Manheim Auctions Launches E-Commerce Subsidiary
6 March 2000
Manheim Auctions Launches E-Commerce Subsidiary
Newly Created Spin-Off Company Uses the Internet to Target Business-to-
Business Used-Car Transactions Outside Traditional Auto Auctions
ATLANTA, March 6 Manheim Auctions, Inc. today announced
the launch of Manheim Interactive, Inc., a separate, wholly owned business-to-
business e-commerce company that answers the demand from dealers,
manufacturers and other corporate remarketers for new ways to manage the rapid
influx of used vehicles entering the wholesale marketplace.
Manheim Interactive (http://www.manheim.com ) uses the Internet and the desktop
computer to create innovative ways for dealers and remarketers to buy and sell
used cars, and to help dealers run their stores more efficiently.
"The vast majority of wholesale used-car transactions take place outside
the auto auction property. This venture positions Manheim to expand into
areas previously untouched by traditional auto auctions," said Dennis Berry,
president and chief executive officer of Manheim Auctions.
Editorial Summary
* Manheim Interactive consolidates all of Manheim Auctions' existing
wholesale Internet assets and its Tracker dealer management software.
* New services in development from Manheim Interactive will enable
customers who use the Internet to sell vehicles directly from their
lease turn-in yards and dealership lots.
* These new services will feature an "open network" design that will
allow other auction companies to list vehicles for sale and provide a
common platform for dealers and remarketers.
* The strategic design of Manheim Interactive was fueled by feedback from
dealers, manufacturers, banks, fleet, lease, finance and rental-car
companies who desire a fast, efficient, around-the-clock mechanism for
buying and selling vehicles online.
* Hal Logan, former marketing executive for Manheim, will serve as
Manheim Interactive president and chief executive officer.
"Manheim will continue its support of auto auction initiatives such as
Auto Auction Services Corporation. In addition, it will provide access to new
services to all auto auctions including chains and independents," Berry said.
"Remarketers have told us repeatedly that they do not want to deal with a
number of different technologies. Thus, we have always made our CyberServices
open to all comers. Today, ADESA, the Canadian Auction Group and several
independents use Manheim's CyberLots to serve their customers' needs. Manheim
Interactive will continue that same spirit of service and cooperation."
Manheim Interactive brings a valuable set of assets to this opportunity,
including:
* Legacy
-- The Manheim brand name has been synonymous with quality and
excellence for 55 years.
-- Manheim Auctions' understanding of the needs of dealers and
remarketers is second to none.
* Internet Expertise
-- Manheim Auctions has invested more than $15 million in online
development for its wholesale auctions within the last three
years.
-- Manheim employs a staff of 70 technology managers who have helped
introduce Manheim's tech services to countless customers over the
last two years.
-- Since 1996, Manheim has sold approximately 60,000 vehicles worth
more than $1 billion through its Manheim Online arm.
-- Manheim founded and is majority owner of AutoTrader.com, the
world's largest retail used-car marketplace with more than
1.5 million used vehicles for sale from over 46,000 dealers and
250,000 individuals. Listings are free to dealers.
* Culture of Innovation
-- Cox Enterprises, Inc., Manheim's parent, is recognized as one of
the most innovative players in the Internet space with substantial
investments, including Cox Interactive Media - a network of 30 city
sites; Val-Pak Online; MP3.com; Exite@Home; iVillage; LookSmart;
Tickets.com; Homestore.com and many more.
Answering the Call
Through a series of surveys and polling conducted by Manheim at various
auction locations, customers expressed a variety of sentiments regarding the
exchange of vehicles over the Internet. Their responses helped Manheim
confirm that dealers:
* Will buy vehicles online, sight unseen, from a trusted company that
stands behind the transaction;
* Will purchase vehicles online through both a fixed-price mechanism as
well as an auction mechanism;
* Expect online transactions to be as easy and efficient as in the
physical auction lanes;
* Expect basic requirements to be fulfilled - such as certification,
digital imaging and condition reporting - and that transaction issues
will be dealt with swiftly.
Experienced Leadership
Hal Logan, president and chief executive officer of Manheim Interactive,
previously worked as senior vice president of marketing for Manheim Auctions.
