Chase Auto recognized its top U.S. auto auction partners on Thursday, spotlighting 10 auctions via Zoom for their performance in its annual Chase Cup for Auction Excellence program.
After reviewing 36 auctions for their respective performances in handling preparation, sales, invoice processing, transport requests, title processing and more, Chase awarded ADESA Kansas City the Chase Cup for Best National Auction Performance honors, while Manheim Orlando earned top honors as Best National Performance Service Delivery.
Also recognized were:
- Best National Jaguar Sales – Manheim Atlanta
- Best National Land Rover Sales – Manheim Dallas
- Best National Mazda Sales – Manheim Milwaukee
- Best National Subaru Sales – Manheim Nashville
- Best National Maserati Sales – Manheim Dallas
- Best Regional Performance, Midwest – Manheim Minneapolis
- Best Regional Performance, Western – ADESA Salt Lake
- Best Regional Performance, Central – ADESA Kansas City
- Best Regional Performance, Northeast – Manheim Fredericksburg
- Best Regional Performance, Southeast – Manheim Tampa
“Each year, the Chase Cup honors high-performing auto auctions across the country that display operational excellence, outstanding customer service and strong financial performance,” said Charles Do, head of vehicle remarketing for Chase Auto, in a news release. “These auctions are the best of the best.”
Although the National Auto Auction Association postponed its in-person convention this year, NAAA did still find a way to honor those making big waves in the industry, as well as install its leadership for the coming year. Some of these orders of business were conducted during a recent virtual all-member meeting broadcast from NAAA headquarters in Frederick, Md.
During the meeting, R. Charles Nichols — president of BSC America — was installed as NAAA president for the 2021-2022 term, during a virtual "passing of the gavel" ceremony from outgoing NAAA president Julie Picard. Nichols, who formerly served as NAAA vice president and president-elect, says he will focus on NAAA’s digital job board, and a continued focus on diversity and inclusion, safety, and compliance, during his term as NAAA president.
As Nichols steps up, Carolina Auto Auction's Eric Autenrieth fills the position of vice president of the NAAA, bringing over 24 years of experience in the auto auction industry. He is currently the owner of Indiana Auto Auction and the general manager of Carolina Auto Auction.
Another order of business was also recently handled, this time by the NAAA Executive Committee, in regards to a well-deserved industry honor.
After leading NAAA for 17 years, Frank Hackett has been inducted into the NAAA Hall of Fame. Hackett retired as NAAA CEO in July and now serves in a consultant role for the association.
Under Hackett's leadership, here a just a few of the items of business that were launched and/or established or addressed:
- Launched a safety program
- Established a self-sustaining scholastic foundation
- Published studies on key issues such as solving the technician shortage challenge and looking ahead into the auto auction industry’s future
Membership in the NAAA Hall of Fame, which was first launched in 1968, "recognizes individuals whose long-term service to the auto auction industry and NAAA has contributed improvements to remarketing, has worked with the trade organization to benefit its members, and has consistently followed the high standards of the association’s Code of Ethics," NAAA said..
Online auto auction company Copart has added a new member to its board of directors this month. Chosen for the position is Carl Sparks, a managing partner with Dallas-based venture capital firm Interlock Partners. His company, Copart shared, is focused on early-stage "transformative" technology companies.
Sparks also brings past experience serving as a public company director, including in the automotive space. He was on the boards of the auto industry's Avis Budget Group, where he also served as chair of the audit committee, as well as on the boards of the Dunkin' Brands Group and Vonage Holdings.
Prior to his current position at Interlock Partners, Sparks worked as senior adviser to Bain Capital. He has also worked at the following companies over the years: Academic Patnerships, Travelocity Global, Glit Groupe, Expedia.com and Boston Consulting Group.
In May, earlier this year, Copart made another pick for to board of directors, with the addition of Cherylyn Harley LeBon, who currently serves as a partner with the law firm of Dunlap, Bennett & Ludwig based in Washington, D.C. She is a member of the firm’s corporate and government contracts practice.
Hurricane Ida roared in from the Gulf of Mexico on Sunday and in the following days caused damage from torrential rain and wind from New Orleans to New York City.
Fortunately for the auctions within the storm’s path operated by ADESA and Manheim, no significant problems have been sustained at their operations.
Auto Remarketing received updates from Cox Automotive and KAR Global on Friday, relaying the positive details.
Cox Automotive shared details from Matt Trapp, who is Manheim’s regional vice president for the East, and Tim Janego, who is Manheim’s regional vice president for the Southeast. Most importantly, Trapp and Janego confirmed that the company accounted for all team members.
