GM hires Arkona for DMS program

DealerTrack unit will replace Reynolds and Reynolds

DETROIT -- General Motors has chosen Arkona Inc., a DealerTrack Holdings Inc. company, to join its Integrated Dealer Management System program.

More than 1,000 dealers use Arkona’s management system to run their daily operations.

Arkona, in effect, will replace Reynolds and Reynolds Co. in GM’s dealership program. Reynolds and GM were embroiled in a breach-of-contract lawsuit when Reynolds bowed out of the Integrated Dealer Management System program in February.

GM’s 7,000 dealers now have two ways to obtain an Arkona dealership management system.

1. Contract directly with Arkona.

2. Contract with GM for an Arkona system.

The GM program offers dealers month-to-month contracts, stable pricing and a volume price negotiated by GM.

Arkona joins three vendors already in the GM program: Quorum Information Technologies Inc., AutoSoft International Inc. and ADP Dealer Services.

GM dealers suggested that Arkona would be the next logical company to join the Integrated Dealer Management System program, says Marty Raymond, GM’s director of global retail programs.

“We agreed that Arkona was a player that made a lot of sense to bring into the IDMS strategy,” Raymond says.” “IDMS continues to be a key strategy for General Motors and General Motors dealers.”

DealerTrack, widely known by dealers for its finance and insurance products and services, acquired Arkona a year ago, instantly giving DealerTrack a dealership management system.

“Each of the four vendors has its strengths that make this a good thing for our dealer network,” Raymond says.

Raj Sundaram, senior vice president of DealerTrack’s dealer solutions group, says that GM’s choice of Arkona finally gives the overall industry the same perception of Arkona that many Arkona customers already have -- a lower-cost alternative with Tier 1 service.

“So it’s a big moment for Arkona, clearly, so we’re very excited to be part of GM,” Sundaram says.

“We think the timing is great,” he says. “I think the dealers are going to feel it in their pocketbook -- that’s really the bottom line. We think that this will really give them a fantastic alternative at a significant cost savings.”

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