As the company released its second quarter financial statement, KAR Auction Services also announced on Thursday the creation of a new operating segment — KAR Remarketing Services.
KAR Remarketing Services is designed to align the company’s AutoVIN, Dent Demon, High Tech Locksmiths and PAR North America businesses. Picked to serve as president of this new operating division is David Vignes.
“KAR’s goal is to provide a simplified, seamless experience across its end-to-end remarketing platform,” Vignes said. “The alignment of these businesses allows us to deliver the full range of inspection, recovery, reconditioning and repair services both in the lanes and on the road.
“We look forward to building on our successful foundation and expanding our integrated offerings to serve our diverse whole car, salvage and buyer and seller customers,” he continued.
Vignes previously served as KAR’s executive vice president of enterprise optimization, and has been promoted to the role of president, KAR Remarketing Services. In addition to his new responsibilities, Vignes will continue to oversee KAR’s enterprise safety efforts. Vignes also led the development of KAR’s “Safe T. Sam” program, which is available to all National Auto Auction Association (NAAA) members.
As part of this organizational alignment, Lisa Scott has been named president of PAR North America reporting to Vignes. PAR North America is a U.S. provider of vehicle transition services with coast-to-coast solutions for recovery management, skip-tracing, remarketing and title services.
“It’s an exciting time to be part of KAR, and I am thrilled to take the lead at PAR North America,” Scott said. “I worked very closely with our customers at ADESA Canada, and I’ve seen and heard their needs firsthand. I look forward to collaborating with my colleagues to develop the next generation of integrated remarketing solutions.”
Prior to this role, Scott held a variety of positions at ADESA Canada, including senior vice president of sales, marketing and operations, general manager, and, most recently, chief client officer. She has also served on several industry boards, including chair of the Canadian committee of the National Auto Auction Association (NAAA) and co-chair of the Canadian chapter of the International Automotive Remarketers Alliance (IARA).
“Lisa was a visionary leader for ADESA Canada with a strong track record of creating deep customer relationships. Her 25 years of experience, broad understanding of the marketplace, and her passion for our industry will continue to benefit our company and our customers,” Vignes said.
Scott takes the place at the top of PAR North America in place of Jerry Kroshus, who departed the company after nine years to become president and chief executive officer of Auto Approve, a refinance company that specializes in helping consumers find the best possible vehicle interest rates through its national network of credit unions, banks and finance companies.
Top-line quarterly results
In other company news this week, KAR also reported its second quarter financial results for the period that ended June 30.
The company’s total revenue jumped 9 percent year-over-year from $788.5 million to $858.0 million.
However, KAR reported a 7-percent softening in net income, landing at $57.2 million, or $0.41 per diluted share, as compared with net income of $61.8 million, or $0.44 per diluted share, in the second quarter of 2016. Management explained Q2 net income was negatively impacted by $17.3 million, net of tax ($0.13 per diluted share, net of tax) resulting from the company's refinancing activities.
Looking at figures through the first six months of the year, KAR highlighted an 11-percent gain in revenue to $1.7246 billion as net income rose 3 percent to $126.4 million, or $0.91 per diluted share.
“KAR continues to execute well on the fundamentals of our business,” KAR chairman and chief executive officer Jim Hallett said in a statement. “Our second quarter results reflect the level of performance we expect, our ability to generate cash, and the strength of our diversified business model.”
KAR also announced a cash dividend of $0.32 per share on the company’s common stock. The dividend is payable on Oct. 3 to stockholders of record as of the close of business on Sept. 20.
J.D. Power recently announced it has filled its newly created position of chief digital officer.
Chosen for the position is Bernardo Rodriguez. Rodriguez is a business, technology and product design leader who most recently served as managing director of strategy at Huge, a global full-service digital agency, according to the consumer insights provider.
In his new role, Rodriguez will be responsible for J.D. Power’s new product development, branding, marketing and mergers and acquisitions.
Rodriguez will oversee the design and content of J.D. Power’s digital interface with clients and consumers and report directly to J.D. Power chief executive officer and president Finbarr O'Neill.
"Bernardo is an accomplished business leader with proven experience to accelerate transformation of businesses through the development of data and analytics, strategic products and capabilities that drive growth opportunities," O'Neill said in a new release announcing Rodriguez’s hire. "Bernardo has the ideal background to integrate various data sources into a holistic view of the consumer.”
At Huge, Rodriguez collaborated with Fortune 100 companies on the design and execution of product and brand strategies.
