KAR Auction Services announced the appointment of two new vice presidents on Friday. The company outlined that Toby Hahn has been hired as its new vice president of total rewards while Brad Jokovich has been promoted to the position of vice president of human resources.
Jim Hallett, the company’s chairman and chief executive officer, welcomed the two to their new positions within the company.
“Our talented employees play a key role in the success of the company,” said Hallett. “We are dedicated to ensuring that we continue to hire and retain the right individuals in the right positions. Toby and Brad will contribute greatly to the growth and accomplishments of the organization.”
In his new position as vice president of total rewards, Hahn will lead all activities regarding the company’s compensation, benefits and human resource management systems while also managing a team responsible for planning, designing, developing and executing strategic compensation and benefit programs across KAR’s various business units and locations.
Hahn's prior posts include time as vice president of global compensation benefits and human resources systems at Remy International, senior financial analyst of capital projects at Exempla Healthcare, and senior financial analyst at Heritage Environmental Services.
Jokovich, as vice president of human resources, will lead the HR team throughout North America and the United Kingdom. He is also now responsible for talent management, succession planning, training and development, and organizational and operational effectiveness in the HR department. Jokovich most recently served as the director of human resources at the Automotive Finance Corp.
“Toby and Brad bring many years of experience in human resources, and we are confident that their expertise as human resource leaders will assist in strengthening the success of the company’s recruitment and business initiatives,” said Lisa Price, KAR’s executive vice president of human resources.
In other KAR-related news, ADESA announced on Thursday that the company’s ongoing support of the Youth Automotive Training Center has earned the company “top contributor” status with the organization.
Over the course of the last 17 years of partnership with the center, ADESA has donated $1.8 million to the organization, which is a tuition-free, hands-on program that teaches basic automotive repair, job readiness and life management skills to at-risk young adults in the Deerfield Beach, Fla. area.
The center was established by Jim Moran, the founder of JM Family Enterprises, in 1984.
“Jim Moran was a pioneer in our industry with an incredibly generous spirit,” said Bob Rauschenberg, executive vice president of sales, marketing and special services for ADESA. “He was always so appreciative of ADESA’s donations — he treated us like rock stars.”
To learn more about the Youth Automotive Training Center, click here.
Looking back on November’s wholesale results, the picture painted is very much similar to previous months: Average auction prices were up month-over-month but flat year-over-year. And the uptick was largely due to truck prices.
Wholesale vehicle prices in November averaged $9,883, an increase of 1.1 percent compared to October. This was 0.1 percent higher than year-ago figures.
This was reflected in ADESA Analytical Services’ monthly analysis, provided by Tom Kontos, who pointed out in his Kontos Kommentary that the “strong retail demand,” especially in the certified pre-owned area, is what is maintaining the price levels despite the increasing supply.
“In short, data and other analysts are increasingly validating comments made here for many months about inevitable price softness from growing used-vehicle supply,” Kontos said. “Also as noted repeatedly here, the major saving grace keeping prices from falling further and sooner has been strong retail demand, especially for certified pre-owned vehicles.”
Kontos also pointed out that the softer pricing conditions are hitting institutional consigners more than dealers, “who have the option of retailing vehicles and only wholesaling units for which they can obtain attractive sales prices.” He said this advantage was show via strong month-over-month and year-over-year auction performance for dealer consignors.
To that end, the results for November show that the average wholesale prices for used vehicles remarketed by manufacturers were up 3.1 percent month-over-month and 4.3 percent year-over-year — and Kontos drew attention to the fact that, “manufacturers held out for their asking prices by often selling less than 50 percent of the units offered.”
Looking at vehicles in the 3-year-old segment, which Kontos used as a proxy to represent off-lease vehicles, the prices were down 3.2 percent month-over-month in November, and 9 percent year-over-year.
Utilizing data provided by NADA, Kontos showed that used-vehicle sales by franchised dealers increased 4.1 percent year-over-year while independent dealers saw their sales increase by 5.4 percent, both of which were down month-over-month.
According to figures from Autodata, CPO sales decreased by 13.8 percent month-over-month in November and 4.7 percent on a year-over-year basis. Despite that drop, overall sales remain up 8.7 percent year-to-date.
