The $40 million will be spent over the next two years improving reconditioning centers and building new ones, Manheim President Grace Huang said. The investment also covers updating reconditioning equipment and the entire apprenticeship program.
"It's a significant investment, and very important to us," Huang told Automotive News. "Over the next couple of years, we'll continue to invest that type of amount into reconditioning. It's very much a huge strategic pillar for us for the future."
Bolstering its reconditioning technician work force today ensures the company is prepared for long-term growth, Huang said.
From 2015 through 2018, Manheim invested $17 million in its reconditioning services, most of which focus on paint and body work as well as detailing for vehicles hitting the wholesale market. In that time frame, Manheim reconditioned over 100,000 vehicles for mobility and retail clients.
In total, Manheim reconditions about 3 million vehicles each year.
This investment, however, will apply to the breadth of the company's reconditioning efforts, which include future programs and partnerships. Manheim supplies reconditioning services to clients including Lyft, Getaround, Fair, Hertz and Flex Fleet Rental.
Cox needs more technicians for its mobility ventures, too. The diversified automotive conglomerate spent up to $3 million converting 25 acres at Manheim Metro Atlanta into a reconditioning site for its mobility brand Pivet. It handles vehicle maintenance, storage, parking and logistics, as well as tasks such as state registration filings and inspections for vehicles moving in and out of fleets.