CARMEL, Ind. -

KAR Auction Services Inc. revealed Tuesday morning it has become the first remarketer to join the Mobility Open Blockchain Initiative, also known as MOBI. As the first remarketer, KAR joins what is described as a member-driven consortium of global automotive industry leaders, the goal of which is to explore blockchain tech use in the “digital mobility ecosystem.” 

Other automotive sectors represented on the consortium include international automotive OEMs, new mobility tech companies, government agencies, and leading consulting and financial services firms. 

"Working with other leaders in the automotive and technology industries as partners with a vested interest in the success, integrity and security of blockchain enabled solutions, we can build a more transparent and trustworthy ecosystem," said Don Gottwald, chief operating officer and chief strategy officer at KAR, in a news release announcing the move.

"As a forward-thinking company, KAR has assembled a team to consider potential blockchain technology use cases, and active participation in MOBI can help ensure that effort results in a unified, secure reality for our customers and the industry," he added. 

Officials from MOBI said they are actively working with companies accounting for over 70 percent of global vehicle production in terms of the market share.

MOBI and partners — including BMW, Bosch, Ford, General Motors, Groupe Renault, ZF, Aioi Nissay Dowa Insurance Services USA, and now KAR Auction Services — seek to foster an ecosystem where businesses and consumers have security and sovereignty over their driving data, manage rideshare and car-share transactions, and store vehicle identity and usage information.

Working in a consortium can allow MOBI and partners to create transparency and trust among users, reduce risk of fraud and reduce frictions and transaction costs in mobility, such as fees or surcharges applied by third-parties.

Through an open-source approach to blockchain software tools and standards, the MOBI consortium hopes to stimulate more rapid and scalable adoption of the technology by other companies developing autonomous vehicle and mobility services.

MOBI connects a majority of global mobility providers with blockchain innovators as well as government and non-government agencies, and institutions to collaborate on the development of blockchain-enabled vehicle data and mobility services applications.

Initially, MOBI will be working with its partners on projects related to:

  • Vehicle identity, history and data tracking
  • Supply chain tracking, transparency and efficiency
  • Autonomous machine and vehicle payments
  • Secure mobility ecosystem commerce
  • Data markets for autonomous and human driving
  • Carsharing and ride hailing
  • Usage-based mobility pricing for vehicles, insurance, energy, congestion, pollution, infrastructure, and more. 

"Blockchain has the potential to transform the automotive industry – how dealers and consumers purchase vehicles, insure vehicles and use vehicles on a day-to-day basis," said Chris Ballinger, chairman and CEO at MOBI. "KAR's participation with other automotive industry leaders such as global manufacturers, suppliers, startups and government agencies means we can all work toward developing a network we trust and adopt."

The potential of blockchain is just one new wave of innovation hitting the automotive market these days. 

In fact, Cherokee Media Group’s new event — the Automotive Intelligence Summit, sponsored in part by KAR Auction Services — is kicking off today and covering topics like cybersecurity, ride sharing, the future of car ownership, fin tech and more. The Raleigh, N.C., event, will go through Thursday of this week, and covers the latest in tech, as well as providing strategies and insight on the future of the auto industry. 

Read more on the new MOBI consortium in the very first edition of the Auto Fin Journal, set to hit the Web soon. In the meantime, check out the latest coverage from the new publication at https://www.autoremarketing.com/autofinjournal. 

Nick Zulovich, Senior Editor, Auto Fin Journal, BHPH Report, and Subprime Auto Finance News, contributed to this report.