October 31, 2008
To All Stakeholders:
Company: USS Co., Ltd.
Company: USS Co., Ltd.
President and CEO: Yukihiro Ando
Stock code: 4732
Stock exchange listings: Tokyo and Nagoya (first sections)
Tel: +81-52-689-1129
Contact: Masafumi Yamanaka
Managing Director
Junior Managing Director, Officer, Supervisory Office
Stock code: 4732
Stock exchange listings: Tokyo and Nagoya (first sections)
Tel: +81-52-689-1129
Contact: Masafumi Yamanaka
Managing Director
Junior Managing Director, Officer, Supervisory Office
USS To Open Kagoshima Site and Purchase Property and Equipment
USS Co., Ltd. has decided to establish the USS Kagoshima Site as a base for vehicle processing for the purpose of strengthening operations in Kagoshima and other areas of southern Kyushu. USS will also purchase property and equipment for this facility.
1. Reasons for establishing the USS Kagoshima Site
The USS Group operates a nationwide network of 18 auction sites for its members-only used car auctions. In the fiscal year that ended in March 2008, 42,681 used car companies were members and a total of 2.92 million vehicles were sold. The group is the leader of Japan’s used car auction industry with a market share of 34.8% (January to June 2008).
In Kyushu, the USS Group has two auction sites: the Kyushu Site in the city of Tosu in Saga prefecture and the Fukuoka Site in the city of Chikushino in Fukuoka prefecture.
At this time, USS has reached the decision to strengthen operations in southern Kyushu, particularly in Kagoshima prefecture, where there are a large number of vehicles owned. By establishing a vehicle processing site (the Kagoshima Site) in the city of Kagoshima, USS will be able to perform procedures required to submit vehicles at this site for sale at the Kyushu and Fukuoka auction sites. Vehicle acceptance, inspections, pictures and other steps required prior to the auction will be performed at the site. Following the auction, the site will handle the shipment of vehicles to their buyers.
Prospective buyers will not have the opportunity for on-site inspections of vehicles at the Kagoshima Site prior to auctions at the Kyushu and Fukuoka sites. But USS will offer a service in which its vehicle inspectors perform preliminary inspections on behalf of members.
The USS Group also conducts two network auctions: the Globe Network service where bidders participate by using a special satellite TV terminal (5,317 companies registered), and the Internet Live service by internet (21,899 companies registered). Both network auctions will allow companies from anywhere in Japan to place bids on vehicles stored at the Kagoshima Site.
USS members that use the Kagoshima Site will benefit because there will no longer be a need for the costly transport of vehicles or long lead times before delivery of vehicles to the Kyushu or Fukuoka auction site. USS believes these advantages will contribute to a growth of the used car market in Kyushu.
The capital investment for the Kagoshima Site and the revenue from this site will have only a negligible effect on consolidated performance in the fiscal year ending in March 2009.
Note: All figures for the number of members are as of September 30, 2008.
The USS Group operates a nationwide network of 18 auction sites for its members-only used car auctions. In the fiscal year that ended in March 2008, 42,681 used car companies were members and a total of 2.92 million vehicles were sold. The group is the leader of Japan’s used car auction industry with a market share of 34.8% (January to June 2008).
In Kyushu, the USS Group has two auction sites: the Kyushu Site in the city of Tosu in Saga prefecture and the Fukuoka Site in the city of Chikushino in Fukuoka prefecture.
At this time, USS has reached the decision to strengthen operations in southern Kyushu, particularly in Kagoshima prefecture, where there are a large number of vehicles owned. By establishing a vehicle processing site (the Kagoshima Site) in the city of Kagoshima, USS will be able to perform procedures required to submit vehicles at this site for sale at the Kyushu and Fukuoka auction sites. Vehicle acceptance, inspections, pictures and other steps required prior to the auction will be performed at the site. Following the auction, the site will handle the shipment of vehicles to their buyers.
Prospective buyers will not have the opportunity for on-site inspections of vehicles at the Kagoshima Site prior to auctions at the Kyushu and Fukuoka sites. But USS will offer a service in which its vehicle inspectors perform preliminary inspections on behalf of members.
The USS Group also conducts two network auctions: the Globe Network service where bidders participate by using a special satellite TV terminal (5,317 companies registered), and the Internet Live service by internet (21,899 companies registered). Both network auctions will allow companies from anywhere in Japan to place bids on vehicles stored at the Kagoshima Site.
USS members that use the Kagoshima Site will benefit because there will no longer be a need for the costly transport of vehicles or long lead times before delivery of vehicles to the Kyushu or Fukuoka auction site. USS believes these advantages will contribute to a growth of the used car market in Kyushu.
The capital investment for the Kagoshima Site and the revenue from this site will have only a negligible effect on consolidated performance in the fiscal year ending in March 2009.
Note: All figures for the number of members are as of September 30, 2008.
2. Profile of USS Kagoshima Site and Purchase of Property and Equipment
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