MELBOURNE-BASED vehicle telematics company Connexion Media says it will focus more heavily on the United States market in a bid to maximise the opportunity presented by General Motors’ decision to market its fleet management system across America.
Directors are also hoping to build on Connexion’s GM success, revealing that Connexion is currently processing requests for quotes from five other car-makers for the supply of its fleet management system. The product has been re-branded from Flex to CXZ Telematics.
Connexion will beef up staff numbers in the Detroit sales and marketing office, the company’s main sales outlet, according to George Parthimos, who is now Connexion’s executive chairman.
“In addition, the Company’s sales and marketing efforts will now be driven primarily out of Detroit, a key automotive hotspot and the headquarters of Connexion Media’s automotive partner, GM,” he said.
Mr Parthimos said the expanded Detroit office would broaden the section of the market that it is targeting. It will now be looking to sign up fleets with more than 1000 vehicles. Initially GM and Connexion were looking to sign up fleets up to 15 vehicles.
“By adapting its telematics platform to host larger fleets, the company will expand the number of vehicles it can target by an additional 1.75 million vehicles that can be accessed via a concentrated customer base of fleets across the US,” Mr Parthimos said.
The increased focus on the US has come after another round of cost cutting in the Australian operations and a further capital raising, this time for $1 million.
Mr Parthimos said much of the development and customisation work needed for the US market was now complete and that directors had decided to cut back on the Australian operations.
Mr Parthimos said cuts saving $2.4 million a year had reduced the company’s cash burn rate by 38 per cent. The workforce had been reduced by 32 per cent and the wages bill had declined by a similar proportion.
“We are transitioning our strategic priorities towards ramping up the sales of our telematics products. At the same time, we have streamlined our costs to accelerate the company’s progress towards its CY2017 cashflow break-even target.”
By Ian Porter