NextGear Capital and Ready Logistics have partnered to develop a transportation financing solution designed to help independent dealers free up cash flow and simplify their business operations, the two Cox Automotive brands recently announced.
The new transportation financing solution allows clients of both brands to buy, floor and transport vehicles all in one transaction using a deferred payment option that puts transportation costs on hold until the vehicle is sold.
“The power of Cox Automotive is that we can work across our brands to develop solutions that help dealers streamline and grow their business,” NextGear Capital senior vice president of operations Randy Dohse said in a news release announcing the partnership. “Our goal is to make clients more profitable by increasing the speed and ease of buying and selling vehicles, and bringing transportation financing to independent dealers is a prime example of how we’re doing just that.”
There are no additional fees associated with this new offering. After purchasing their financed vehicle, dealers only pay NextGear Capital for transportation purchase and any interest on the cost of the transportation financing, according to the company.
“Not only does this process make our accounting easier, it saves me a considerable amount of working capital and creates the possibility to reinvest those dollars elsewhere in the business,” said Asif Aziz, owner of Reliance Motors.
Additionally, following a transaction, dealers can now see transport costs for a vehicle upfront and take advantage of a quick in-lane or online checkout.
“Ready Logistics has always made it easier for dealers to move a vehicle, and now we’ve further improved the process by cutting out a step,” added Patrick Brennan, senior vice president of logistics at Cox Automotive. “The end result is a simplified transaction that delivers two things clients value: more time back and better cash flow.”
It’s another big acquisition in the KAR Auction Services family, this time in the vehicle shipping platform segment of its business.
And one that gives it a presence in consumer-ordered car transport.
KAR subsidiary CarsArrive Network has purchased the vehicle transportation business of Dependable Auto Shippers, the parent company said in a news release Wednesday.
Through the purchase of DAS, CarsArrive — an automated used-vehicle hauling solution that delivers more than 2 million cars annually — broadens its reach into the consumer market.
“CarsArrive has developed a leading portfolio of products and services that help dealers, wholesalers, fleet managers and other commercial customers ship their vehicles safely and efficiently,” said CarsArrive and Recovery Database Network chief executive Michael Briggs in a news release.
“We are excited to bring our strong history, expertise and commitment to quality and service to meet the vehicle shipping needs of consumers,” he said.
So what’s at play with this deal?
The company points to rising consumer demand for transport and logistics, driven by online car purchases, especially for cars sold by dealers to consumers. There is also transport/logistics demand to help consumers with relocation and similar personal needs.
CarsArrive had already been providing vehicle delivery to private homes on behalf of dealers, but now consumers will be able to order that directly thanks to the DAS purchase.
“If there’s a vehicle to be moved in any channel for any customer, CarsArrive wants to be there to move it,” Briggs said. “Consumer-centricity is the next phase in our evolution, and we’ll bring the strength and confidence of the entire KAR platform to help us deliver value, convenience and exceptional service.”
Since introducing its services to 17 cities in the past year-and-a-half, Maven has expanded its operations in New York City in order to offer residents Maven City, its fully connected car-sharing solution, the General Motors brand announced on Monday.
"New York City has been part of the fabric of Maven since we launched the brand here in 2015," General Motors Urban Mobility and Maven vice president Julia Steyn said in a news release. "The addition of Maven City car-sharing is an opportunity to showcase what we have learned. We crafted this experience with residents of the city in mind and see this as becoming part of the lifestyle of New Yorkers."
Maven City features technology fitted vehicles that are available for on-demand rental.
All vehicles include 4G LTE Wi-Fi, Apple CarPlay and Android Auto, according to Maven. Drivers can also access Maven 24/7 advisor support via OnStar to contact roadside assistance or emergency help.
Maven said the expansion will specifically make more than 80 car-sharing vehicles available across Manhattan for hourly or daily reservations via Maven City.
“Maven will continue to expand into the boroughs and throughout the city to provide cars around the corner from where New Yorkers live, work and play,” the company said.
The group of U.S. cities Maven currently operates in includes: Ann Arbor, Mich., Atlanta, Baltimore, Boston, Chicago, Denver, Detroit, Los Angeles, New York, Orlando, San Francisco and Washington, D.C.
Union Pacific has earned the 2016 Toyota Logistics Excellence Award in customer service for the ninth consecutive year, along with the automaker's Kaizen Excellence Award in recognition of excellence in continuous improvement, the company announced on Monday.
"We’re honored to receive the inaugural Kaizen award, demonstrating our dedication to continuous improvement, efficiency and shipment quality," Union Pacific's vice president and automotive general manager Jennifer Hamann said in a news release. "It is also a privilege to receive Toyota's Logistics Excellence Award in Customer Service year after year, as it reflects our unwavering commitment to provide an excellent customer experience."
