As part of what the auction company called its continuing focus on developing talent and improving its customer experience, Manheim named three veterans to manager positions at Manheim Fredericksburg, Manheim San Antonio and Manheim El Paso.
The company announced on Tuesday that Craig Amelung now is general manager at Manheim Fredericksburg while Mike Browning now is general manager for Manheim San Antonio. The company also promoted Brian Walker to be auction manager at Manheim El Paso.
“It is always exciting to promote great talent, which is a key part of motivating employee teams and delivering a great experience for customers,” said Mike McKinney, Manheim’s regional vice president for East region operations.
“These three dynamic leaders, all with a long history with Manheim, will use their expertise and experiences to deliver solutions that help our customers succeed,” McKinney continued.
Rock Anderson, Manheim’s regional vice president for West region operations, also shared praise for the new appointments.
“These gentlemen are a true testament to Manheim’s goal to put the right leaders in place to drive business growth and expand our customer base,” Anderson said. “Our customers will benefit from the leadership and industry knowledge and insights these individuals provide.”
A veteran of more than 25 years in the remarketing industry, Amelung assumed his new role in March. He returned to the field after four years at Manheim’s corporate office in Atlanta as Manheim Fredericksburg’s assistant general manager in June of last year.
In 2011, Amelung was promoted to senior director of operations support, and was responsible for managing the company’s support and training efforts for all field operations departments at all Manheim’s North American operating locations. Amelung became Manheim’s director of best practices in 2009, and led the company’s efforts toward standardizing processes and procedures throughout the country.
Amelung joined Manheim Virginia in Greenfield, Va., as general manager in 2004. He was named assistant general manager at Manheim Fredericksburg in 2002 after serving in various roles at Manheim Baltimore/Washington from 1993 through 2002.
A 24-year veteran of the automotive industry, Browning has served as general manager at Manheim Mississippi since 2007. The company indicated he will transition to his new role over the next few weeks.
Browning currently serves as vice president of the National Auto Auction Association.
Browning joined the company in 2003 as general manager at Manheim New Orleans. At Manheim New Orleans, Browning spearheaded the charge to rebuild a strong customer base, resulting in a 200-percent increase in revenue.
Since joining Manheim 11 years ago, Browning has focused on reaching financial goals and building engaging relationships with both employees and customers. He has identified partnerships that are impactful locally and nationally.
Browning spent 13 years in the retail side of the business, and has been a member of the National Independent Auction Dealers Association and other regional independent auction associations before joining Manheim.
Walker, who joined Manheim in 2008 in the commercial department, has been promoted to auction manager for Manheim El Paso. Walker began his new role on March 17.
In January, Walker and his team received the honor as overall highest performance for 2013 at the company’s national sales meeting. Manheim El Paso was also named 2013 Capital One Auction of the Year for the Southwest Region.
Walker was promoted to commercial/dealer services manager at Manheim El Paso in 2010.
Prior to joining Manheim, Walker held several sales management roles in different industries, including pharmaceutical sales, medical staffing and healthcare. He is an IARA Certified Remarketer.
ADESA Golden Gate has picked a new general manager.
Revealed late last week, Jeff Hoyt has taken on the role of GM.
Commenting on the news, ADESA president and chief executive officer Stéphane St-Hilaire said, “Jeff has dedicated himself to making ADESA Golden Gate one of our top auctions for more than 20 years.
“I am excited to have him now lead the team,” he added.
Hoyt has been with the company for over 20 years, first joining ADESA in 1992 as fleet lease manager.
Prior to that he was employed by Bay Cities Auto Auction where he served as Ford Factory Turn Back Manager and oversaw the fleet lease sales department.
Jeff is a graduate of the Western College of Auctioneering in Billings, Mont.
To support the Keystone Wounded Warriors organization, Manheim Pennsylvania recently raised $70,000 as a donation to Keystone Wounded Warriors, which is a portion of proceeds from the third-annual Xtreme Spring Event.
Auction officials highlighted a spring charity gala to benefit veterans also was held as part of two-day event.
Manheim Pennsylvania hosted what it called the world’s largest highline vehicle auction — a “100 Grander” sale — featuring a 2008 Bugatti Veyron, many Rolls Royce, Ferrari, Maserati, Lamborghini models and other high-dollar vehicles on March 20.
Additionally, Ultra Highline, Corvette, Motorcycle and Classic Car auctions were held on March 21.
A portion of the proceeds from the Xtreme Spring Event benefitted the Pennsylvania-based Keystone Wounded Warriors. This year’s donation marks a $20,000 increase over the donation made to the Wounded Warrior Project in 2013.
