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TrueCar Gains Former Hyundai Boss, Files Paperwork for IPO

Motor Trend logo Motor Trend 4/4/2014 Karla Sanchez

It's an exciting time for car-shopping website TrueCar. The company has announced former Hyundai CEO John Krafcik has joined its board of directors, and that it has also filed paperwork with the Securities and Exchange Commission for an initial public offering.

Krafcik joins TrueCar as director and as a member of the board's operating committee after his five-year tenure at Hyundai Motor Corp. Krafcik stepped down from his position at Hyundai late last year, leaving former VP of sales David Zuchowski in charge of U.S. operations. The move comes just after TrueCar raised $30 million from Paul Allen's Vulcan Capital, and announced that it has completed over 1 million auto transactions with help from its certified dealers. In addition, TrueCar has also filed for an IPO, and although certain details like the amount of shares and the price they'd be offered at haven't been revealed, Automotive News reports the company may seek a market value of as much as $125 million. Goldman, Sachs & Co. and J.P. Morgan Securities LLC will act as the joint book-running managers, and if the transaction is completed, it would be good news for the company.

"And I think, you know, if we ultimately take on additional capital or we become a public company, I don't think anything changes other than we just will have the resources to grow bigger and faster," said TrueCar CEO Scott Painter to Automotive News.

This is a stark comparison to the company in 2012, when it nearly went out of business after dealers complained TrueCar was fostering hyper-competition. Now, the company has been restructured to focus more on providing a transparent price that allows dealers to still make a profit. TrueCar currently works with a dealer network of more than 7500, but those numbers could grow if the company continues its success.

Source: TrueCar, Automotive News (Subscription required)

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