Detroit Bureau on Twitter

Posts Tagged ‘’

TrueCar IPO Falls Short of Expectations -Then Rebounds

After dropping price, traders quickly drive shares back up.

by on May.16, 2014

John Krafcik, third from left, TrueCar president, and Scott Painter, founder and CEO of TrueCar, right of Krafcik, celebrate the its debut on the NASDAQ.

With some of the fizz going out of internet stock in recent weeks, the initial public offering of stock by auto buying service TrueCar fell short of its own, cautious expectations as it began its first day of trading — but then quickly rebounded.

Initially expected to command between $12 and $14 per share when shares began trading today, they actually wound up launching under the NASDAQ symbol “TRUE” at a much more modest $9.00. Considering the nearly 8 million shares of common stock TrueCar offered, it will have raised about $70 million, down from initial expectations of somewhere around $100 million.

Subscribe for Free!

The firm expects to use the cash it did raise for expanding its business operations and possibly making additional acquisitions according to the company’s Securities and Exchange Commission filings. It purchased the influential ALG, the former Automotive Leasing Guide, two years ago.


TrueCar Files for IPO as Former Hyundai CEO Krafcik Joins Board

Shopping service looking to raise $125 million.

by on Apr.04, 2014

TrueCar wants cash to grow its operations.

Online automotive shopping site has announced plans to go public – a significant turnaround for a service that some thought might not survive a series of legal challenges that forced the company to make some major changes to its business model over the last two years.

TrueCar revealed it had filed the necessary paperwork – known as a Form S-1 – with the Securities and Exchange Commission  just a day after it announced that former Hyundai Motor America CEO John Krafcik had joined the company’s board of directors.

Free Subscription!

Though the firm’s management could not comment about the IPO due to federal guidelines, the planned stock offering is expected to raise as much as $125 million which would be used to further expand the firm’s aggressive growth plans.  TrueCar previously  raised significant funds through private equity offerings, including a $30 million investment by Vulcan Capital, the investment arm of Microsoft co-founder Paul Allen.


TrueCar Reinvents Itself

Aiming to keep both customers and dealers happy.

by on Dec.18, 2012

TrueCar's Scott Painter has lost a lot of money -- and weight -- while trying to fix the company's problems.

For a businessman, there are few things worse than having to start all over again – unless it involves losing millions of dollars in the process.

But few in the auto industry have had more experience reinventing themselves than Scott Painter, a serial entrepreneur who has repeatedly come up with concepts aimed at rethinking the way cars are sold. Among the companies to his credit are CarsDirect and TrueCar.

The latter website made waves when it began offering U.S. car buyers the sort of deep, insider pricing information that hadn’t previously been made public, including not only data on what dealers really paid for a vehicle but also the lowest prices that customers were getting away with paying.

Stay on Top!

Not surprisingly, that didn’t sit well with retailers who accused TrueCar of violating various strict franchising laws.  Notably, states like Texas and Virginia bar so-called “bird-dogging,” or auto brokering, where a third party steps in to help a customer get a better price.


Typical Car Got 0.5 MPG Better Mileage in 2011

Hyundai led industry, among major makers, at 26.6 mpg, says new study.

by on Jan.13, 2012

Hyundai led the industry, at least among major manufacturers, when it came to fuel economy in 2011.

The fuel economy of the average vehicle sold in the U.S. last year increased by a half mile per gallon over 2010 – in the process savings American motorists a collective 214 million gallons – or $722 million at the pump — according to new research.

The typical vehicle got 22.2 miles per gallon, reported data tracking service, up from 21.7 mpg in 2010.

But there was a wide disparity among manufacturers.  Chrysler, which is heavily dependent on vehicles like the big Ram pickup and Jeep Grand Cherokee SUV, averaged just 19.9 mpg a 0.2 mpg increase year-over-year.  Korean carmaker Hyundai, which sells several crossover/utes but no truck models, averaged 26.6 mpg, a 1.3 mile per gallon gain.

The Final Word!

Hyundai has been heavily promoting the mileage of its vehicles, four different models now rated by the EPA at over 40 mpg, and that “is right up there with design and with improvements in driving dynamics for boosting our sales,” said Hyundai Motor America CEO John Krafcik, referring to the 20% jump in demand the company reported in 2011.