The auction industry has a strong history of cooperation that has led to visionary and long-term successes.

AutoCheck, simulcast, AutoIMS and AuctionNet being typical examples, along with the NAAA, our long-term and solid association.

Past leaders looked at the broader picture that would create strength across the entire industry, which would then provide a solid competitive landscape upon which all auctions could build on and enhance the value of the industry on a national scale.

As I watch today's leadership, I see a completely different dynamic: an industry that uses price versus service as a marketing tool, directs data from positive industry enhancements to arbitrage, and attempts to sell the “one-size-fits-all-remarketing-needs” model.

I suggest that today’s leaders look beyond their individual companies and begin to work on industry-centric enhancements that could strengthen the industry for decades.

I suggest some of the following might be a good start.

Political action committee work with a goal of changing the issues in used-vehicle exports across our Mexican border. Currently we have new vehicles being built in Mexico and empty rail cars crossing the border and coming back full, but the flow of used into Mexico has been chocked off with restrictive fees and limited years as Mexico protects its new-car industry.

We need to create a southern market again that assists us in increasing the returns of our consignors by reopening the Mexican market. If we do not, we are not offering full service to our consigning partners.

We need to look at the conundrum we have created by diverting our revenue streams from a balanced equation to a system that, driven by low-price market share tactics, has loaded the cost factors to the buyer side, driven through rebates and other items such as free transportation.

We need to create a system that values our marketing side, which over the past decade has decreased on every level, even against inflation.

We need to value and enhance vehicle history data streams and use them effectively to provide a totally transparent sales transaction, along with recall and other data that will fairly evaluate the vehicle’s condition and thus create market pricing that reflects the true and complete condition of the car.

Industry leadership needs to take a consolidated and proactive approach to creating CFPB guidelines, using the NAAA as the focal point, and not let the agency dictate through our consigning partners, who are making a variety of different requests to the industry based on how they perceive the agency’s requirements. More importantly, IARA needs to take a stance beyond dictating auction requirements in its white papers going forward.

Leadership requires both inward and outward focus, and key industry leaders are indeed doing an incredible job driving their companies to new highs into vertical and horizontally integrated dynamics. Creating the external dynamics in which both their companies and others can strive is another issue all together. Everyone might consider going back to the great days of an industry conference where all general managers, industry executives and their significant others attended, created cross-company friendships and strengthened an industry beyond its territorial borders.

As always, just one man's opinion.
 

Editor’s Note: Jim DesRochers is vice president at Dealers Auto Auction of the Southwest. As with any contributed content, the opinions expressed in this and other editorial columns are solely that of the author’s and do not necessarily reflect those of Auto Remarketing or its parent company.