Lynnway Auto Auction and its president James Lamb have each been indicted by a Massachusetts grand jury on five counts of manslaughter, stemming from a fatal 2017 crash at the Billerica, Mass., auto auction.
That’s according to a news release from the office of Middlesex District Attorney Marian Ryan, which said the Middlesex Grand Jury on Thursday returned direct indictments of five counts of manslaughter against Lamb and five counts against Lynnway.
The Middlesex District Attorney’s Office, Billerica Police Department, the Massachusetts State Police Collision Analysis and Reconstruction Section and the Occupational Safety and Health Administration investigated the crash, which involved a 2006 Jeep Grand Cherokee that “entered the auction showroom at a high rate of speed and drove into the designated pedestrian area striking several people, and crashed through the cinderblock wall,” the news release said.
The indictments represent one count for each fatality that stemmed from the crash, which occurred on May 3, 2017.
Two victims were pronounced dead on scene, and another was transported to a local hospital and subsequently died there from her injuries, the news release said. Nine others were taken to local hospitals. An additional two victims died later from their injuries.
“These indictments allege that the company and Mr. Lamb are criminally responsible for willfully, wantonly and recklessly failing to take appropriate actions that could have prevented the death of five people,” the district attorney’s office said in the news release.
“After an extensive examination of the crash, investigators determined that Lynnway Auto Auction Inc. and James Lamb, who was responsible for day-to day operations, were aware of shortfalls in the safety measures in place at the auction facility and that they failed to ensure that all drivers were properly licensed and trained,” it continued.
“As part of the investigation into this incident prosecutors also reviewed reports by the Occupational Safety and Health Administration (OSHA) as well as incident reports generated by Lynnway Auto Auction which described previous instances in which Lynnway employees were struck by vehicles or otherwise injured in unsafe conditions,” the DA’s office said. “Lynnway had previously been notified that they should not employ unlicensed drivers. Despite these recommendations, Lynnway and Mr. Lamb did not ensure that operators had driver’s licenses, and the employer did not train or ensure the employees knew how to operate the vehicles.”
The statement later noted: “These charges are allegations, and the defendants are presumed innocent until proven guilty. An arraignment date for Mr. Lamb has not yet been scheduled.”
The driver of the vehicle involved in the crash will not face charges, the DA’s office said. The driver did have an expired driver’s license, but Massachusetts law allows individuals to drive vehicles on private property even if they don’t have a license.
“The Lynnway facility is not a public way; therefore the Commonwealth has determined that it would not be able to meet its burden of proof beyond a reasonable doubt that the driver of the vehicle acted recklessly, and therefore he has not been charged with manslaughter,” the DA’s office said.
More details are available in the news release from the DA's office.
It was reported in Auto Remarketing last week that Lynnway Auto Auction had been purchased by America’s Auto Auction. Details on that acquisition are available here.
A company description for KAR Auction Services states that it offers “innovative, technology-driven remarketing solutions” to the global wholesale used-vehicle industry.
Now, the company’s Insurance Auto Auctions business is making an investment to take that innovation further.
In what the division is describing as “an insurance claims and remarketing industry first,” IAA is investing in an innovation hub at “1871,” which IAA states is the largest technology incubator in North America.
The 1871 site is located in Chicago’s Merchandise Mart, and as part of that site, IAA Engine House will be “an ideation and development center,” IAA said. At that site, IAA employees will engage in collaboration with educators, investors, mentors, technologists, buyers and sellers.
“Our insurance and automotive remarketing customers require solutions that help them decrease cycle time, increase efficiency, make data-driven decisions and, above all, improve their economic returns,” IAA chief executive officer and president John Kett said in a news release.
“We are making strategic investments to help fuel more rapid progress in the industry," Kett continued. "Being in an environment where we can share ideas and collaborate with universities and startups that are advancing technology gives us the advantage to lead the innovation of our industry.
"We can work to enhance our current technologies, but more importantly, to develop the solutions of the future," he went on to say.
The location, 1871, consists of 140,000 square feet of collaboration space. More than 1,000 inventors, designers and creators and more than 500 startups call 1871 home. The space includes various industries, and representatives of those industries share advancements and findings.