He led projects such as developing a digital transformation and experience strategy for a $12 billion Canadian telecom company, a product strategy for a $30 billion global financial institution, and a small business segment digital strategy for a $120 billion U.S. telecom company, according to J.D. Power.
"I have always admired the spirit of innovation that J.D. Power brings to the industry through its continued technological advancements and unmatched data and analytics capabilities,” Rodriguez said. "I look forward to bringing my digital expertise and vision to my new role and contributing to the future successes of J.D. Power."
Additionally, Rodriguez has also served as the chief digital officer at Kaplan Test Prep and managing director at Accenture, where he headed the firm’s North American Digital Strategy Practice for telecommunications, media and technology.
Bringing nearly 30 years of experience with him, Jerry Kroshus has been named president and chief executive officer of Auto Approve, a refinance company that specializes in helping consumers find the best possible vehicle interest rates through its national network of credit unions, banks and finance companies.
Kroshus began his career at GMAC in 1989 and has held senior roles at HSBC Auto Finance and Citigroup. He also spent the past nine years as president and CEO of PAR North America.
“Auto Approve is rapidly expanding and having Jerry lead the company as we continue to grow is a perfect scenario for us,” Auto Approve chairman Chad Latvaaho said. “Jerry has been a huge success wherever he has worked. He is highly respected and well-liked by everyone in the automotive industry and with his established relationships we look for Auto Approve to be taken to the next level under his leadership.”
“One of Jerry’s greatest strengths is attracting top talent and building strong organizations and he is already on his way to doing this for Auto Approve,” Latvaaho continued.
A frequent expert speaker during Used Car Week, Kroshus added, “I am very excited for the opportunity to lead Auto Approve and to work with Chad and his team in Maple Grove.
“We have several programs that will be unique to the marketplace and I cannot wait to get these initiatives launched,” Kroshus went on to say.
LeasePlan USA has brought Michael Croft on to its to business development team, where he will work with companies in the Southwestern region.
Croft most recently served as vice president of sales for Element Fleet.
He joins LeasePlan while it is expanding its business development team in preparation for smart growth and future endeavors, according to the company.
“I knew right away Michael was a good fit for us,” said LeasePlan USA chief commercial officer Ricardo Fonzaghi in a news release. “Not only does he bring years of fleet expertise and a consultative mindset, he also possesses the passion and spark that clients need to achieve success.”
Croft's previous roles include director of strategic sales for Comdata and director of global sales at Vodafone.
“It is such an exhilarating time to join the LeasePlan team,” said Croft.
“The momentum and excitement at the company is unbelievable. I am looking forward to this next chapter in my professional career and the opportunity to help clients elevate their fleet to the next level,” he said.
Croft is an active member of NAFA Fleet Management Association and AFLA. His duties include being responsible for new business development in both California and Arizona.
To strengthen and grow its digital offerings, Manheim announced on Monday that Nick Peluso will lead the company’s digital strategy as president of Manheim Digital Marketplace, while continuing as president of RMS Automotive.
In his dual role, the company indicated Peluso is responsible for Manheim’s digital channels, including OVE, Manheim.com and Simulcast, in addition to RMS Automotive’s global business.
“By aligning our digital resources under one proven leader, we can better ensure our clients benefit from the advantages delivered by our market-leading digital platforms,” said Grace Huang, senior vice president of inventory services for Manheim. “Nick’s deep knowledge of the ever-evolving digital marketplace makes him the ideal executive to direct our next-generation digital future.”
Reporting to Huang, Manheim highlighted Peluso will leverage his more than 30 years of automotive experience and tap the synergies between the two companies’ diverse portfolio of leading digital solutions to drive transaction velocity and efficiency. His efforts will focus on setting the industry standard by making the client experience faster, simpler and more convenient.
“I’m eager to help shape the next phase of our digital remarketing strategy, especially at a time when dealers and commercial clients increasingly rely on digital channels to conduct business anytime, anywhere,” Peluso said. “My goal is to broaden our services and deliver a suite of digital tools that advance our clients’ speed to market.”
Peluso joined Cox Automotive in 2000 as president of remarketing solutions for Manheim and soon became senior vice president of customer management for Manheim before being named president of RMS Automotive in 2014.
Prior to 2000, Peluso spent 12 years in leadership positions with ADT Automotive, including vice president of sales and marketing.
