ATLANTA -

Many auctions have been ramping up their reconditioning facilities lately to better meet customer’s needs, and Manheim is no exception.

In fact, Mike McKinney, regional vice president operations for Manheim, told Auto Remarketing the company has invested more than $8 million in capital investments in reconditioning facilities for the company’s operating locations since 2012.

Rock Anderson, RVP, West Region Operations, says reconditioning has always been an integral part of the company’s offerings.

“Traditionally, reconditioning has been an important part of our business. That has not changed. Volume continues to increase as our consignors see great value in certification of vehicles prior to sale. Manheim is positioned to assist our customers’ reconditioning needs,” Anderson said.

Another factor that has pushed the importance of recon facilities at auction is the fact that many dealers are not investing in body shops of their own, instead choosing to utilize the auction recon facilities.

 “We have grown the major dealer segment of our business to assist our customers in all of their wholesale needs,” said McKinney. “Many of today’s new-car dealer retail locations do not have their own body shops, so we are positioned well to provide this service to them.”

That said, sellers remain the largest percentage of facility users, says Anderson.

Interestingly, to push interest on the buyer side, the company has connected the recon facility with the next step after sale for a vehicle — transport.

“Buyers are gaining ground as we improve our ability to package reconditioning services with our transportation packages,” McKinney added.

McKinney also outlined some of the ways the company promotes and advertises its reconditioning facility’s capabilities and services.

“Frontline services are promoted in our auction lanes and throughout our locations. We have a staff of more than 250 field sales representatives meeting with customers to promote the value of reconditioning,” he said.

Anderson explained to Auto Remarketing that the recon facility at the auto auction is a way to increase value for customers.

“I would not categorize it as an integral part of the ‘modern auto auction,’ but rather an integral part of a customer’s value solution. At Manheim we are focused on connecting and delivering what the customer needs to guarantee their individual business success,” Anderson said. “Reconditioning is just one of many solutions Manheim provides to help our customers succeed.”

When asked if the reconditioning facility has become more important at auction as wholesale prices have risen, McKinney said, “It has been a steady part of the value chain for our customers.”

Greater Milwaukee AA Redesigns Recon Facility

Fleet and lease sales continue to rise on the consumer-facing side of the market, and with off-lease volumes in the wholesale lanes expected to grow substantially this year, reconditioning facilities at auctions are stepping into high gear in an effort to make sure these vehicles are retail-ready for dealers and buyers.

Greater Milwaukee Auto Auction is tackling this challenge with a brand new recon facility.

“We believe that our reconditioning facility is very important, at the auction level, for the dealers.  The dealers want to buy a fully reconditioned product to sell to the retail customer whenever possible,” said Kristie Griffin, GMAA president.

In April, Auto Remarketing reported that the auction opened the doors to its brand new on-site reconditioning facility, which features three long wash lanes, a five-car service department, a full body shop, auto upholstery services and corporate offices for its fleet consignors.

In fact, Griffin said the auction’s primary reconditioning customers are fleet consignors.

The recon business serves to connect the industry, as new-car stores utilize the auction’s recon facility, as well, Griffin said, because the work meets the fleet standards.

The new reconditioning facility is located right next to the auction’s fleet check-in lanes, so the cars can go directly in the body shop, service center or into the three-lane detail shop, depending on their needs or flags. 

“This process aids our consignors in throughput, and keeps our shops busy at all times,” Griffin said.

Another way the auction ramped up services for its customers is by “streamlining our processes,” said Griffin.

“We have separate fleet check-in lanes, where incoming cars are checked in, CR'd (condition report), signed off by the consignor, and color flagged, before they are moved,” she said.

The auction decided to improve upon its reconditioning offerings when neighboring land was for sale, and the move has expanded the facility to 35.5 acres.

“We looked at the property and loved that is was joining and on the same side of the street.  Our national fleet accounts have a very high standard for reconditioning services, and we knew that we needed a stronger facility to compete in the marketplace,” Griffin said.

The auction has also added matching signs to both the main auction and our new reconditioning facility, “and that has gained a lot of local attention, where both locations are on a main artery in Milwaukee,” Griffin said.

Eco-Friendly Investments

Going back to $8 million in capital investment for recon that Manheim has made in recent years, McKinney gave some insight into some of improvements, one in particular that appears to have some positive ecological ramifications.

A considerable portion of that capital investment was used for making recon more energy efficient, as these facilities traditionally come with a large amount of water waste as well as other more toxic substances.

“Our focus has been to improve wheel repair, install lifts, convert our shops to environmentally friendly paint processes using water-based paints, and provide up-to- date diagnostic equipment to accommodate newer vehicles,” said McKinney.

Likewise, Greater Milwaukee Auto Auction also has kept sustainability in mind, as it made investments in energy efficient technology while building its new recon facility.

“Our main auction lanes have been relighted with energy efficient lighting. Our reconditioning facility needed strong daylight caliber light that drops low from the ceiling so our technicians can see any imperfections and correct them,” Griffin said, “We made a strong investment in an energy efficient ‘return air system’ in the reconditioning facility that maintains a safe and healthy work environment.”

Elsewhere in the recon world, Eric Ramsdell — who is national account manager for auctions and remarketing at Safelite AutoGlass — explained a program at his company that fosters eco-friendliness.

Safelite, which Ramsdell said is the preferred glass provider for several auctions and remarketers, has a windshield recycling program. He said Safelite is the only one of its peers to have a wide-scale program of this kind.

Granted, there are hurdles involved in recycling windshields, but Ramsdell also emphasized how doing so helps the environment.

“Windshields are not commonly recycled because they are made from laminated glass, which is created using two sheets of glass with a clear resin interlay called Polyvinyl Butyral (PVB) between. It is the resin interlay that keeps the glass together when damaged, but it is also difficult to separate the glass and inner plastic layers and re-purpose the PVB,” Ramsdell said.

“Additionally, the logistics of returning windshields to a recycling plant are challenging. Unfortunately, this means the majority of damaged windshields go to a landfill after being replaced. With the average windshield weighing 35 pounds, that creates an enormous environmental impact,” he continued.

That may explain why Safelite chose to go the recycling route and why nearly three-fourths of its locations currently return damaged windshields.

Explaining the program’s origins, Ramsdell said Safelite partnered with Shark Glass Recycling Glass and rolled out a windshield recycling program in 2012.

“With Shark’s patented technology, the laminated glass from Safelite’s customers is processed through the crusher, which separates the glass from PVB,” he said.

“Approximately 90 percent becomes ‘glass cullet’ — which can then be recycled into a number of new products including fiberglass insulation — while approximately 7 percent becomes PVB scrap, which is reprocessed into pellets and recycled into a number of new products, such as carpet backing, paint and primer, and other plastic products,” Ramsdell continued. “In fact, Safelite uses rugs made with the recycled carpet backing with the company logo in many of its locations.

“The logistics of collecting the damaged windshields and shipping to the recycling plant were designed to be carbon neutral, using existing freight lanes within the supply chain returning to Safelite’s East Coast distribution center,” he added. “For this reason, Safelite currently has 70 percent of its locations returning damaged windshields and hopes to reach 100 percent in the near future.”