From commercial livestock to used vehicles, auctioneer Dean Fumasi has sold it all.
Now, after spending the last 30 years with the Brasher’s auction family, he has been awarded the ARI Auctioneer of Distinction award for “his dedication to ARI and the dealers in the auction lane,” becoming one of only six auctioneers to have received the award since its inception in 2011.
“Dean constantly promotes ARI and our online capabilities to provide quick answers to dealers, keeps them engaged during the sale, and truly drives the vehicle’s value in the auction lane,” said Bob Graham, vice president of vehicle remarketing at ARI. “We have noticed Dean’s exceptional auctioneering skills for quite some time, and we believe he is truly deserving of this honor.”
ARI’s vehicle remarketing supervisor Jim Jackson traveled to Brasher’s Northwest Auto Auction in Eugene, Ore., where Fumasi now works, to present the award.
Fumasi’s auction career began with auctioneering commercial livestock in 1981. He joined the Brasher’s family of auctions three decades ago, serving in the Sacramento, Northwest and Portland locations. His experience with auctioneering vary from automobiles to commercial and purebred livestock, estate, farm, specialty and black tie charity auctions.
As for his most memorable auction? A pair of African ostrich, which sold for $80,000, at a purebred ostrich/emu auction.
Auto Auction Services Corp.’s AutoIMS has announced a new Sale Calendar module that allows the consignor users of AutoIMS.com a quick-glance view of recent and upcoming auction sales.
It also allows for AutoIMS users to utilize the new tool's “Sale Snapshot” feature, which shows the run-versus-sold percentage for each recent auction.
“The feedback on this new module is overwhelmingly positive so far,” said Joe Miller, director of customer service at AutoIMS. “We are committed to increasing the value proposition of our core inventory management offering, listening to what the industry needs, and delivering against those innovative ideas.”
The Sale Calendar module allows for AutoIMS users to see the number of vehicles sold and the sale percentage for previous auction days as well as the number of vehicles set for upcoming sales along with the percentage of vehicles with a floor price. According to the company, the system is simple and color-coded, helping users recognize the areas that need the most attention.
Each calendar entry is also hyperlinked, allowing for the use of customizable reports.
“We are proud to offer this feature at the request of our consignors,” said Mike Broe, the chief executive officer of AASC. “The Sale Calendar is one of the items the industry told us would add value, and we are grateful for the ongoing support and trust our clients put in to AutoIMS by asking us to deliver for them. We don’t take that for granted, and we’re always delighted to offer new functionality as a way to express our gratitude.”
For more information on AutoIMS, visit its site here.
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.
ServNet has officially welcomed a new member to the independent auction group: Greenville Auto Auction.
The auction is located in Greenville, N.C., and is owned by the Stallings family, which has operated the auction since July 2010. It holds a weekly sale at 9:30 a.m. (ET) on Thursdays.
“ServNet’s owners and board of directors are very pleased to welcome Greenville Auto Auction," said Kevin Brown, ServNet’s president and owner of Missouri Auto Auction.
“The Stallings family and general manager Billy Willis have established a level of service that sets a high mark in their market, as they strive to continually improve the buyer and seller experience at the auction. Greenville Auto Auction is well suited to represent ServNet in their region of the country, and we look forward to collaborating with them,” Brown added.
The auction is located on 42 acres and features five lanes, plus a detail shop, light mechanical facility and a restaurant. Among its technological amenities is offering AWG Simulcast.
“We have long admired the auctions in the ServNet Group and are proud of our association with them,” said Clark Stallings, president of Greenville Auto Auction. “We have built Greenville Auto Auction on core values that the other ServNet owners share: a firm commitment to excellence, careful attention to detail and an unwavering emphasis on mutually beneficial relationships with every customer. The Stallings family and our auction team look forward to an exciting future as a ServNet auction.”
ServNet chief executive officer Pierre Pons added: “ServNet has made a solid mark on the industry since it was founded 27 years ago. A vital and driving force in the industry, ServNet continues to expand its influence regionally and nationally, with the addition of new auction locations such as Greenville Auto Auction, as well through the expansion of existing ServNet auction facilities. The Stallings family and their team at Greenville Auto Auction will ensure that ServNet’s newest auction location will offer superior opportunities for buying and selling vehicles at auction in the Southeast.”
