The Logistical Challenges of Remarketing at Different Venues

September 23, 2008

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SAN DIEGO — The advent of online auctions in the remarketing industry certainly has helped buyers and sellers in remote areas of the country connect more efficiently.

But greater use of Web-based avenues has also raised a new set of questions about logistics, which will be addressed by top executives from Ready Auto Transport, PAR North America, the National Auto Auction Association, DAA Northwest, OPENLANE, Manheim and GMAC.

These experts will gather for a panel at the National Remarketing Conference and Used-Car Expo in San Diego called "The Critical Value of Logistics in the Traditional and Online Remarketing Channels."

The event is slated for Oct. 22 to 24 at the Manchester Grand Hyatt in San Diego.

Moderated by Mark Jensen, president of Ready Auto Transport, the panel will more specifically feature: Jerry Kroshus, president of PAR North America; Bob McConkey, president-elect of the National Auto Auction Association and president of DAA Northwest; Peter Kelly, chief financial officer of OPENLANE; Susie Avery, vice president of online customer relations for Manheim; and Steve Kapusta, director of remarketing for GMAC.

"Over that last decade, the introduction of online auctions has introduced new dynamics into the buyer and seller relationships. For example, in the traditional auction channels sellers and/or the auctions were burdened with the most of the transportation costs," Jensen explained.

"Emerging online channels presented opportunities to shift that burden to the buying dealer, thus eliminating some of the transportation costs from the chain," he continued. "The opportunity cost to the buyer was the ability to leverage value added auction services that otherwise might have been available to him."

That being said, the industry must address certain questions that remain, Jensen noted. For instance, how has the auction model adapted?

"It is overly simplistic to say that transportation costs are the only costs against lower vehicle values in neighboring markets," Jensen added.

In other words, looking at the bigger picture, what role will logistics play in the auction models as the economy continues to change?

"There are countless other areas where logistics are having a direct effect on the programs that sellers employ in the auction channels," Jensen continued. "We have invited key executives from the industry to discuss these issues with us since logistics will have an increasing impact on the remarketing decisions that are made."

Bill Zadeits, conference co-chair, added, "The nature of the remarketing game has changed dramatically with the launch of online auctions, and both buyers and sellers have to face new logistical challenges.

"This panel will arm attendees with the necessary tools to adapt to the evolving wholesale marketplace," Zadeits noted.

Moving on, the conference will also feature several other panel discussions to examine various key issues within the remarketing industry.

For example, one panel will feature executives from major banking institutions, rental companies, auction companies and OEMs, who will discuss how some of America's biggest companies are reacting to the recent challenges in the used-car market and how they have positioned themselves to overcome these hurdles.

Specifically, "A Perspective From the Front Line & Top Level of the Organization" will include: Steve Piccinati, senior vice president of remarketing at Bank of America; Greg Thibault, vice president of disposal at Avis Budget Group; Mark Mathews, director of used-vehicle activities with General Motors; and Linda Silverstein, manager of remarketing and rental operations at Ford.

Other scheduled panel discussions are:

SubPrime: Remarketing a Subprime Portfolio in Unsettled Economic Conditions

Featuring Scott France, senior portfolio management at Triad Financial; Jody Hall, vice president of remarketing at Peak 5; and moderated by Jenna Reed, automotive group editor for Auto Remarketing and SubPrime Auto Finance News.

The Right Cars at the Right Price

This panel dives into best practices on a variety of topics, from finance and service, bidding on and preparing vehicles for auction and buying for retail. Participants are Norm Olson; sales operations, manager for Toyota Certified Used Vehicles; Dan Kennedy, national sales manager for General Motors Remarketing; and Dave Sutton, general manager of auction sales and operations for VW Credit Inc. Larry Gamache, director of communications at Carfax, will serve as moderator.

Rising Repossessions

Learn how to best manage recovery rates and apply new technologies to your best practices and portfolio management. Discussing these issues will be John Lewis, president, FindJohnDoe.com; David Cowlbeck, chief executive officer of Renaissance Recovery; Les McCook, executive director of American Recovery Association; and Steve Norwood, president of Consolidated Asset Recovery Systems.

Remarketing, Residual Values, CPO, Inventory Management

Various dealer groups offer their perspectives on succeeding in uncertain used car markets. Panelists include: Danny Papakalos, used-car director for AutoNation; Bob Andersen, used-car director for Bergstrom Automotive; Mike Baker, CEO of Bob Baker Automotive; and Adam Simms, president and general manager of Toyota/Scion Sunnyvale. Tony Albertson, of NCM Associates, will be the moderator.

Green, Globalization & Gas

The impact of green initiatives, globalization and gas prices on wholesale markets in North America and around the world and features Warren Byrd, executive vice president of corporate development at ADESA; David Munnikhuysen, vice president of best practices at Manheim; and Nagi Palle, vice president of analytics at OPENLANE.

To register for NRC or view a full agenda, visit www.autoremarketingconferences.com.