A rotation schedule of up to 20 Insurance Auto Auctions employees at a time will help as many IAA employees as possible gain exposure to the culture and shared knowledge at 1871. Each year, IAA will have access to more than 350 mentors and 1,000 events and learning programs. Activities such as client meetings, ideation sessions and product development and launch gatherings will take place at Engine House.
“IAA Engine House at 1871 will help us to foster a culture of innovation, generate ideas and launch them to full-fledged products or solutions — all while exercising an entrepreneurial spirit,” Kett said.
A new partnership aims to transform independent and specialty auctions’ static vehicle merchandising pages into “interactive digital experiences.”
Auction Edge, a technology provider for independent auto auctions; and automotive digital merchandising company SpinCar are now working together to bring 360° Walkarounds to the auctions. The companies say that the technology helps wholesale vehicle buyers explore every aspect of a vehicle’s interior and exterior condition. That means independent auctions and consignors can offer more transparency to the auction process.
Auction Edge says the new integration makes it the first auction technology company that offers interactive vehicle display pages to wholesale buyers and sellers.
Auction Edge’s national wholesale marketplace—EDGE Pipeline—as well as EDGE Lookout, which powers websites for various U.S. independent auto auctions, are among the Auction Edge platforms through which SpinCar’s technology is available.
SpinCar notes that its 360° WalkAround and Feature Tour technology brings the physical showroom experience to car shoppers wherever and whenever they want. The company notes that car shoppers across 15 countries have experienced more than 200 million virtual WalkArounds.
“We're incredibly excited for this partnership with Auction Edge,” SpinCar chief executive officer Devin Daly said in a news release. “As the auction industry continues to move online, building trust between wholesale buyers and sellers is critical. We look forward to working with Auction Edge to enable independent auctions and vehicle sellers to harness the power of advanced digital merchandising technology for greater transparency and business success.”
Auction Edge senior vice president of auction systems Julie Warpool added that independent auctions are a “thriving channel” for vehicle transactions.
“Working with SpinCar is a natural fit as we continue to enhance our ecosystem of tools to help independents serve buyers and sellers with greater transparency and more options for evaluating vehicles,” Warpool said.
Nick Peluso has another wholesale-industry accolade to add to his mantle.
Peluso became the sixth-ever recipient of the Bobit Industry Icon Award in recognition of his bold vision, technological innovation and dynamic leadership. The National Auto Auction Association (NAAA) and the International Automotive Remarketers Association (IARA) honored the president of Manheim Digital Marketplace at the 2019 Conference of Automotive Remarketing (CAR) unfolding this week in Las Vegas.
The organizations jointly created the annual award in 2015 commemorating the late Ed Bobit, founder of Bobit Business Media, to be given to members of the automotive community who most exemplify his leadership, dedication, service and devotion to the ideal of excellence.
As Manheim Digital Marketplace's top executive, Peluso leads a team focused on accelerating portfolio management for clients through intelligent remarketing solutions and advanced data analytics. He oversees the digital portfolio of brands that include Manheim.com, Manheim Express, Simulcast, OVE and RMS Automotive’s global business.
“Nick is a mover and shaker who has helped kickstart various businesses within the Cox Automotive family,” NAAA president Chad Bailey said during the presentation ceremony. “He’s the link in the chain that pulls all the parts together by fostering a strong collaborative culture, which he believes is fundamental to continued growth, engagement and expansion.”
Under Peluso’s management, Manheim Marketplace has achieved record growth across its U.S. digital channels, surpassing two million transactions for the first time to become a leader in the market through artificial intelligence, technology, and industry perspectives.
An industry veteran with more than three decades of experience, Peluso spent a dozen years in various senior executive leadership positions with ADT Automotive, including as vice president of sales and marketing, before joining Cox Automotive in 2000. There he soon became senior vice president of customer management for Manheim with responsibility for commercial and dealer sales, marketing, and Manheim consulting prior to being named the president of Cox’s RMS Automotive in 2014.
His professional achievements and contributions to the industry have earned him a reputation as a thought leader who is requested regularly to speak at such key events as the National Remarketing Conference, which celebrates its 20th anniversary, Conference of Automotive Remarketing and National Automobile Dealers Association convention, as well as events hosted by IARA and NAAA.