“In the wake of Hurricane Ida, Manheim’s top priority was contacting all team members in communities impacted by the storm’s destruction to account for their safety and security,” Trapp and Janego said in the update sent on Friday morning.
“And, while our Manheim New Orleans and Manheim Lafayette locations closed briefly due to the powerful storm, both are now back to normal operations,” they continued.
“To prepare for Hurricane Ida’s arrival in the Northeast, we sent team members home early Wednesday from our nine locations in New York, Pennsylvania and New Jersey. Early reports indicate minimal damage to our auction locations,” Trapp and Janego went on to say.
Trapp and Janego also mentioned that Manheim’s Atlanta-based corporate human resources team is leading the effort to provide resources and information to team members affected by Hurricane Ida. They indicated the efforts include coordinating access to the Cox Employee Relief Fund, which is available through Manheim’s parent company at Cox Enterprises.
That fund offers immediate financial assistance to team members for unexpected needs resulting from a disaster.
“Our thoughts and prayers are with our Cox Automotive and Manheim families, and their communities, as they begin the hard work of recovering from this devastating storm,” Trapp and Janego said.
Meanwhile, over at KAR Global, the company said in an update on Friday afternoon that all of its Gulf Coast operations were unharmed and continue to operate as planned.
However, the company added that ADESA New Jersey is closed to customers until Tuesday at 9 a.m.
“We will work hand-in-hand with our customers to assess any damage and prep for the next sale, which is scheduled for Thursday, September 9th,” a KAR Global spokesperson told Auto Remarketing.
Officials from the National Weather Service recorded wind gusts of 172mph in Port Fourchan, La., one of six locations where they said Ida generated wind speeds of at least 110mph in the state where the storm made landfall 16 years to the day after Hurricane Katrina.
The National Weather Service also said 13 locations in Alabama, Louisiana and Mississippi had preliminary rainfall estimates of at least 11 inches, with Slidell, La., leading the way at 15.73 inches.
The Gulf Coast was just the opening segment of Ida’s journey north toward eastern Canada. Officials spotted significant rainfall totals in locations such as Staten Island, N.Y. (8.92 inches), Ringoes, N.J. (9.91 inches), Coatesville, Pa. (9.43 inches) and Peckham Farms, R.I. (9.83 inches).
“My message to everyone affected is: We’re all in this together. The nation is here to help,” President Joe Biden said in remarks made on Thursday.
Akron Auto Auction has an award-winning auctioneer team — literally.
As highlighted in the latest ServNet newsletter, Laura Mantle-Grunden, an auctioneer from Columbus Ohio, took first place and was declared the 2021 champion during the International Auctioneers Championship (IAC). The competition took place in July during the 72nd National Auctioneers Association Conference held in Minneapolis.
Mantle-Grunden joined a list of current Akron Auto Auction staff members who have won the International Auctioneers Championship, including Peter Gehres (2015), Andy White (2013) and Joseph Mast (2011).
“I’m thankful to be a part of such an amazing team at Akron Auto Auction every Tuesday,” Mantle-Grunden said in the ServNet newsletter about being a part of Akron AA that has sales each Tuesday featuring 1,200 vehicles.
“It’s such a wonderful feeling to have auction customers, clients, sellers and staff members all celebrate with you,” she added.
Champions for cancer research
According to the same ServNet newsletter, the Stanley Autenrieth Auction Group has raised more than $500,000 during the last few years for cancer research.
The group is continuing its philanthropic efforts with live events in September at both its auction locations
Carolina Auto Auction will host a three-day charity event benefitting melanoma research at the Winship Cancer Institute of Emory University in Atlanta. Group officials said they are especially excited this year since an anonymous donor has agreed to match dollar for dollar what the auction can raise during the event.
The Carolina event begins on Sept. 13 with the Legacy Gala and VIP Charity Auction, with special guest speaker Joe Theismann and more than 75 live and silent auction items to help raise money.
The live event is hosted at the Bleckley Station in Anderson, S.C., which offers plenty of room for a few hundred people to enjoy a nice dinner event.
The following morning kicks off the 16th annual Tee Off Against Cancer Golf Tournament at Cobbs Glen Country Club in Anderson. The event is a four-man captain’s choice tournament and provides a great steak sandwich lunch for all in attendance.
Carolina will also have unique items available to win after the golf tournament for those who participated in the raffle for charity. There also are four prize holes this year in addition to two hole-in-one contests where players can attempt to win both $25,000 in cash and a new car.
