Manheim's auction in Lilburn, Ga., is one of six locations it is opening in underserved markets.
Manheim, North America's largest wholesale auction company, is getting bigger by going smaller.
Manheim is opening six auction locations this year, the company said.
Each of the locations will run one- to four-lane auctions — the smallest Manheim has ever used. Until now, the company's smallest company-owned locations tended to have four or five lanes, while the bulk of Manheim's North American facilities are in the 15- to 20-lane range, said Grace Huang, Manheim's senior vice president of inventory services. The company's flagship auction, in Manheim, Pa., has 35 physical lanes and three more dedicated to online auctions.
The new auctions will be
• Manheim St. Louis Gateway, in Bellville, Ill.
• Manheim West Texas, in Lubbock, Texas
• Manheim Montgomery, in Montgomery, Ala.
• Manheim Lilburn, in Lilburn, Ga.
• Manheim American Fork, in American Fork, Utah
• Manheim Wilmington, in Wilmington, N.C.
The properties push the company's services into underserved markets. In some cases, they will replace operations conducted out of custom trailers.
Those so-called mobile sales, hosted by a dealership and featuring a live auctioneer and on-site support by Manheim, are growing in popularity. Manheim's mobile transactions grew 52 percent between June 2016 and June 2017, the company said.
One trailer operated in two Wilmington, N.C., locations for more than 10 years. D&E Mitsubishi, Manheim's current host in the area, will also partner with Manheim in the new, two-lane location.
More may be coming. Another development property in Chantilly, Va., is in the works.
Rosenthal Automotive Group and other regional sellers approached Manheim about opening it after the success of a mobile auction in Fredericksburg.
"Our expansion decisions have been dealer-driven," said Randy Beil, vice president of mobile and local for Manheim, in a statement. "Clients collaborate with us to open facilities because they want an open, transparent marketplace that delivers better pricing and vehicle retention than typically available at traditional dealer-to-dealer sales, such as bid-lot sales or dealer self-hosted lot auctions."
The new sites will offer an abbreviated version of Manheim services. The multiconsignor auctions will include inspections and Simulcast, but only limited reconditioning services. Though the sites are small, Huang said Simulcast and OVE, the company's online tools, magnify the sales potential.
"For a lot of these locations, these cars are already located in these markets," she said. "We have the ability to broadcast these vehicles all over the U.S., but the vehicle still has to live somewhere and be housed somewhere."
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