During the past two years, Manheim Pennsylvania raised $110,000 for Wounded Warrior Project.
“Our organization greatly appreciates the efforts of Manheim Pennsylvania, its staff and customers,” said Paul Spurgin, director and co-founder of Keystone Wounded Warriors.
“We depend on the generosity of companies like Manheim to be able to provide the support and services our veterans need,” Spurgin continued. “We are very grateful for this donation, and look forward to a continued partnership with Manheim.”
Julie Picard, vice president and general manager of Manheim Pennsylvania, shared her thoughts on the philanthropic event.
“We are so proud to support the Keystone Wounded Warriors and the Pennsylvania veterans it impacts,” Picard said.
“Our third-annual Xtreme Spring Sale was extra special for Manheim Pennsylvania because we were able to support such a deserving organization,” she continued. “Giving back to the community is an important value of Manheim and its operating locations.”
Winter was tough this year, even for residents of New York who are accustomed to heavy snows.
But one ServNet auction demonstrated its “snowhow” in overcoming the weather to record new sales records.
"We have been in the auction business since 1981, but 2014 will go down in history as perhaps the toughest winter we have ever had to contend with," said Jeff Barber, president of founding ServNet member State Line Auto Auction in Waverly, N.Y.
State Line utilized its snow removal equipment to keep business rolling, equipment which can push or lift close to 300 lineal feet — basically, a football field — of snow at once.
"But as important as that equipment is, it's our people that allow us not just to survive, but to thrive during a snowstorm,” Barber said.
Week after week this winter, State Line employees uncovered cars buried in snow up to their door handles, and pushed or pulled them to the clean-up shop or other destinations.
The extra work was with it, Barber noted.
"In spite of extreme weather challenges, we've been able to keep auction operations rolling smoothly all winter, and we've set new records of our own in the process," he said. "We broke an all-time February sales record on Feb. 14, and surpassed that mark two weeks later on Feb. 28 when we sold 905 vehicles!
"We have the best people in the business here at State Line Auto Auction, and it's their hard work and dedication that keep us operating in such a tough environment," Barber said. "This year we proved our ‘snowhow,’ but we can't wait for spring!"
Dealers are scouring the lanes trying to find inventory to prosper during tax season. The daily result is that Black Book editors are seeing some of the highest levels of price adjustments.
Black Book editorial director Ricky Beggs shared in his weekly online video commentary that since the first of February, editors have averaged 1,820 adjustments per day with the lowest daily average during any one week being 1,619.
Beggs highlighted that editors recorded 2,150 adjustments per day this past week, representing the second-highest level since the week ending Dec. 13, which was the peak level for the past year at 2,380 per day.
“The difference between the two most active high water mark weeks was that in last December, only 27 percent of the adjustments were increases, and this past week at 56 percent, you are able to see not only the tremendous activity, but the overall strength in the market,” Beggs said during his latest edition of “Beggs on the Used Car Market.”
Beggs noted another sign of a very active market: Black Book noticed activity in four segments where more than 30 percent of all models within that specific segment posted increasing price adjustments, led by 46 percent of the entry-level cars.
“Counting all adjustments, increases and decreases, the entry level cars segment had 62 percent of all models adjusted,” Beggs said. “This was only topped by the 63 percent of all full-size pickups being adjusted, including increases and decreases.
“All told, eight of the 24 segments tracked and reported by Black Book had at least 40 percent of the vehicles listed in those segments adjusted. What an active and moving market,” he went on to say.
While the daily price adjustment levels are keeping editors busy, Black Book reported car prices softened more last week than they did a year ago.
Beggs indicated the overall average price change for cars came in at a decline of $18, more than the same week a year earlier when car prices softened $8. He mentioned it was also the lowest declining amount since the week ending April 26 of last year when the price decline was $14.
For three consecutive weeks Black Book noticed prices for entry level cars, entry midsize cars and upper midsize cars have had weekly increasing changes.
“Each of these three segments was also weekly increases for the year ago period,” Beggs said.
On the truck side, Black Book said average prices for these units dipped by $10 for the second week in a row, slightly more than the same week a year ago when the price decline was $7.
“This past week six truck segments had increasing weekly changes with only the compact crossovers having back-to-back weekly increases,” Beggs said. “One year ago there were also six increasing segments of which the compact crossovers were increases then as well.”
As he has for several weeks, Beggs wrapped up his weekly commentary by dissecting another element of why tax season is one of the most unique times in the wholesale market.
“Oftentimes we see and talk about seasonality within the market. If there is one point in time each year that is a constant in movement direction and amount, it has to be the current tax season market. The results of the market this past week are so similar to the level of changes one year ago,” Beggs said.