This is the first year Toyota has honored a railroad with its Kaizen award, according to Union Pacific.
The company said it has followed Toyota’s problem-solving process to secure damage-free loading at the Benicia, Calif., auto ramp.
Union Pacific’s rail network connects 23 states in the western two-thirds of the country.
JMN Transportation recently announced that as a result of increased growth, the company created a transportation manager position that has been filled by Alex Vedder, who transitioned from his previous role as regional manager of JMN’s Georgia locations.
In his new role as transportation manager, Vedder will be tasked with overseeing the operational and financial elements of the JMN’s fleet division and directly connecting with the company’s customers to build and maintain positive working relations, according to JMN.
“Alex has demonstrated his ability to get the job done year in and year out,” JMN owner and chief executive officer Jon Nuckolls said. “His loyalty and dedication, coupled with his extensive knowledge should acclimate Alex into his new role quickly.”
Vedder has more than 25 years of experience within the transportation industry and has spent 9 with JMN. Throughout his career, he has held positions such as regional inventory manager and operations manager with various auto hauler companies.
Additionally, JMN has had a recent uptick in recruiting and adopted several other new positions. The company said the recent opening of multiple Drive Away locations has generated more than 150 new employees since this past August.
Full-service logistics provider Ready Logistics moved more than 194,000 vehicles in January, which was the company's best month ever..
It was a 55 percent increase compared to last January’s volume.
“This surge signals a desire in the marketplace for turnkey, end-to-end logistics and transportation solutions,” Ready Logistics said in a news release.
The Cox Automotive brand can assist clients move inventory quickly because it works to reduce the time needed to transport vehicles to dealers’ lots.
“Our uptick in business reflects clients’ desire for streamlined, reliable pick-up and delivery services that produce efficiencies and peace of mind,” Patrick Brennan, senior vice president of Logistics Solutions at Cox Automotive, said in a news release.
“Backed by Ready Logistics’ exclusive automated processes and transparent, competitive pricing, we can help clients move one to a thousand vehicles across short or long distances.”
The company connects dealers, auctions and car owners to a national network of more than 6,500 carriers who’ve been vetted.
“The ability to transport vehicles quickly and cost-effectively, with little effort required by clients, will become even more essential as the market soon fills with an anticipated abundance of off-lease vehicles,” said Brennan.
Additionally, Ready Logistics provides its clients with tracking reports and partners with other Cox Automotive brands to create greater value for its clients.
A current program, “Ready. Set. Pause, ” allows dealers who buy DealShield’s Automatic Purchase Advantage guarantee and choose Ready Logistics’ full-service transportation services to stop the clock on their coverage while a vehicle is in transit.
MetroGistics, a provider of automotive logistics services, recently announced four different executive promotions.
The personnel moves the company made are:
— Jeremy Cope to executive vice president, operations and strategy
— Martha Garcia-Perry to vice president, growth initiatives and integration
— Dustin Ruch to vice president, business development
— Melissa Trautman to vice president, marketing strategy and integration.
MetroGistics indicated Cope, Ruch and Trautman are based out of the company’s headquarters in St. Louis, while Garcia-Perry is based out of Metro Auto Express in Thornton, Colo.
Ruch previously served as director of business development for MetroGistics. He joined the company the year it opened in 2010.
Cope joined the company in 2012, and has 13 years of experience in auto transport. He was recently named to Auto Remarketing’s 40 Under 40.
Garcia-Perry has been with MetroGistics since 2013. Earlier this year, she was named among the Women in Remarketing by Auto Remarketing.
Trautman joined MetroGistics in 2012 as an insurance analyst, and quickly moved up the ranks to process improvement manager and director, process improvement and planning.
“Our tremendous growth and industry leadership would not be possible without these four outstanding individuals,” said William Billiter, co-founder and managing partner. “We salute Jeremy, Martha, Dustin and Melissa and congratulate them on their well-deserved promotions.”
For more information about MetroGistics, call (877) 571-6235 or visit www.metrogistics.com.
One of the key benefits of bringing AmeriFleet into the fold, say MetroGistics executives who talked with Auto Remarketing ahead of Monday’s merger announcement, is having the capability of what is known as “final-mile delivery.”
MetroGistics Holdings and Tailwind Capital, which owns a majority stake in MetroGistics, announced the purchase of AmeriFleet on Monday. With this comes the merger of MetroGistics and AmeriFleet.
Having AmeriFleet — which will keep its distinctive brands, headquarters, executives, etc. — in the same family will allow the combined company to provide services to its clients “from cradle to the grave,” said MetroGistics co-founder and managing partner Scott Naz, whether that’s hauling vehicles, title/registration, storage or final-mile delivery.
