Manheim is realigning the market structure of its 79 physical auction sites into two new divisions, said Grace Huang, senior vice president of inventory services.
On Jan. 1, the company will place 29 of its smaller sites under the auspices of its new Local & Mobile Division. The marketing focus of those sites will be to grow the company’s business with local franchise and independent dealers and expand its mobile auction business, said Huang.
Manheim’s remaining 50 auction sites will make up its National Division. Those sites will focus on expanding services aimed at both commercial customers and dealers. Among those services is Manheim’s Retail Solutions initiative for dealers under which the auction company preps and reconditions vehicles to front-line, retail-ready condition.
Currently, Manheim’s operations are divided geographically into east and west divisions.
Huang said the company’s current structure has served it well, but the realignment allows it to tailor services to the needs of local dealers and provides a greater array of services to commercial customers and dealers.
The change also positions Manheim for growth, she said.
“Ultimately, we want to offer our clients the best experience, tailored for their needs and to help them grow their business,” she added.
Manheim currently provides its Retail Solutions service in Denver to Sonic Automotive Inc.’s EchoPark chain of used-car dealerships and, in Chicago, to 12 clients: seven independent used-only car dealerships, two automakers, two large dealership groups and one franchised dealership group.
Manheim’s mobile auctions are large trailers that have satellite connections and equipment that can be wheeled on a cart, allowing the company to hold a one-time auction virtually anywhere from a dirt lot to a conference room.
Manheim conducts more than 25 such mobile auction sales each month.
Manheim has tapped Alan Lang, senior vice president of operations at NextGear Capital Inc., to lead the Local & Mobile Division as its vice president, Huang said. NextGear Capital provides lines of credit for dealers to buy vehicles.
Mike McKinney, Manheim’s regional vice president for its east operations, will become division vice president of the National Division.