In conjunction with the tournament, Carolina Auto Auction will hold an additional charity raffle that runs several weeks leading up to the Sept. 15 giveaway during the Charity Car Sale. Tickets are $20 for a book of 25 tickets to enter into the prize boxes of your choice, and they are on sale now.
In addition, the auction holds a weekly 50/50 cash drawing.
Meanwhile, Indiana Auto Auction kicks off its second annual charity event on Sept. 22, benefitting the Cancer Services of Northeast Indiana. The auction is also hosting Joe Theismann as its speaker at the Baker Street Train Station in Fort Wayne, Ind.
Indiana AA will hold a second day event including a charity car sale and 50/50 raffles as well as some great auction items.
Blood drives at Bel Air
Also highlighted in the ServNet newsletter was BSC America’s Bel Air Auto Auction continuing its focus on service to the community.
The auction hosted a blood drive for the American Red Cross on July 13. An earlier blood drive was held on March 3 in conjunction with the auction’s 74th anniversary sale.
Once again, Bel Air AA converted its cafeteria to a satellite blood bank, welcoming the Red Cross who brought the equipment and the personnel to handle the blood drive in a safe and socially-distanced environment. Auction employees were joined by auction customers and members of the community for the three-hour blood drive.
The auction said 20 units of blood were collected, which the Red Cross estimates will help up to 60 people.
Several people participating in the blood drive received pins as Baby Brigade Donors, meaning that their blood would be used specifically to help babies.
“At Bel Air Auto Auction, we feel that community service is an important element of our company culture,” said Michelle Nichols-Neff, executive vice president of BSC America.
“Our success over these many years is due in large part to the loyalty of the community we serve, and we value opportunities like these to give back. We are grateful to all who participated,” Nichols-Neff continued.
Editor's Note: This is a special online preview, available only to CMG Premium subscribers, of Auto Remarketing's upcoming special print edition for the NAAA Convention. The excerpt below is Part II of the feature.
Beyond the buying and selling of vehicles, the auto auction sale brings folks together.
Not unlike many of the industry events we have missed over the past year-and-a-half. That includes the NAAA Convention, which returns live and in-person this fall.
And one of Tricia Heon’s first duties as the new chief executive officer of the National Auto Auction Association is to host the that group's convention, which is set for Sept. 28-30 in Chicago and is themed “The Reconnection Event.”
It will be the association’s first formal event in two years.
“I’m really just looking forward to bringing everyone back together. We’ve missed that so much. We’ve missed the person-to-person (interaction) — that in-person opportunity to collaborate, share best practices,” Heon said in an interview earlier this month with Auto Remarketing. “We’re leaving lots of time for those social events, because we know that’s what people have missed the most.”
That will include the second live concert event from NAAA, which will feature a performance from Kool & The Gang. Other highlights include a keynote address from NFL legend Emmitt Smith, the annual Black Book Reception, Presidential Gala, President’s Party, an industry reception honoring Sandy Schwartz and Janet Barnard, plus more.
The event will also include a bevy of committee meeting, general sessions, exhibit hall and more.
Time of transition in association leadership
Heon enters the CEO role at NAAA at a time when three of the major associations with close ties to the used-car business, including NAAA, have changed leadership and did so within a year.
In late October 2020, the National Independent Automobile Dealers Association hired Robert Voltmann to replace Steve Jordan as its CEO.
The National Automobile Dealers Association, meanwhile, began 2021 with a new president and CEO.
The association announced in October 2020 that succeeding Peter Welch as its top leader on Jan. 1, 2021 would be Mike Stanton, who had been the NADA’s chief operating officer since 2018.
“I’ve known Mike Stanton for years and worked with him really well, and have enjoyed some conversations with Bob Voltmann as well,” Heon said. “The relationship (between the associations) has always been strong, but I do sense a real sense, a real spirit of collaboration that is stronger than ever.
“We are all one ecosystem and we recognize that. And we recognize that our presence in that ecosystem is stronger together. One thing I can speak to that i have a lot of experience with is the advocacy,” she said. “The team, when we work together, it’s really powerful. So we all appreciate the power of that collaboration.”
Advocacy, analysis & association
Heon certainly has a considerable amount of experience on the advocacy front as well as in governmental matters. She led the creation of NAAA’s Political Action Committee and its annual Day On The Hill in Washington, D.C.
Heon has also headed up NAAA’s efforts to monitor federal and state regulations — this in addition to her time helping to such initiatives as a study to address technician shortages and a report on the industry’s future, plus her involvement with planning NAAA meetings, programs and conventions.
