ADESA Corporation Publishes Inaugural Edition of ``Global Vehicle Remarketing''
LAS VEGAS--Feb. 27, 2001--Used vehicle sales in the U.S., which have been consistently strong even during recessions and new vehicle sales slumps, are expected to rise from 41.6 million units in 2000 to 46.5 million units in 2005 according to "Global Vehicle Remarketing", a new study issued by ADESA Corporation.The first edition of this ongoing series of reports focuses on the U.S. and Canadian markets. Canada adds another three million units annually to used vehicle sales in North America, the study finds.
These used vehicle sales are expected to generate growth in sales in the vehicle remarketing industry, of which auction companies like ADESA are a major component. The study projects that auction sales in the U.S. will grow from 8.9 million units in 2000 to nearly 10.0 million in 2005.
"Clearly the flow of vehicles into the vehicle remarketing industry is ample, growing, and secure," said Jim Hallett, president and CEO of ADESA Corporation, citing one of the study's conclusions.
This new "Global Vehicle Remarketing" report series is aimed at generating a better understanding of the vehicle remarketing industry, which includes auctions (including wholesale automotive auctions, medium and heavy commercial truck auctions, and salvage auctions), wholesalers, and dealers. The study includes a detailed, two-page flow chart that concisely captures the various elements of vehicle remarketing, as well as the volumes associated with each step in the process.
The report was produced under the direction of Frank Stephens, executive vice president of marketing and strategic planning, and is authored by Tom Kontos, vice president of industry relations and analytical services.
The report provides other insights including the following.
| -- | Vehicles have a lifecycle and go through several periods of ownership and remarketing before their remaining value is salvaged and they are scrapped. |
| -- | There are 663 million vehicles in operation around the world, and more than one-third (over 230 million) of them are in the U.S. (over 213 million) and Canada (over 17 million). |
| -- | Medium and heavy commercial trucks are currently experiencing an oversupply in the used truck market. Overcoming the glut will require a concerted remarketing effort, and wholesale automotive auction companies like ADESA can play a major role in this. |
| -- | High new vehicle sales since 1994, plus record new auto sales in 1999 and 2000 have filled the remarketing pipeline with plenty of late-model vehicles, many of which will come off 24-month and 36-month leases in the coming years. |
The report also includes several new "indices" of auction volumes, prices, and conversion rates for four major market segments:
1. Factory (primarily program vehicles);
2. Captive finance (primarily off-lease vehicles sold by the
automobile manufacturers' finance arms);
3. Fleet/Lease (includes off-lease vehicles from non-captive
finance companies as well as commercial fleet vehicles); and
4. Dealer consignment (or dealer-to-dealer auction sales)
Future reports in this series will cover other markets and specific topics like used vehicle prices, the salvage industry, and the role of the Internet, as well as other markets around the world. ADESA Corporation will also regularly release the above indices. For additional information call 800/923-3725 ext. 2144, or visit the ADESA website at www.adesa.com.
"We believe this is the most up-to-date information available and we're eager and excited to share it with our customers," said Hallett.
Headquartered in Indianapolis, Indiana, ADESA Corporation is a wholly owned subsidiary of ALLETE , a unique and diversified multi-services company. ADESA operates 54 wholesale vehicle auctions strategically located across the United States and Canada. In addition, the Automotive Services segment of ALLETE operates several other related businesses in the vehicle remarketing industry including salvage and recovery services, Automotive Finance Corporation (AFC) dealer financing, Great Rigs auto transporters, PAR remarketing services, and ADESA Importation Services (AIS).