Ford, Trilogy Join to Form Auto E-Business Venture

Ford Motor Co. said Wednesday that a closely held Texas company will operate all of Ford’s consumer Web sites and provide online services to Ford’s dealers.

As part of the deal, Ford and Trilogy Software Inc. plan to create an Internet venture in which Ford will get a majority stake. The new company’s base will be Austin, Texas, and will have offices in Irvine, Dearborn, Mich., and Europe.

The companies said they are making “significant” financial investments in the new company, which will serve as Ford’s full-service e-business partner, as well as additional investments through employees and technology. Additional financial terms weren’t disclosed.

“Ford is trying to deploy technology as rapidly as possible to take advantage of the capability of the Internet,” said David Garrity, an automotive analyst with Dresdner Kleinwort Benson in New York. “Ford is going to have a better idea of what customers are interested in purchasing before they reach the dealers.”

Ford has taken several steps in the last year to move more of its business online as well as make sure that Internet-savvy consumers find their way to Ford-related sites.

Ford owns a minority stake in Microsoft Corp.’s CarPoint, which includes potential plans to create a build-to-order online system. Ford owns a stake in CarClub.com, an online car-buying and relationship marketing site. It also launched a joint venture with Oracle Corp. to create AutoXchange, an online parts-purchasing system.

Ford shares fell $1.06 Wednesday to close at $43 a share. The stock value has fallen 27% in the past year.

Meanwhile, Trilogy, also based in Austin, has made its own auto moves. Its CarOrder.com unit has set plans to acquire bricks-and-mortar dealerships to use as distribution hubs for sales over a Web site. Trilogy, which has more than 1,000 employees, also owns ApplianceOrder.com and a controlling stake in PcOrder.com Inc.

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