Prior to her time with NAAA, Heon’s experience includes time as a budget analyst in Fairfax County, Va. — which at the time had the largest county government budget in the nation, Heon said — followed by a role as a consultant regarding the impact of the federal budget to state governments and non-profits.
With a background in public administration, Heon always had her eye on the non-profit segment, especially association work, which is what drew her initially to NAAA.
“What interested me about NAAA was that i wanted to come work for an association. So that wasn’t truly the auto industry that attracted me, it was the legislative work for an association,” Heon said.
But as it turns out, she said, “People say it gets in your blood. Well, it’s gotten in my blood. It’s an honor to serve this industry. I’ve grown to just truly appreciate it.
“The members are awe-inspiring, what they do and the resilience of the industry,” she said.
And while the auction industry has been front-and-center in her work the past decade, Heon’s time in a budget analysis years ago has come in handy during auto industry advocacy efforts.
“The wholesale auction industry is, to you and I, it’s something we know very well. But we find when we go on the Hill, it’s a constant education,” Heon said. “And getting the right people to understand and appreciate the industry has been something i have much enjoyed. I’ve enjoyed figuring out who the right people are that we need to educate. And then that analytical sense comes in really handy in that education.”
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Editor's Note: This is a special online preview, available only to CMG Premium subscribers, of Auto Remarketing's upcoming special print edition for the NAAA Convention. The excerpt below is Part I of the feature. Stay tuned for Part II.
Tricia Heon is no stranger to the auto auction industry, nor is the industry a stranger to her.
But while the National Auto Auction Association’s central mission doesn’t change as Heon embarks on her new role as its chief executive officer, she will look at those objectives “through a fresh lens.”
Heon was named CEO of NAAA in July, replacing Frank Hackett, who retired from that role after 17 years in the position.
Heon, previously NAAA’s chief operating officer, is the first woman CEO in NAAA’s 73-year history.
She has been with NAAA since 2011, when she joined as legislative director and operations manager, and became COO in 2019.
As Heon began her tenure as CEO this summer, one of the short-term to-do items was working with the board to build a strategic plan for NAAA.
“We’re in a 21st century, post-pandemic world. We’re definitely looking to capitalize on the digital transformation that the industry went through during the pandemic,” Heon said in an August interview with Auto Remarketing.
“I’m looking at expanding the education and training opportunities for our members, expanding the advocacy program. We need to be the leading, strong voice for the industry,” Heon said. “(We’re) also looking at developing the next generation of operators.
“We always will respect our past. But also embrace that fresh perspective in the industry. It’s very important for the industry’s growth. But mostly, my mission is going to be ‘how can I serve the membership better?’” she said “And always keeping that in mind, daily. And that’s what I do here with our staff — making sure that we’re remembering that, daily, that’s our mission. It’s just an honor to advocate for this industry.”
Heon is planning for in-person auction visits this fall, and has already met with NAAA president-elect Charles Nichols and vice president Garrison Hudkins for a two-day planning session and to get feedback.
“I’m focusing on staff needs, doing a lot of member outreach. The job’s not just planning and analysis; it’s really the people,” Heon said. “The people that make up our membership, they’re just wonderful. It’s been great to connect with them. And I’m just evaluating how I can work more efficiently and better to serve the industry.”
NAAA and current president Julie Picard have launched “virtual auction visits” as a means to connect and communicate with member auctions during the pandemic, and Heon said the plan is to continue those.
“It’s a conversation. And every conversation tells us the same thing: send me cars, send me people. So that is without a doubt, the biggest need that the auctions have right now,” Heon said.
“Obviously, you hear it every day about … the vehicle shortage, the supply chain breakdown. It’s the biggest worry that people have right now. And also, just the people. We need people. We need good talent that wants to come work in the industry.”
Regarding the talent piece, NAAA has experimented with a “Coffee Chat Series” that aims to develop current mid-level management leaders in the auction industry.
The goal is to recognize that existing talent with the auction industry and have NAAA act as a resource for them.
So, it’s not so much recruitment as it is nurturing existing leaders with the auction business.
“I like that to make that introduction. So, I’m really trying to reach out to the mid-level management that we have in the industry,” Heon said. “I wouldn’t say we’re looking for future leaders outside of the industry from the association level at this time, but trying to foster that talent we have and help develop it.”
Role of brick-and-mortar auction
The wholesale vehicle industry has been moving further digitally for years, but the pandemic certainly accelerated that shift.
In addition to relatively new only-only entrants (and more established players with decades in digital auctions), the traditional auto auctions are blending both physical, in-person offerings with digital technologies and online sales.
In short, they’ve adapted.
So where does Heon see brick-and-mortar auctions five, 10 years from now?