“I know there continues to be blasts of cold weather in many parts of the country, but here in the Southeast there are very small signs of spring about to blossom,” he continued. “Daylight saving time has brought us longer evening hours of sunlight, which often keep the open sign on the showroom door longer each day. This might be what keeps the tax season going and even more activity within the new car markets.
“We will be back on the auction lanes this week to see if the market strength continues,” Beggs went on to say. “And if this next week tracks similar to year ago levels, the market will react even better. March madness is happening in the lanes as well as the hard courts.”
ADESA’s Tom Kontos pointed to two factors as to why February’s wholesale price movement ended up being “atypical.”
According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, used vaules in February averaged $9,839 — down 1.4 percent compared to January, but up 0.9 percent relative to February of last year.
Kontos mentioned in his monthly commentary that compact cars and vans, which are popular rental and fleet vehicles, were the only segments that had both monthly and annual price gains.
“Wholesale prices were down in February versus January, a-typical of their seasonal pattern, but were up modestly on a year-over-year basis, despite continued wholesale supply growth coupled with weaker retail demand limited by severe weather conditions,” Kontos said.
“This unusual pattern would indicate that dealers were fairly aggressive in proactively bidding in-lane and online for the vehicles they need for the budding spring market, especially highly certifiable off-rental program vehicles remarketed by auto manufacturers,” he went on to say.
ADESA indicated prices for used vehicles remarketed by manufacturers moved up 1.3 percent month-over-month and 6.3 percent year-over-year. Kontos reiterated that manufacturers capitalized on strong demand for certifiable units.
Analysts also mentioned prices for fleet/lease consignors softened 0.5 percent sequentially, but climbed 1.1 percent annually.
Furthermore, ADESA noted dealer consignors saw a 1.1-percent average price increase versus January and a 0.9-percent uptick versus February of last year.
Kontos wrapped up his commentary by recapping CNW Research information that indicated retail used-vehicle sales dropped 15.6 percent month-over-month “as severe weather again negatively impacted auto shopping.”
Meanwhile, Kontos mentioned Autodata Corp. information that showed sales of certified pre-owned vehicles in February rose 7.7 percent above the prior month and 14.1 percent above the prior year
“The strong certified sales may have been a factor in strong pricing for off-rental program units sold by the manufacturers,” he said.
ADESA's Wholesale Used-Vehicle Price Trends
| |
Average Prices ($/Unit) |
Latest Month Versus: |
| |
Feb-14 |
Jan-14 |
Feb-13 |
Prior Month |
Prior Year |
| |
|
|
|
|
|
| Total All Vehicles |
$9,839 |
$9,983 |
$9,747 |
-1.4% |
0.9% |
| |
|
|
|
|
|
| Total Cars |
$8,776 |
$8,869 |
$8,854 |
-1.1% |
-0.9% |
| Compact Car |
$7,130 |
$7,010 |
$6,910 |
1.7% |
3.2% |
| Midsize Car |
$8,140 |
$8,258 |
$8,262 |
-1.4% |
-1.5% |
| Fullsize Car |
$6,889 |
$6,771 |
$7,413 |
1.7% |
-7.1% |
| Luxury Car |
$11,999 |
$12,209 |
$11,963 |
-1.7% |
0.3% |
| Sporty Car |
$12,002 |
$12,343 |
$12,144 |
-2.8% |
-1.2% |
| |
|
|
|
|
|
| Total Trucks |
$10,239 |
$10,438 |
$9,531 |
-1.9% |
7.4% |
| Mini Van |
$7,609 |
$7,448 |
$6,910 |
2.2% |
10.1% |
| Fullsize Van |
$10,907 |
$10,341 |
$9,952 |
5.5% |
9.6% |
| Mini SUV |
$11,988 |
$11,987 |
$10,993 |
0.0% |
9.1% |
| Midsize SUV |
$7,324 |
$7,503 |
$6,560 |
-2.4% |
11.6% |
| Fullsize SUV |
$10,652 |
$10,981 |
$10,130 |
-3.0% |
5.2% |
| Luxury SUV |
$18,210 |
$18,941 |
$18,583 |
-3.9% |
-2.0% |
| Compact Pickup |
$7,260 |
$7,362 |
$7,459 |
-1.4% |
-2.7% |
| Fullsize Pickup |
$12,460 |
$12,632 |
$11,532 |
-1.4% |
8.0% |
| |
|
|
|
|
|
| Total Crossovers |
$12,615 |
$12,768 |
$13,398 |
-1.2% |
-5.8% |
| Compact CUV |
$11,480 |
$11,553 |
$11,873 |
-0.6% |
-3.3% |
| Mid/Fullsize CUV |
$13,791 |
$13,999 |
$14,916 |
-1.5% |
-7.5% |
KAR Auction Services Amends and Restates Credit Agreement
In other company news, ADESA parent KAR Auction Services announced Tuesday that it amended and restated its credit agreement dated as of May 19, 2011.