The former top boss at Chrysler now has a new leadership position with a company that designs and manufactures smart power storage technology for transportation, alternative energy, medical, industrial and grid connected markets.
On Monday, Ioxus named Robert Nardelli as the company's chairman of its board of directors. Nardelli is an internationally recognized business leader with extensive experience, including the two-year span as chairman and chief executive officer of Chrysler
Nardelli also has been with Home Depot and General Electric, and has been on the boards of companies such as Coca-Cola and Pep Boys. He is currently serving on the BWXT Board and is the CEO and founder of XLR-8, an investment and advisory company.
At General Electric, Nardelli held a variety of assignments, including president and chief executive officer of GE Power Systems and GE Transportation Systems, CEO of Canadian Appliance Manufacturing Co. and various executive positions. After his career at GE, Nardelli became chairman, president and chief executive officer of Home Depot.
Following his tenure at Home Depot, Nardelli was tapped in 2007 to lead Chrysler during a tumultuous time for the auto industry.
“We are very pleased to have Bob join our board, with his knowledge and outstanding C-level relationships at blue chip customers,” Ioxus president and CEO Mark McGough said.
“Bob brings more than four decades of high level executive experience in a career filled with successes at some of the largest companies in the world, and this makes him an exceptional fit for our vision going forward,” McGough continued. “Bob is known internationally as an expert in key strategic industries, which we believe will drive enormous growth for Ioxus."
According to Nardelli, “Ioxus has been on my radar for some time. They have the strongest technology in the ultracapacitor space, with smart electronics coupled with higher power densities, higher temperature capability and more innovative system designs. The transportation industry has taken seriously the challenge for improved efficiency, lower environmental impact and growing customer demands for increased electrical/electronic features.
“Ioxus’ proprietary technology, such as the uSTART and X-Series, is meeting these challenges, particularly in the commercial vehicle and grid connected sectors,” Nardelli went on to say. “The potential for rapid growth, backed by Elliott Management, one of the largest private equity firms in the world, and an extraordinarily talented and experienced management team, made it an easy decision to join with this board.”
Donlen recently announced that the company has brought on a new vice president of client relations to lead its team of national account executives.
Chosen for the position is Roger Setzke, who has more than 12 years of previous experience at Donlen and over 25 years of extensive sales leadership experience.
“Donlen continues to invest in high-performing fleet professionals,” Donlen senior vice president of sales and client relations Rachel Hands said in a news release. “Roger returns to Donlen with a wealth of experience and knowledge that will allow us to keep servicing our valued clients with a high degree of attentive service,” she said.
Setzke’s past roles include vice president of customer service at Union Leasing, Midwest sales manager for both BMW and Pep Boys and account executive at PHH, according to Donlen.
“I’m so excited to return to Donlen” Setzke said. “I feel like this is the opportunity of a lifetime and I look forward to again being a part of a technology focused company committed to providing industry leading fleet solutions for its customers.”
Additionally, Setzke is a member of the National Automotive Fleet Association and the Automotive Fleet Leasing Association.
“We look forward to the expertise, and leadership that Roger will provide to our National Account Executives,” added Hands.
On Tuesday, KASP Auto Auction announced the appointment of Michele Pierog as its vice president of national sales. An industry veteran with over 15 years of experience, KASP highlighted that Pierog brings a wealth of experience in all facets of the auction business.
Pierog started her career in 2002 with Auto Auction of New England, where she was first hired to run dealer registration. After experiencing great success and fostering leadership potential in that role, she was promoted to the sales and marketing department where she spent more than a decade in various roles ranging from sales support to director of sales and marketing.
During the latter part of her career, Pierog has served as director of national sales working with both dealer consignment and commercial accounts. She is goal-oriented with a drive to succeed and create value. She became a Certified Automotive Remarketer in 2015 and has been active in several committees including the certification committee with the International Alliance of Automotive Remarketers (IARA).
KASP is the largest independent auto auction in Kentucky and is part of the Auction Management Solutions (AMS) group of independent auctions.
“Pierog brings a vast knowledge of industry operations, innovative solutions, a broad vision toward strategic planning and creative marketing initiatives,” said Brian Williams, general manager of KASP.
“Michele’s commitment to the customer experience is a perfect fit for KASP and we are excited to have her join the team,” Williams continued. “We are celebrating our 35th year in business, and have spent a lot of time building a great base of dealer consignment business over the years, as well as some fleet /lease and repossession business including the AVIS RAC account and U-Haul, and feel that Michele can really help us expand our footprint with national consignors. We feel that Michele can be a great help to achieve our goals.”