DAASW, DAAR leave ServNet
In other news involving the auction group, Dealers Auto Auction of the Southwest and Dealers Auto Auction of the Rockies said they have exited ServNet, and will “move forward with their long-term vision to expand on their own brand identity,” according to a statement from the two auctions.
The statement notes: “DAASW's and DAAR's owners, Brad Sturgeon and Bill Baker extend their sincerest thanks for the efforts of the Group on their behalf over the past few years and wish of all their member partners continued success in the future.”
Brown, the ServNet president, added: “We appreciate the contributions and input that auction owners Brad Sturgeon and Bill Baker brought to the ServNet group during their long tenured membership. As a network of Independent auctions, we also certainly understand and respect their change of strategic direction to address industry dynamics in their markets. Brad and Bill are great business operators, and I am certain their auction sites will continue to be very successful.”
The folks at the Greater Rockford Auto Auction are set to reopen their lanes in grand fashion on Wednesday.
GRAA’s auction facilities have experienced a complete reconfiguration and remodel recently, which included moving and rebuilding all of its auction blocks as well as a complete refresh of the entire sales arena.
The updates also include a complete network rewiring, new countertops, new auction block coverings, fresh paint and a newly refinished epoxy floor.
“We are proud to officially announce the unveiling of our remodeled auction arena,” said Chad Anderson, GRAA’s general manager. “After 20 years of detailing vehicles in the same building we sell vehicles, we built a separate reconditioning facility allowing us the opportunity to remodel our auction lanes.
“We wanted to freshen up our sale lanes and provide the best possible space for our customers to conduct business. The response from our customers on the updates to the auction lanes has been nothing short of amazing.”
GRAA’s Grand Reopening sale will take place Wednesday. For more information, check out its site here.
Coinciding with the release of its first-quarter performance for its 2016 fiscal year, Copart tapped a new senior vice president of finance and chief financial officer on Tuesday; an executive who will take over the position effective Jan. 4.
Copart’s new CFO will be Jeffrey Liaw, who has served as the chief financial officer of FleetPride, a privately held company that distributes truck and trailer parts nationwide.
Copart also mentioned William Franklin, currently the company’s executive vice president and chief financial officer, will continue his role as executive vice president and be responsible for U.S. operations and shared services.
Executives said Liaw has been with FleetPride since January 2013. From August 2005 to December 2012, Liaw was a principal of TPG Capital Management, a private equity firm.
Liaw earned undergraduate degrees from the University of Texas in 1999, and he earned his MBA from Harvard University in 2005.
Q1 Results
For the three-month span that ended Oct. 31, Copart reported that its revenue, gross margin and net income came in at $288.8 million, $120.9 million and $52.4 million, respectively.
Officials computed these figures represent a decrease in revenue of $1.5 million, or 0.5 percent; a decrease in gross margin of $1.4 million, or 1.2 percent; and a decrease in net income of $0.2 million, or 0.4 percent, respectively, from the same quarter last year.
Copart added fully diluted earnings per share for the quarter were $0.42 compared to $0.40 last year, an increase of 5.0 percent.
Tender offer for common stock
Also on Tuesday, Copart announced it has commenced a modified “Dutch Auction” tender offer to purchase up to 7,317,073 shares of its common stock at a purchase price not greater than $41.00 nor less than $38.00 per share.
Executives explained the number of shares proposed to be purchased in the tender offer represents approximately 6.1 percent of the approximately 120,236,510 shares of Copart common stock currently outstanding.
Assuming 7,317,073 shares are repurchased at the maximum price of $41.00 per share in the tender offer, the company will repurchase a total of approximately $300.0 million of its common stock in the tender offer. The last reported trading price of Copart common stock on the NASDAQ Global Select Market on Monday was $37.20 per share.
The tender offer will expire at 5 p.m. ET on Dec. 23, unless extended by Copart. Executives mentioned tenders of Copart’s common stock must be made prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer.