Peluso resides with his wife, Jessie, in Las Vegas, where he gives back to his community by participating in the Kyle Petty Charity Ride Across America (KPCRAA) to raise funds and awareness for Victory Junction and other charities supporting chronically ill children. He also participates in the annual Las Vegas Governor’s Black-Tie Event that raises funds to support various nonprofit organizations aiding children and families in need throughout Las Vegas.
In his free time, Peluso enjoys cycling, a good game of golf and his new role as a grandparent.
As the 2019 Industry Icon recipient, Peluso is only the sixth person to be given the prestigious award. Previous recipients include:
— KAR Auction Services chief executive and chairman of the board Jim Hallett
— Industry mogul Mike Hockett Sr.
— ADESA executive vice president and chief economist Tom Kontos
— Former Manheim chief economist Tom Webb
— Ty Bobit, president and CEO of the media company founded by his father in 1961
Black Book executive vice president of operations Anil Goyal made the call.
“The spring market is here,” Goyal said in a segment of this week’s Black Book Market Insights report that illustrates the strength of the spring market where several midsize cars and van segments posted a notable increase.
“Led by midsize cars and minivans, the used-vehicle market showed a seasonal lift,” Goyal added in the report.
Based on volume-weighted information, editors indicated overall car segment values increased by 0.12 percent last week. That’s much different than what they spotted during the previous four weeks as Black Book had car segment values softening by 0.38 percent on average.
As Goyal noted, midsize cars led the way by rising 0.52 percent or $41.
Again connected to volume-weighted data, editors determined overall truck segment values (including pickups, SUVs and vans) decreased by only 0.19 percent last week. That’s less than half of the four-week average, which was 0.41 percent.
In the truck space, minivans experienced the highest increase, jumping by 0.43 percent or $46.
And now what Black Book representatives stationed at nearly 60 sales nationwide noticed, here are the anecdotes that lane watchers shared:
—From Georgia: “Lower priced crossover SUVs are selling the best. Dealers are saying that they have not seen an abundance of customers with tax refund checks yet.”
—From Indiana: “A good sale, including lots of lease returns and daily rentals, with all selling well. Prices seem to be experiencing an uptick.”
—From Florida: “There was a good crowd today. Prices were up on small and midsize SUVs while trucks and full-size SUVs had either no price change or were down a little.”
—From California: “The sale was very strong with lots of bidding activity and higher prices.”
Service and software company AutoTec has promoted Charlie Adams to senior vice president and chief operating officer of AuctionACCESS.
Adams, who joined the AutoTec team in 2011 and most recently served as vice president of business development for the AuctionACCESS product, will manage daily operations of the AuctionACCESS platform including its sales and customer support teams.
Adams’ work in leading the company’s VIN CrossCheck platform will continue. AutoTec works in areas such as insurance, credentialing, vehicle history and dispute resolution, and AuctionACCESS is a central credentialing product for the wholesale automotive industry.
“I’m excited about the future of AuctionACCESS and look forward to continuing to work with our team to provide a secure and efficient credentialing solution for our dealer and auction partners,” Adams said in a news release. “The AuctionACCESS team is committed to delivering quality service for our partners and we look forward to delivering innovative solutions that create a better auction experience.”
AutoTec chief executive officer Chuck Redden added, “Charlie has done a tremendous job helping grow AuctionACCESS, as well as improving the customer experience for both dealers and auctions.”
Data from the first two months of the year prompted J.D. Power Valuation Services to revise its wholesale price forecast for 2019.
And depending on the state of your dealership, the updated prediction could be valuable information to help sharpen your used-car strategy.
“With January and February’s weaker-than-expected performances, 2019’s outlook has worsened,” J.D. Power Valuation Services executive analyst David Paris said in a news release. “As a result, prices are forecast to fall by around 3 percent.
“Increasing levels of used supply, along with more volatile credit conditions and increasing gasoline prices, are expected to apply downward pressure on the used side of the market,” Paris continued.
The used-vehicle market continued its sluggish start to the new year, and as a result the J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index declined 1.3 points in February relative to January to 116.1.