He will report to Berry. Logan has extensive experience and expertise in the
Internet industry, including his key role in helping The Washington Post, Dow
Jones and Pacific Bell launch their online ventures.
Logan's track record also includes serving as president of Vicinity Corp.,
a leading provider of mapping, Yellow Pages and store locator services on the
Web. In addition, Logan provided consulting services for Manheim Online,
Tracker and AutoTrader.com.
"A tidal wave of late-model, low-mileage vehicles has arrived at the shore
of the remarketing industry," Logan said. "Manheim Interactive exists to help
the industry manage this sea of used cars in timely and efficient ways.
"We are incredibly fortunate to be able to build our new business on the
rock-solid foundation of Manheim Auctions," Logan continued. "The auctions
are, and will continue to be, the engine that drives us. And the technology
we have developed to complement our core business will enable us to go beyond
the borders of our physical auctions to tap areas of new opportunity."
Depth of Services
Manheim Interactive offers its subscribers three components:
1) The CyberSuite
* All of Manheim's established online remarketing services are housed
here, including:
-- CyberLots - The forum for purchasing vehicles online at a fixed
price
-- CyberAuctions - The online bidding forum for vehicles
-- Pre-Sale lists - An online record of vehicles available for
sale
* In addition, Manheim Interactive will soon introduce a set of new
products including:
-- Dealer-to-Dealer services - A forum for dealers to trade
vehicles directly between each other
-- Manufacturer-to-Dealer services - A forum for dealers to
purchase vehicles directly from the manufacturer
-- Corporate-to-Dealer services - A forum for dealers to buy
vehicles directly from banks, finance companies, fleet, lease
and rental-car companies
2) The MyManheim Internet Portal
* MyManheim is an advanced Web portal that provides users with
personalized and informative content including industry news,
general news, financial information, stock quotes, sports and
weather.
* Through a log-in and password system, MyManheim users have the
ability to select the type of content that appears on their
desktop.
* MyManheim also includes features that enable dealers to easily
interact with Manheim's physical auctions, such as registering
vehicles for specific lanes; checking financial accounts; checking
the title status of purchased vehicles; and conducting other
normally time-consuming tasks via the Internet.
3) Tracker
* Providing simple solutions for independent auto dealers, Manheim's
Tracker software delivers an efficient system for managing
businesses. The software suite includes Tracker, Tracker Plus and
BookKeeper programs.
* Each program helps support the aspects of an auto dealership, such
as inventory management, sales, specific forms and reports.
"Toyota Financial Services has worked on the 'Direct' Internet sale
process with Manheim Auctions and Manheim Online as a partner since 1995,"
said Tom Haeberer, Internet remarketing manager for Toyota Financial Services.
"We believe the long association we share in this has strengthened our
relationship with both the corporate office and the field auctions of Manheim.
"Manheim Interactive is the future. We see the business-to-business
component as a valuable tool we offer to our Toyota and Lexus dealers," he
continued. "We look forward to growing this important segment of our
remarketing efforts with Manheim Interactive in the ensuing years."
About Manheim Auctions
Manheim Auctions has set the standard for quality in the wholesale
automobile auction industry for more than 55 years. With locations in the
United States, Canada, Puerto Rico, France, the United Kingdom and Australia,
the company is dedicated to helping dealers succeed and to enabling auto
manufacturers, banks, fleet, lease, finance and rental-car companies sell
their used-car inventories efficiently and effectively. Manheim Auctions is a
leading innovator in automotive e-commerce with Manheim Interactive, Inc., a
wholly owned subsidiary providing services including CyberLots; CyberAuctions;
the MyManheim Web portal; and Tracker dealer support software. Manheim also
offers reconditioning and certification services, dealer floor planning and
government auction services.
Manheim Auctions is a member of the National Auto Auction Association
(NAAA), a trade organization for wholesale automobile auctions. The NAAA has
more than 300 members worldwide, 260 of which are located in the United
States. Manheim Auctions is a fully owned subsidiary of Cox Enterprises, Inc.
CONTACT: Denise Godoy of Alexander Ogilvy Public Relations Worldwide,
404-881-2335, dgodoy@alexanderogilvy.com , for Manheim Auctions,
Inc., or Katie Judge of Manheim Auctions, (404) 843-5801, or
katie.judge@cox.com