“The tender is subject to conditions and other terms set forth in the tender offer materials that are being distributed to stockholders and filed with the Securities and Exchange Commission,” the company said.
On the terms and subject to the conditions of the tender offer, executives added that Copart’s stockholders will have the opportunity to tender some or all of their shares within the $38.00 to $41.00 per share range. Based on the number of shares tendered and the prices specified by the tendering stockholders, Copart will select the lowest purchase price within the price range that will enable it to buy 7,317,073 shares, or such lesser number of shares that are tendered and not withdrawn.
All shares accepted in the tender offer will be purchased at the same price per share even if the stockholder tendered at a lower price,” the company said.
“If stockholders tender more than 7,317,073 shares at or below the purchase price per share, Copart will purchase the shares tendered at or below the determined purchase price by those stockholders, subject to proration and certain other factors,” Copart went on to say.
All of Copart’s directors and executive officers have advised Copart that they do not intend to tender any of their shares in the tender offer.
“None of Copart, its directors and officers, the information agent, or the depositary is making any recommendation to stockholders as to whether to tender or refrain from tendering their shares into the tender offer or as to the purchase price or purchase prices at which stockholders may choose to tender their shares,” executives said.
“Stockholders must make their own decisions as to how many shares they will tender, if any,” they continued. “In so doing, stockholders should read and evaluate carefully the information in the offer to purchase and related letter of transmittal to be distributed to holders of Copart common stock,” they added.
A wide array of wholesale industry news developed in recent days, including a new philanthropic award handed out by Cox Automotive, a milestone at Dealers Auto Auction of the Southwest and a leadership change at EPI El Paso.
During the accolade-filled luncheon at the National Remarketing Conference, Cox Automotive presented its inaugural Community Impact Award to Joey Huang of Great Lakes Auto of Ashtabula, Ohio. Presented by Grace Huang, senior vice president of inventory services at Manheim, this award recognizes a remarketing industry leader for their outstanding contributions to their community and the innovative ways they collaborate with community partners to help further their missions and shape better communities.
“Community service and inspiring others to shape a better world has long been a part of our culture,” Grace Huang said. “I’d like to congratulate Joey for embodying these principles and for demonstrating how every person, every organization, every day can make a difference when it comes to serving their community.”
Joey Huang, owner of Great Lakes Auto, was honored by Cox Automotive for distinguishing himself in outstanding service to his community. Top among his many accomplishments was the creation of a program throughout his dealership network that helped raise more than $200,000 for local schools during the past four years.
As chairman of Hyundai Motor’s Hope on Wheels charity, Huang partnered with Cleveland area Hyundai dealers to raise $50,000 for the Rainbow Babies and Children’s Hospital to benefit pediatric cancer research.
In addition to his fundraising efforts, Huang has offered his time to numerous civic and industry organizations over the years, including the Ashtabula County YMCA where he serves as a member of its board of directors and helps guide facility improvements.
“I am honored to be the first recipient of the Cox Automotive Community Impact Award and to be recognized for creating positive change in my community,” Joey Huang said.
For his leadership and commitment to making a difference through community service, Huang will receive a $10,000 donation to the charity of his choice.
“This will allow us to continue doing the things we are passionate about not only at our dealerships, but throughout our community,” Joey Huang added.
Anniversary in Arizona
Dealers Auto Auction of the Southwest general manager Stephanie Gingras recapped how the operation recently celebrated its 13th year with an anniversary month of sales in October, culminating in a Halloween event marked by 700 vehicles crossing the block and a 70-percent sale.
“Since DAA Southwest was opened 13 years ago, we’ve not only grown to lead our market niche but have set a new standard with innovation and efficiency,” Gingras said.
“To mark this year’s anniversary, we focused on thanking our customers for their years of loyalty and support and had a great time doing it with a Halloween costume party and an exciting prize giveaway, sending one of our great buyers home with a Nissan sedan,” she continued
Gingras noted that all customers buying vehicles at DAA of the Southwest during the month of October qualified for the grand prize giveaway.
“We haven’t become number one in our market without a heavy dose of superior customer service,” said auction vice president and past NAAA president Jim DesRochers.