Analysts explained in the latest installment of Guidelines that February’s decline marked the sixth consecutive month of declines in the used market and is “a trend we should expect to see more of throughout the course of 2019 as used-vehicle prices are expected to decline relative to 2018.”
J.D. Power Valuation Services elaborated about reasons for wholesale price weakness so far this year.
“In January the industry faced challenges because of extreme winter weather conditions as well as the 35-day government shutdown,” analysts said in the report. “The used market typically heats up in February; however, the month faced its own unique obstacles which suppressed the growth we normally see in used-vehicle prices.”
J.D. Power Valuation Services then drilled deeper into another attention-getting factor — concerns over tax law changes that have led to smaller refunds for many Americans as both the new- and used-vehicle markets benefit from tax refund season.
According to IRS Filing Season Statistics through the week ending Feb. 15, J.D. Power Valuation Services noted the total number of refunds issued was down 26.5 percent, while the average refund amount was down 16.7 percent relative to the same period in 2018.
However, the refund situation improved over the second half of the month. Through the week ending March 1, J.D. Power Valuation Services pointed out the total number of refunds issued increased but was still down 4.2 percent. However, the average refund amount reached $3,068, or a 0.7 percent improvement relative to the same period in 2018.
“During this time of the year, early filers begin receiving their federal refunds, which can be applied as healthy down payments for a new- or used-vehicle purchase. This was not the case through the first half of February,” analysts said in Guidelines.
“It does take time for taxpayers to receive and recognize their individual refunds; ultimately the improvement was likely too late to help the February’s result,” they continued.
Wholesale price moves by segment
J.D. Power Valuation Services continued its latest edition of Guidelines by taking a closer look at wholesale price moves at the segment level.
Analysts discovered price losses at the mainstream segment level were worse than expected and strayed from typical February results. They noted large utility prices were the softest on the mainstream side as declines reached 2.6 percent or nearly 2 percentage points worse than the segment’s previous five-year February average.
Elsewhere, J.D. Power Valuation Services noticed compact and mid-size utility segments turned in slightly better performances as prices declined by respective figures of 1.6 percent and 1.7 percent. Still the figures were counter to what’s happened during the previous five years as analysts pointed out combined prices for these segments appreciated by an average of around 0.5 percent in February.
Also of note, J.D. Power Valuation Services spotted that subcompact, compact and midsize car prices declined by a combined average of 1.4 percent in February. Typically, these segments generate price increases by 1 percent to 1.5 percent in the February period due to benefits associated with federal tax refunds, according to Guidelines.
On to the premium side of the market, J.D. Power Valuation Services determined losses were on average greater than their mainstream counterparts and fell within a range of 2.2 percent to 4.7 percent.
Analysts said luxury large utility segment prices experienced the biggest decline on both the mainstream and luxury sides of the market in February. The report noted wholesale prices for the group declined by an average of 4.7 percent, which was the largest decline for the segment on record and roughly 3 percentage points worse than the previous five-year February average.
J.D. Power Valuation Services went on to mention luxury compact car and luxury midsize car prices were also more depressed than typical for the month. Over the past 5 years, analysts said the pair has experienced losses of roughly 1 percent during February.
Yes, you’re correct. There are more vehicles flowing down the lanes nowadays.
J.D. Power Valuation Services reported in the latest edition of Guidelines that auction volume in February for units up to five years in age increased by 7.3 percent year-over-year.
As a result, analysts determined year-to-date wholesale volume is now 9.1 percent above the same point in 2018.
“So far this year the largest volume increases have been observed among SUV segments. This is a trend that will continue as more of these models are sold on the new side of the market,” analysts said in the report.
For example, J.D. Power Valuation Services shared that compact utility volume is up by 39 percent, and midsize utility volume is up 18 percent so far this year as compared to 2018.
In terms of volume share, analysts determined truck share grew to 51.2 percent, while car share softened to 48.8 percent.
“Used supply for units up to five years in age is expected to peak in 2019, before leveling off in 2020 and 2021,” J.D. Power Valuation Services projected. “The anticipated increase will be fueled by increases in off-lease volume.
“Retail, rental and commercial volumes are also expected to increase in 2019, however, not nearly to the same degree as off-lease volume,” analysts added.