Officials explained the term loans under the original credit agreement have been repaid in full and terminated, and refinanced with a $650 million three-year senior secured term loan B-1 facility and a $1.120 billion seven-year senior secured term loan B-2 facility.
In addition, KAR noted the amended and restated credit agreement also established a five-year $250 million revolving credit facility in place of the previous revolving commitments. The interest rate of term loan B-1 was reduced to LIBOR plus 2.50 percent.
The company computed the interest rate of term loan B-2 remains at LIBOR plus 2.75 percent but the LIBOR floor was reduced to 0.75 percent.
“The reduction in pricing is expected to save the company an annualized amount of approximately $9 million in cash interest,” KAR said. “The revolving commitments may be used for ongoing working capital needs and general corporate purposes for the company and its subsidiaries. The company has not drawn any amounts under the revolver.”
As Dealers Auto Auction of Idaho gears up to celebrate its 13th anniversary with a major giveaway, the National Auto Auction Association and Black Book have teamed up to present the inaugural Black Book Pedal Car Auction.
The association announced the charity event will be held at the 2014 NAAA Annual Convention this September in Boston with the goal of raising $50,000 for its nonprofit Warren Young Scholastic Foundation.
The four NAAA chapters each selected three pedal car sponsors to be the dozen finalists in the fall show and auction. A lottery choosing the order of the auction’s run list will be held at the National Independent Automobile Dealers Association Convention in June.
To get a leg up on the competition, the rules allow the sponsors to modify new or pre-owned pedal-powered vehicles — whether trains, planes or automobiles (but no carts) — as much as their imagination and skill would permit. That includes paint, decals, graphics, exhausts, lights, sirens and other parts or accessories.
The pedal car bringing the most money wins the Best in Show title, along with being featured on both the cover of NAAA’s On the Block magazine and 2015 Directory.
Awards will also be given for Most Creative, Best Custom, Best Accessories and Most Unusual Paint Job categories as determined by the four NAAA Chapter presidents. An article about all the pedal cars and the event will appear in an issue of On the Block.
“We thought this offered our members a great way to demonstrate their creativity and abilities in a friendly competition while raising money to support our scholarship fund, which helps deserving students achieve their dreams of higher education,” NAAA president Jack Neshe said.
Neshe noted that since its creation in 2004, the Warren Young Scholastic Foundation has raised more than $1.5 million and awards a total of $40,000 in merit scholarships annually for full-time study at an accredited institution. It was named in honor of Warren Young, Sr., a pioneer of the auto auction industry who retired after 35 years of devoted service to his profession and the NAAA.
“We are big supporters of the Warren Young Scholastic Foundation and believe in giving back and supporting this terrific cause,” Black Book President Tom Cross said. “We also believe in the NAAA and will do whatever we can to lend a hand.
Dealers Auto Auction of Idaho Anniversary Plans
Dealers Auto Auction of Idaho, a member of the Founders Auto Auction Network, is celebrating 13 years in business in a big way by giving away a 2014 Nissan Versa.
“We wanted to come up with something we have never done before to make this anniversary stand out from all the rest,” said Russ Smith, owner of Dealers Auto Auction of Idaho and NAAA Western Zone vice president.
DAA of Idaho fleet/lease manager Britney Smith wants to make sure the auction’s customers know how grateful the operation is for support during the past 13 years.
“Our customers are very important to us. We want to make sure they know how much we appreciate them. The fact that they take time out of their busy schedules to visit us each week means a lot, so what better way to show that appreciation than by giving them a chance to win a new car,” Smith said.
Every Wednesday in March, five dealers will be drawn and given a key. Then on March 26, each dealer will try their key, and the key that starts the vehicle will be the winner.
The DAA of Idaho anniversary sale will take place next Wednesday (March 19) and feature vehicles from Westlake Financial, ARI, SRG, Emkay, United Auto Credit, Lobel Financial and many more. Franchised stores and independent dealers will also be participating with Dennis Dillon Nissan, Team Mazda Subaru, Edmark Superstore, Bronco Motors, Lithia Chevrolet and more on the docket.
Smith indicated there will be four lanes with more than 600 vehicles.
All of the Wednesday Sales will be available to bid online through Auction Pipeline under Nampa, ID.
For more details, contact Dealers Auto Auction of Idaho at (208) 463-8250 or visit www.daaofidaho.com.
