Auto Remarketing has learned that General Motors and GM Financial are consolidating their remarketing organizations in the U.S. under the GM Financial brand.

GM Financial sent an overview of the consolidation to Auto Remarketing on Wednesday, in which it explained the alignment in great detail. GM Financial will continue to sell vehicles at Manheim, ADESA and independent auctions, as well as through the GMFDealerSource.com online channel.

The latter is a platform built exclusively for GM dealers where they can track upcoming maturities, get payoff quotes, ground returning cars and buy off-lease units.

The company will have closed, open and open online sales; there will be 33 closed sales locations where GM franchised buyers can make purchases.

Sale dates and locations can be found at auctions.gmfinancial.com and gmonlineauctions.com.

As far the reasons for the change, the overview notes that consolidating their remarketing organizations “allows us to better serve dealers with consistent inventory and more volume at auctions across the country.”

It also pointed out: “Unified operations and marketing efforts under one brand will create operational and cost efficiencies for both companies and will enhance the ease of doing business for our dealers and auction partners.”

GM Financial assumed the responsibility for both organization’s remarketing sales operations on July 1, which are led by Dan Heinrich, senior vice president of remarketing solutions at GM Financial, the company said. Brad Bollman, who is GM Financial’s vice president of remarketing solutions, will continue to report to Heinrich and will assume responsibilities for all realigned auctions

They added that GM Remarketing retains the responsibility for the rental account relationships, distribution centers, and administrative functions; these report to Jennifer Costabile, who is the general director of rental sales, marketing, advertising and used-vehicle activities at General Motors. Dan Kennedy will continue to report to Costabile.

July 1 was the effective date for all changes with auction locations and reporting structures, the company noted. 

“GM Remarketing and GM Financial Remarketing were operating as separate organizations and, as such, had a large footprint of participating auctions across the country with varied vehicle offerings, different marketing efforts and individual operating procedures,” said Heinrich.

“By combining GM Remarketing and GM Financial Remarketing, we’re able to consolidate our auction footprint while providing more vehicles at each auction, increasing operational efficiency by aligning our platforms and standards, and offering consistent vehicles to our dealers,” he added. “Ultimately, we’re offering dealers a unified and simpler buying experience supported by even better inventory.”

The overview also explains how this move will impact dealers, listing these benefits:

• Consolidating to fewer auction locations will create a broader offering of year, make and model mix for dealers.
• Working with one company under one unified brand simplifies the buying experience for dealers.
• It allows for continued and consistent quality standards on vehicles.

Additionally, the overview mentions these overall benefits to consolidation:

• Consolidating the number of auctions, thus aggregating inventory, allows for more vehicles at each auction.
• Consolidating the number of auctions improves multiple efficiencies for GM and GM Financial.
• Consolidating operations eliminates redundancy
• Centralized marketing efforts allow us to target the right buyers for the right vehicles and enhance collaboration with auction partners with a focus on dealer satisfaction.
• Presents a single message to auction partners and allows for continued quality standards.
• Leveraging GM Financial’s existing sales teams will improve dealer engagement at auctions.

Costabile added: “To better serve our GM dealers, General Motors and GM Financial are taking a 'One Company' approach to remarketing GM-branded vehicles.

“With GM and GM Financial joining forces, we will provide our dealers with an outstanding remarketing experience. This strategic move will provide operational efficiencies, improved dealer inventories and increased strengthening of the GM and GM Financial brands,” she added.

Bollman, noted: “The GM Financial and GM Remarketing teams have been working together over the past several years and recognized the opportunity to align operations and improve overall remarketing operations.

“We’re proud of the GM Financial brand and are excited to continue building visibility for both ourselves and GM. GM and GM Financial have each brought our strengths to the table, and by combining GM company car and rental vehicles with GM Financial’s vehicles in similar sales environments, we will provide a more balanced dealer experience and continue to strengthen the GM Financial brand,” he added.

Stacey Petras, assistant vice president of remarketing solutions, at GM Financial said: “We’re really excited about this influx of inventory on GMF DealerSource because of the purchasing opportunities it will provide dealers. Currently, GMF DealerSource offers a limited amount of vehicles available for purchase, and they’re regionally concentrated in the Northeast.

“A dealer in Texas wanting to purchase from GMF DealerSource has a difficult time sourcing inventory, especially if he or she doesn’t want to pay vehicle transportation costs. Later this year, the volume of vehicles on the site will jump from hundreds to thousands,” Petras added. “Adding GM’s company and rental vehicles to the site will increase buyer traffic and bidding activity. It’s going to be a big opportunity for GM Financial and GM dealers.”