According to details shared with Auto Remarketing this week, five operations have received accolades for 2018 performance through the Ford Auction Service Award Program (ASAP).
The Ford ASAP is a competitive, performance-based program that monitors and rates Ford-sponsored auctions on their operational efficiency of Ford-owned vehicles throughout every step of the auction process. These steps include transportation management, condition reports, work order processing, reconditioning and repair services and the sale of the vehicle.
The list of 2018 winners includes:
2018 Repurchase, CSV National Winners by Group:
Mach 1: Manheim Pennsylvania
Cobra: Manheim Pittsburgh
GT: DAA Northwest
Boss: ADESA Buffalo
2018 RCT (Lease) National Winners by Group:
Mach 1: Manheim Pennsylvania
Cobra: Manheim Pittsburgh
GT: Manheim Mississippi
Boss: ADESA Buffalo
Officials from KAR Auction Services reacted to ADESA Buffalo being picked as a two-time 2018 award winner.
“ADESA Buffalo employees have worked hard to create a customer-focused auction environment and we are so glad that the Ford Auction Service Award Program has taken notice and rewarded their efforts,” ADESA chief commercial officer Paul Lips said.
“We continue to build strong, trusting remarketing partnerships with our customers and our relationship with Ford is no exception,” Lips continued. “In fact, Ford auction sales have been a constant at ADESA Buffalo since the location opened its doors in 1992 and we look forward to many more successful sales years ahead.”
ADESA Buffalo has been honored with various Ford ASAP awards in recent years including Open Sale winner in 2017 and Closed Sale winner in 2017, 2015 and 2014.
America’s Auto Auction president and chief executive officer Ben Lange announced the acquisition of Greater Boston’s Lynnway Auto Auction today.
“We are extremely pleased to welcome Lynnway Auto Auction, and its team led by Jim Lamb, to America’s Auto Auction. Jim and his staff are of the highest caliber with a proven track record in Boston and the New England market,” Lange said in a news release sent to Auto Remarketing.
Lynnway Auto Auction has been owned and operated by Jim Lamb and George Russo, who founded the facility in 1997. Both former auctioneers with more than 30 years of experience in vehicle remarketing, Lamb and Russo have built a thriving auction that draws customers from all points in the Northeast.
In 2011, the pair moved the auction to its current location, a new, high-tech eight-lane facility on 58 acres, 30 minutes northwest of Boston.
“In expanding the America’s Auto Auction brand, we seek out auctions that are successful and high-performing in their markets,” Lange said. “Lynnway Auto Auction is an ‘A-Rated’ operation with a tremendous influence in the Northeast, earning superior marks in facility management, transportation management, reconditioning service, mechanical and body repairs, on-site floor planning and first-rate customer service.
“This acquisition supports our footprint in the Northeast, one of the country’s major automotive markets, and puts Lynnway in an even stronger position to serve its dealer and institutional accounts,” Lange continued.
Commenting on the transaction, Lamb said, “Our relationship with America’s Auto Auction has been four years in the making.
“During that time, we have not only come to know and admire Ben Lange, but have become acquainted with his associates at the America’s auction locations and observed the workings of a tremendously successful company,” Lamb continued. “We are all excited about our future with America’s Auto Auction.
“This acquisition is a great cultural match between Lynnway and America’s, one that holds tremendous promise for the auction and its customers,” Lamb went on to say.
With objectives of maintaining a keen focus on both buyers and sellers in order to nourish healthy local markets and build strong foundations for institutional remarketers, America’s Auto Auction is the third-largest auto auction company in the United States. With the addition of Greater Boston’s Lynnway Auto Auction, America’s Auto Auction now includes 22 locations with facilities in:
—Alabama
—Georgia
—Illinois
—Florida
—Kentucky
—Louisiana
—Massachusetts
—Michigan
—Ohio
—Oklahoma
—Pennsylvania
—South Carolina
—Texas
—Virginia
For information, contact Cynthia Butler at America’s Auto Auction corporate office in Dallas at (214)736-7900 or [email protected]. Additional information on all of the America’s Auto Auction facilities can be found at www.americasautoauction.com.
