ATLANTA -

Starting Jan. 1, Manheim will have a simplified market structure, in which each of its physical operating locations will be in one of two divisions: Local & Mobile or National. 

“This is a strategic change for Manheim, but one that we are confident enables us to be an even stronger partner and solutions provider for our commercial and dealer clients,” Grace Huang, Manheim senior vice president of inventory services, said in a news release. 

“Our new market structure also will position us for continued innovation and growth in 2016 and beyond,” she added. 

Leading the Local & Mobile auction division will be Alan Lang, who was selected division vice president. Lang will be moving into this position from another post at Cox Automotive: senior vice president of operations at NextGear Capital. 

Meanwhile, Mike McKinney — the current regional vice president for Manheim’s East Operations —will be division vice president for the National segment. 

“Mike and Alan’s deep customer knowledge and experience in remarketing and operations make them ideal choices for these exciting new roles,” said Huang. “I know our employees and customers will benefit from their strong leadership.”

More details on divisions

Huang explained in an interview with Auto Remarketing that previously, Manheim’s market structure was based on geography: East and West.  

The new structure classifies the auctions, essentially, on how they serve the clients’ needs, Huang said. 

Manheim said in its statement this new alignment — based on the focus area of each auction — is designed to “to offer a nimbler, targeted approach to its dealer and commercial clients while sharpening its ability to impact their success.”

Part of the new structure will be partnerships tailored to the precise needs that clients have, “sending a strong message to dealers, especially local dealer clients, about Manheim’s commitment to their businesses,” the company said. 

Twenty-nine locations will be classified as Local & Mobile, with 50 categorized as National.  

Discussing the mobile element in more detail, Huang emphasized how this move is “signaling the importance of mobile as part of our strategy.”

Currently, Manheim conducts a monthly average of more than 25 mobile auction sales, with more than 100 dealers typically showing up at each one. 

Beyond the numbers, though, Huang said mobile says tend to help Manheim serve otherwise underserved markets. 

She gives the example of West Texas. It might not make sense for Manheim to build an auction out there or for clients to bring cars across the entire state to sell. 

But the company can meet the needs of that market by hosting a mobile sale. Some of the other areas where mobile sales are popular, she said, include the Pacific Northwest, the Dakotas, the Carolinas and Georgia. 

As for where Manheim might go next with mobile auctions, Huang said, “we’re looking everywhere, frankly.” 

As for the national segment, here’s Manheim’s explanation in the statement: “The National division will continue to offer a full spectrum of physical and digital services to Manheim dealer clients from designated Northeast, Southeast, Central and West regions. 

“In many cases, these locations will also support the company’s Vehicle Solutions. This includes its newly created Retail Solutions offering, a service that helps dealer clients focus on their used-car operations, showrooms and service bays while Manheim delivers front-line ready vehicles that meet their customers’ expectations,” it added.