DETROIT - Dealers won't have to pay a fee when they use a Web-based credit application system that the Big 3 captive finance companies will unveil in 2003.
The captive finance arms have created a company to build, manage and maintain the system. Its first function will allow Big 3 dealers to submit online credit applications to the captives.
The company, which lacks a name, will generate revenue primarily by licensing the use of the system to captives, banks and credit unions.
The Big 3 finance companies will discontinue using their own proprietary credit application systems once the system is operating, said Mike Jurecki, the joint-venture company's CEO, who was former director of operations at Ford Motor Credit Co.
Dealers will be able to access the system through a link on each captive finance company's Web site.
Ford Credit, General Motors Acceptance Corp. and DaimlerChrysler Services joined in January to offer a common system. One reason for the venture is to keep from being left behind by numerous online credit application systems that dealers now use. The systems link banks and other financial institutions to dealers.
"We need to keep control of this, to try and make sure that the captive model is presented," Jurecki said.
Jurecki, 43, was named CEO in March, and the appointment was made public May 8.
Any captive finance company will be able to use the system, Jurecki said. Banks and credit unions also will be able to participate.
It will go live toward the end of 2003, or maybe sooner, he said.
Larry Bossier, who has a Chrysler-Dodge-Jeep-Daewoo dealership and a Toyota dealership in Bryan, Texas, said the system could make the captive finance companies faster and better.
"We will be able to send these deals to anybody just by pressing a key," Bossier said.
Ford Credit, GMAC and DaimlerChrysler Services expect the system to improve customer satisfaction with credit application, increase speed and reduce costs and mistakes, Jurecki said.
The company, in Southfield, Mich., will need between 40 and 80 employees, depending on the operations it decides to outsource.