“We have worked hard and successfully to identify buyers who target our specific market niche, and we’ve made those buyers regular auction customers by providing them with all the technology and mobile tools they need to easily and efficiently access all of our services,” DesRochers continued.
Technology features available to DAA of the Southwest’s customers include:
— The DAASW mobile app with integrated digital bidder badge
— Customer online access to account information via the mobile app and auction website
— 100 percent simulcast of every consigned vehicle at every sale
— Direct access to key auction personnel via mobile technology
— Seamless wireless uploads via iPad of all condition reports, images and videos for every consigned unit in every sale
“Our 360 Degree Customer Service Program has changed the way business is handled at DAA of the Southwest,” Gingras said. “Including CARFAX Transparent Transactions, Mexico Ready and digital bidder badges, along with direct access to all areas of our staff and management, our 360 Customer Service tools are all DAASW.com and .MX's proprietary products that you won't see at any other auction.”
In addition to technological enhancements, the auction has also noted steady increases in vehicle volume over the past 12 months, resulting in the opening of a sixth auction lane in January. Gingras explained that increases in consignment volume from both the repo and dealer segments of the market prompted the sale-day expansion.
“DAA of the Southwest provides the best market for buying and selling vehicles in the region, and has the customer service programs to make the process as efficient and convenient as possible,” Gingras said.
“We’re proud of the advancements we’ve made over the past 13 years, and look forward to continued growth, success and innovation in the years ahead,” she went on to say.
EPI El Paso names general manager
Auction president Bob McConkey and general manager Lori Pidgeon shared this news with El Paso customers during the auction’s Touchdown Drive promotional event sale: in a move that was effective last week, Pidgeon transitions from EPI’s general manager into a new role with the McConkey Auction Group.
Luke Pidgeon, who has served as EPI El Paso’s assistant general manager since 2013, assumes the role of general manager.
“Lori came to us with over 20 years of auction experience, and she has done an outstanding job of building a solid team in El Paso,” McConkey said. “As a member of that team, Luke has earned the upmost respect of EPI’s staff and customers; he possesses the knowledge and leadership skills to build upon the legacy that Lori has established.
“We congratulate Lori on her success and we are thrilled to keep her on our team as her role evolves,” McConkey added.
While eager to return to the Pacific Northwest, the operation acknowledged Lori Pidgeon departure from El Paso is bittersweet.
“The past five years have been extremely rewarding, both professionally and personally,” she said. “It was a privilege to guide a team of hard working, caring employees in developing a solid footprint in El Paso.”
Lori Pidgeon’s new position with the McConkey Auction Group will include working on special projects, human resources and more for all four MAG locations. She will be based in Portland, Ore.
Ally Financial, in partnership with local dealer Classic Chevrolet of Grapevine, Texas, recently presented over $180,000 in donations to ten charities in the Dallas area.
The donations culminated from an auction hosted by Ally’s SmartAuction platform, which celebrated its 5 millionth vehicle sale. That 5 millionth vehicle was auctioned off with the promise that the proceeds would be donated to the auction winner’s selected charities.
As you probably guessed, Classic Chevrolet won that bid and selected ten local charities to receive the donations.
"It's great to be able to celebrate such an important milestone by giving back to a dealer that uses SmartAuction to buy and sell vehicles," said Steve Kapusta, vice president of dealership online services and remarketing at Ally. "Tom Durant of Classic Chevrolet is an outstanding member of the community, supporting many local charitable organizations, so it is our honor to support his efforts with these grants."
The organizations that received the grants included: 6 Stones Mission Network, Christ's Haven for Children, The Angel Fund of Trinity High School, RISE Adventures, Grapevine Relief and Community Exchange, Food for the Soul, VAST (Valuable After School Time), Christian Community Storehouse of Kelleher, North Texas SNAP and Neuro Fitness.
"Ally's SmartAuction platform is an important tool for us when buying and selling inventory, so it was great to take part in the charity auction," said Tom Durant, owner of Classic Chevrolet. "We are incredibly proud that the funds from this auction will help many organizations in our community that make a difference in so many lives."