“The brick-and-mortar auctions, they’re always going to be around. It doesn’t mean they’ll operate as they did in the 20th century. They have to keep up with the modern world, but auctions, they’ve displayed how adaptable they are,” Heon said.
“Since NAAA was founded, we’ve represented brick-and-mortar auctions … Brick and mortar operates with the best of traditional, while integrating the best of technology to be the best business they can and serve the customer better than ever,” she said. “And that’s really been proven through the pandemic … we’re really pleased with how the auctions have adapted, really to serve the customer, I believe, better than ever.
“The brick-and-mortar auction is a place to bring everyone together. All in one place, much like what we miss so much from our conventions. They provide service and it keeps the customer up, also, with the change,” Heon said. “It’s a big benefit to the customer to be able to come to our brick-and-mortar place of business.”
Stay tuned for Part II of this feature.
Much like the retail side of the used-car market, digitization and new business models in the wholesale car business have increased the number of ways buyers can acquire inventory.
Leaders with several of these “Emerging Marketplaces” in wholesale will be on hand for a panel discussion at the IARA Summer Roundtable in San Antonio.
Moderated by Cherokee Media Group president Bill Zadeits, the panel includes:
— Becca Pollak of CarLotz
— John Brasher of EBlock
— Rob Vannuccini of Copart
— Josh Parsons of BacklotCars
— George Chamoun of ACV Auctions
The Emerging Marketplaces panel is set to begin at 10:35 a.m. local time on Aug. 26 and is part of a wide-ranging lineup for IARA’s annual summer event, set for Aug. 25-26.
The event also includes panels on Driving IARA Forward, E-Vehicles, a “Passing the Baton” with the leaders of Cox Automotive and KAR Global and much more.
For more information, visit iara.biz.
Dealers Auto Auction Group’s first-ever facility in the Carolinas is set to host its inaugural sale next week.
Dealers Auto Auction Columbia, the group’s eighth overall auction, will feature more than 300 vehicles in its debut sale Monday, including consignment from dealers and commercial accounts like ARI, Element Fleet and U-Haul.
The auction, located in South Carolina’s capital, is led by general manager Matt Laughridge, whose background in the auction industry goes back to 1999 and includes time with both Manheim, ADESA and DAAG.
“We are very excited for our first sale to happen,” Laughridge said in a news release. “It has been a very busy few months getting everything in place so we can offer the best sale experience for our customers.”
DAAG president and chief executive officer David Andrews said in the release, “We are very excited about our expansion into Columbia, South Carolina. It is a testament to the companies’ goals to grow the DAAG brand.
“We are very fortunate to have Matt leading the new auction, especially considering his experience, strong leadership abilities and extensive dealer relations in the Columbia area,” he said.
How many of you uttered (or heard) this phrase back when cars had more analog controls?
“The volume knob must be broken.”
That was also the cleverly worded headline of a summary slide in the second AutoIMS Industry View, a quarterly recap of data metrics gathered through the AutoIMS Sales Scorecard.
And it certainly speaks to what’s happening in today’s supply-constrained environment, as the “volume” to which AutoIMS is referring is not the tunes coming out of the car stereo speakers.
“Now with two quarters of data under our belts, we are gaining some new clarity as an industry about what appears will be low volume for the foreseeable future,” AutoIMS said in the report summary.
In fact, one of the first slides in the report — illustrating the percent change in auction sales volume from the year-ago period — shows that after a major spike in early spring, recent months have shown a slowdown from a year ago, with May and June each down near or above 30% year-over-year.
The report delves further into the numbers beyond volumes, including conversion rates, prices, condition report grades and more. Here are some other stat highlights from the report:
Conversion rates in the second quarter were up more than 13 percentage points year-over-year, climbing from 58.21% to 71.65%, according to AutoIMS.
(This is calculated as the percent of vehicles sold on the same day they were offered for sale, the company said).
Average sale price came in at $16,096 in Q2, up from $13,089.76 a year ago, according to the data.
Next up, the average vehicle grade (based on the final condition report grade) when a vehicle was sold came in at 2.88 in the second quarter, down from 3.28 a year ago, the company said.
Average damage estimate per vehicle (also based on the final condition report when the vehicle was sold) increased from $1,661.10 to $1,806.93.
Vehicles sold with an average mileage of 83,546, up from 71,982 a year ago, according to the report.
A car going from assigned to secured took 3.7 days in Q2, down from 9.3 days a year ago. The time it took a car to do from secured to sold (or auction arrival to sale) was 27.2 days last quarter, compared to 43.9 days a year ago.