Regarding the latter, AmeriFleet works with fleet management companies, where they might serve folks like pharmaceutical sales representatives or people who work in diplomacy that need vehicles from a fleet temporarily, said MetroGistics co-founder and managing partner William Billiter.
AmeriFleet takes care of the final-mile delivery to that client and can handle things like explaining various vehicle amenities to the client.
Such capabilities could be a complement for the McNutt area of MetroGistics’ business and its work with dealerships.
So, for example, for McNutt’s dealer customers, they can offer final-mile delivery for the retail consumer, he said.
With the market seeing more of this model in the form of entities like Tesla or a Carvana, this can help dealers offer that same kind of service. Billiter said. In fact, MetroGistics does that today with one of its larger dealer groups, offering some delivery services.
“As these other models pop up,” he said, referring to the Teslas and Carvanas of the world, “there’s a means (for dealers) to have that final-mile delivery.”
Given the way car-buying is changing amid these models, such an offering could be increasingly important.
Naz said: “A lot of people are buying cars from their couches and they’re wanting them delivered right to their doors. So, having a solution that will be able to complement that and handle those requirements is going to be really important for us. We see that as really important going forward.”
Additionally, AmeriFleet and its 68 locations U.S. gives the company a brick-and-mortar presence throughout the U.S., Billiter said. Previously, he said, MetroGistics didn’t have opportunity to store cars. But this gives them that capability.
“For us, we can pretty much do anything when it comes to moving a car, or titling a car now,” Billiter said. “Or storage for a lot of dealerships and maybe OEM-type (services) where we can deliver the car directly to the consumer without them ever setting foot in the dealership, which is kind of where the final-mile delivery aspect comes into play.”
MetroGistics and AmeriFleet are merging.
MetroGistics Holdings and Tailwind Capital, which owns a majority stake in MetroGistics, announced the purchase of AmeriFleet on Monday.
The merger of their operations is designed to create a “one-stop-shop” for various fleet-related services like driveaway trucking, storage, title and registration and compliance.
“This is incredibly exciting news for MetroGistics, AmeriFleet and our combined customer base,” William Billiter, co-founder and managing partner of MetroGistics, said in a news release.
“Both companies have enjoyed steady growth, and once we start working closely together, we will begin targeting new markets and service lines that will help us grow exponentially,” he said. “We believe that this holistic white-glove final-mile delivery service will provide tremendous value to our clients and partners.”
AmeriFleet began in 1997 and has 68 locations throughout the U.S., Canada and Puerto Rico. Rich Dennis is its co-founder and chief executive officer,
“Tailwind has made a conscious investment in our staff and they are confident in their ability to grow AmeriFleet and MetroGistics to new heights,” Dennis said in a news release. “They believe strongly in what our two companies represent, and believe the synergies between our businesses will truly create a service offering unmatched within the vehicle-logistics space.”
John Norris, AmeriFleet’s president, added: “The combination of these two acknowledged fleet logistics leaders is a winning formula for providing world-class service and value to our mutual clients. The complementary nature of our service capabilities creates the platform for delivering a market-leading suite of services for the commercial fleet, OEM, dealer and rental-car markets.”
“AmeriFleet’s various lines of service really complement our core competencies,” said Scott Naz, co-founder and managing partner of MetroGistics. “We both view ourselves as innovative and tech-savvy companies, and now our combined entities will spur even more innovation and accelerated growth.”
United Road Services announced a couple of shifts in its senior leadership Tuesday. Kathleen McCann will continue in her role as chief executive officer, but will move from serving as president to becoming the chairman of United Road’s board of directors.
Mark Anderson is now president, while also keeping his existing role as chief operating officer.
"I have great confidence in Mark's ability to work with our exceptional team in growing our business. I trust him and know that his energy and dedication to our people, our customers and our company will serve us all well," McCann said in a news release.
McCann replaces chairman Michael Eisenson, the managing director and CEO of United Road's majority shareholder, Charlesbank Capital Partners.
“The board is delighted to appoint Kathleen as chairman. Under her leadership, United Road has made great progress in achieving the strategic objectives we set at the time of our investment in 2012, nearly doubling the size of the business through a combination of organic growth and accretive acquisitions,” Eisenson said.
“I am confident that Kathleen, Mark and their team will continue to build on this progress, displaying the drive, talent and focused execution that have solidified the company's position as a market leader. I look forward to offering my continued support as a member of the board,” he added.
McCann joined the company as president in early 2011 and became CEO in 2012. Anderson joined United Road as COO in 2014.
