The company also announced that it has begun seeing results from the Navicom marketing campaign. Testing units are now available for homeland security agencies, law enforcement, government agencies, auto dealers, fleet managers and trucking companies. Navicom foresees the $25 billion dollar sub- prime automobile market becoming the fastest growing segment and will offer companies its asset collateral monitoring devices with lease options. These solutions include automobile tracking, auto disable/enable capability through Internet, geo-fence boundary notification and point/click auto repossession. Other sub-prime auto companies are also buying Navicom to install on vehicles they finance. Navicom believes it has the solution for the $25 billion dollar automotive sub-prime debt market to protect financed assets. Navicom is being acquired by Automotive Capital Group, Inc. and the merger is expected to be completed by September 1, 2004. The Navicom Company''s website is http://www.nowgps.com/ and http://www.gpsstation.com/.
Automotive Capital Group, Inc. which is acquiring both Colfax Financial and Navicom uses the GPS system in each automobile they finance. The use of Navicom technology eliminates a great deal of the risk and protects the loan asset by tracking it 24/7. Because of the Navicom system, the company''s goal is to improve the current vehicle sales of 50-100 cars each month for an average price of $8,000 per car to 200 autos per month of an average sale price of $10,000. The company will finance each vehicle at 29.9% interest rate and install Navicom GPS in each automobile. The buyer can also receive insurance discounts of up to 33% with the installation of Navicom as well.
The acquisition of Navicom comes as industry watchers predict a wave of growth in the global positioning systems or GPS market. New Navicom GPS products include portable, hardwire, solar, heavyweight equipment, marine and motorcycle GPS tracking service. One reason Navicom has such growth potential is unit sales plus a monthly reoccurring revenue for service. Overall GPS demand has been picking up in the past year because GPS technology can be used in daily business as a tool. Navicom is seeing increased volume in applications -- personal tracking, vehicle navigation, fleet management and motorcycle security system. The company said Monday that they are seeing significant reorders from current customers that use the MLU (Mobile Location Unit) wireless GPS technology.
Navicom global positioning system (GPS) receivers are now affordable, making applications unthinkable just 18 months ago. These emerging GPS applications, plus growth in current markets, will help propel the global GPS market north of $22 billion by 2008, according to technology market research firm ABI. In a 2003 study released by ABI, GPS for the vehicle and asset tracking segments were expected to account for 50% of the global GPS market and continue to gain share through 2008. Navicom is looking to capture market share with service in 98% of the US, Canada and Mexico, a much broader range then competitors.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment.
We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties, as well as other uncontrollable or unknown factors, could cause actual results to materially differ from the results, performance or expectations expressed or implied by such forward-looking statements. The guidance above is dependent on closing merger/acquisition of the above listed companies.
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Automotive Capital Group, Inc.