SOURCE: Automobile Club of Southern California

May 03, 2007 09:00 ET

Automobile Club of Southern California Assumes Responsibility for AAA Alabama

LOS ANGELES, CA -- (MARKET WIRE) -- May 3, 2007 -- The Automobile Club of Southern California today announced that AAA Alabama has become a subsidiary of the Club. In the last decade, the AAA Federation has experienced many club combinations as part of a national trend of combining operations of AAA clubs to maintain preeminence in roadside assistance, travel and insurance services. These voluntary combinations result in improved efficiencies and enable AAA clubs to continue providing the highest quality service at very reasonable prices. AAA Alabama has been providing member services for 83 years and is headquartered in Birmingham, Alabama.

The Auto Club began its expansion outside of California when it assumed responsibility for managing the AAA Clubs in Texas, New Mexico and Hawaii in 1996 as part of a national effort to strengthen member service. The Auto Club also added to this in recent years by entering into affiliation agreements with AAA Northern New England in 2003 and with AAA Missouri in 2006. These affiliations permit greater efficiencies while preserving high quality and local member service. Together, the Auto Club, its subsidiaries and affiliates serve more than 10 million members in 15 states or about 22% of all members nationally. AAA Alabama will continue to operate as it has, but with the resources that a much larger organization can bring to it.

"The Auto Club and AAA Alabama share a dedication and commitment to our members and to providing the highest quality member service. This focus on members makes our affiliation a natural fit for both organizations and will enhance the ongoing improvement of AAA throughout the country," said Thomas McKernan, CEO of the Auto Club. "Working together we will be able to continue improving AAA services, making service more accessible, as well as offering new services to AAA members." Both the Auto Club and AAA Alabama have among the lowest membership dues in the country and this combination will enhance their capabilities to continue this tradition.

"Joining forces with the Auto Club will allow us to offer even better member service," said Frances Smith, chair, president and CEO of AAA Alabama. "We think this will ensure the future growth of AAA in Alabama and increase the value of membership."

The Automobile Club of Southern California founded in 1900, two years prior to AAA's founding, is the largest club in the AAA federation. It has been recognized numerous times throughout its history for the outstanding value it provides its members and for the many contributions it has made to Southern California motorists. In addition to its famous roadside assistance, it offers travel and automotive services, member discount programs, and competitive auto, home, and boat insurance.

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