Two online vehicle remarketing companies, AutoTradeCenter Inc. and Onlane Group Inc., are merging.
The former competitors are creating ATC-Onlane Inc. The new company expects to sell 200,000 vehicles this year, says Mark Jensen, AutoTradeCenter COO.
The combined company will manage 30 remarketing programs.
Both companies operate in the United States and Canada. They create and manage online auction channels for automakers' captive finance companies, banks, and fleet and leasing companies.
ATC Onlane will specialize in remarketing end-of-lease vehicles, dealer consignment vehicles and retired fleet and daily rental vehicles, principals say.
The two companies serve different groups of sellers and buyers, says Onlane President Clive Kinross. ATC-Onlane will offer vehicle sellers a diverse network of 20,000 dealers, Kinross says. It will provide dealers a broader inventory of used cars and trucks, he adds.
"Whether it's a $2,000 vehicle in a portfolio or a $200,000 vehicle in a portfolio, we know we have the right cross section of dealers to purchase those vehicles," Kinross told Automotive News.
ATC-Onlane will be based in Menlo Park, Calif., AutoTradeCenter's home city. It will have offices in Toronto, where Onlane Group has its headquarters, and in Mesa, Ariz.
The transaction is expected to be completed in August. Terms were not disclosed.
AutoTradeCenter's customers include Audi Financial Services, American Honda Finance, DaimlerChrysler Financial Services, Ford Motor Credit, Volkswagen Credit, Subaru of America and Porsche Financial Services.
Among OnLane's customers are American Suzuki Motor Corp., BMW Financial of Canada, Southeast Toyota Finance and World Omni Financial Corp.
Jensen says the new company will keep those clients.
AutoTradeCenter's CEO, Roger Butterwick, will become CEO of ATC-Onlane. Onlane's CEO, Michael Stein, will be chairman.
You may e-mail Arlena Sawyers at [email protected]