Our value proposition is recognized by
all OEM’s and we are in pursuing multiple discussions.
The Bottom Line
GM IDMS provides corporate validation and provides forward looking integration
Microsoft Strategic relationship provides technological validation and greater
market presence and forward looking technology roadmap.
Different approach to market with strong Strategic Partnerships with large
organization to help move the market.
GM IDMS provides road map to become one of the “Big Three”. Extrapolate our
20% GM Canada Market-share as we move to other markets.
Automotive retail software is a $3 billion industry with outdated solutions at the
customer level. Change is being demanded by all stakeholders.
Quorum has built leading-edge product (XSELLERATOR & XPRESS) and
established a market with minimal investment to date.
Quorum’s focus in 2007 is on getting to cash flow positive.