KASP was started back in 1982, and is celebrating its 35th anniversary this year. KASP offers a live weekly sale every Wednesday morning across four auction lanes on more than 40 acres of land. The operation currently offers 350 to 400 units weekly.
KASP also is a full-service auction with full reconditioning, light mechanical services and in-house transportation.
And now the operation has Pierog as part of its team.
“We are very excited to be working with Michele. Jim and his sons have built a very strong auction in the Southeast, and consignors are looking for strong independent auctions to partner with,” Auction Management Solutions president Tom Stewart said. “One of our goals here at AMS is to focus on providing our customers with the best service we can, while working through a proven sales strategy to help them grow their business.
“Michele will not only be working directly with me, but will also be working closely with Jamye Carpenter and Shelly Frank from our team, continuing to build relationship within the industry,” Stewart added.
For more details, go to www.kaspautoauction.com.
On Friday, the McConkey Auction Group announced that it has formed an executive team to oversee the strategy, operations, national sales, finance and marketing of its auctions in the Spokane, Wash., Kansas City, Mo., and Seattle markets.
The new seven-member team includes:
—David Pendergraft, DAA Northwest general manager
—Doug Doll, KCI Kansas City general manager
—Dave Blake, DAA Seattle general manager
—Greg Mahugh, senior vice president of operations
—Jennifer Leocardi, vice president of national sales
—Jerome Rauen, vice president of finance
—Mitzi VanVoorhis, vice president of marketing
The executive team will be charged with instituting best practices, nurturing and growing the group’s unique culture, vision casting, goal setting and mentoring the organization’s next generation of leaders.
“While we are not an auction chain, we are a single auction family with a unified team and consistent core values,” president Bob McConkey said. “Our auctions share many national account customers, and we know the remarketing community needs effective, consistent communication.
“We are being very intentional about providing that as part of our value proposition, and it enables us to compete in the marketplace at the highest levels,” he continued.
“Each of our locations bring specific strengths that are becoming best practices across the board. Simply put, we are learning from each other and are putting what we learn into practice,” McConkey went on to say.
All three locations of McConkey Auction Group are ServNet auctions, powered by Auction Edge.
Dealership buy/sell advisory firm Kerrigan Advisors this week hired a new vice president who has been involved in accounting consulting to more than 150 dealerships across the country.
Kerrigan Advisors announced that Mercedes Hendricks has joined the firm as vice president, bringing extensive certified public accountant expertise and a deep understanding of the dealership industry to the company.
Hendricks will work directly with Kerrigan Advisors’ clients as they prepare their dealerships for sale, adjusting their financials to better reflect their true earnings and identifying opportunities for business improvement. In addition, she will spearhead Kerrigan Advisors’ new consulting services, which launched this summer.
“We are delighted to have Mercedes join the Kerrigan Advisors team,” said Ryan Kerrigan, managing director of Kerrigan Advisors. “We have worked with Mercedes for years and have always considered her among the very best in the industry. Her deep knowledge, and decades of experience, nicely enhance our firm’s capabilities.”
The firm highlighted those capabilities will be put to work with a new suite of consulting services for Kerrigan Advisors’ expanding roster of clients, including open point applications, transactional due diligence, litigation support and pre/post-closing accounting services.
“In addition to our sell-side work, we are often called upon by our clients to do various strategic consulting projects and to be a thought partner for key business decisions,” said Erin Kerrigan, founder and managing director of Kerrigan Advisors. “The addition of Mercedes to our team will further expand the scope of these activities and enhance our ability to offer the automotive industry the highest level of service through our new Kerrigan Advisors Consulting Services division.”
Prior to Kerrigan Advisors, Hendricks provided public accounting expertise in the areas of assurance and consulting. She also spent nine years with Crowe Horwath in their dealership services group. There she managed large projects ranging from traditional audit and review engagements to non-traditional consulting engagements, such as due diligence services in mergers and acquisitions, consolidations, reviews of internal controls and tests of compliance.
“She was a mentor and supervisor for teams and individuals from across the nation, and is considered a key thought leader in the automotive accounting services space,” Kerrigan Advisors said about Hendricks.
Founded in 2015, Kerrigan Advisors has represented transactions totaling more than $2.5 billion in automotive, private equity and investment banking, including the sale of 51 dealerships.
