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THE OFFICIAL MAGAZINE OF THE NATIONAL AUTO AUCTION ASSOCIATION

                                                               W W W. N A A A . C O M

                                                               W W W. N I A D A . C O M
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2   | NAAA ON THE BLOCK SEPTEMBER 2021   www.naaa.com
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IN THIS ISSUE
      ON THE BLOCK MAGAZINE            VOL. 8 NO. 5

     Departments

     04        President’s Message
               A note of gratitude in the face of unforseen challenges and opportunities
               for the Association.

     05
               CEO’s Message                                                                       THE OFFICIAL MAGAZINE OF THE
                                                                                                NATIONAL AUTO AUCTION ASSOCIATION
               Proactive leadership — the industry is ingrained with a passion
               for succeeding.

     06        Cover Story
               Food trucks offer auctions a taste of fun on sale day.

     11        Association News
               The selection is over and the CEO appointment is complete.
                                                                                           read us online
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                                                                                           Click on ads to link directly to their websites.

     12        Safety First
               Manheim President, Grace Huang gives insight and tips in developing a
               safety culture.
                                                                                           previous issues

     14        Auction News
               Another auctioneer champ from Akron Auto Auction.
               A good time for everyone at a Mid Kansas Auto Auction event.
               Moving autos via rail pilot program launches at State Line Auto Auction.    July 2021                   May 2021
               Christina Potts, a strong addition to America’s Auto Auction.
               Local auction network for Manheim.
               20-year State Line Auto Auction veteran John Williams is celebrated.
               Manheim analyzes current trend to solve today’s transportation issues.
               3D vehicle imaging provides lifelike viewer interaction.

      18       Member Message                                                              March 2021                  January 2021

               A beloved industry.
                                                                                           On the Block Wants To Hear From You.
               Happy to be a part of the 2021 NAAA Reconnection Event.
                                                                                           Tell Us What You Think!
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                                                                                           and clarity. This is a great opportunity to hear
                                                                                           back from our readers on what you think about
                                                                                           the articles and what topics you would like to see
                                                                                           covered in future issues.

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PRESIDENT’S MESSAGE

Thanks for the Silver Linings and Golden Memories

I
      ’m no meteorologist, but I know from my experience serving as NAAA’s President during a
      global pandemic that dark clouds do have silver linings. And our industry is blessed with
      people who can work together to mine those hidden riches to the benefit of all.
The last three years on the executive team have confirmed what I’ve observed during my
three decades in the auto auction business and will never forget: teamwork, resourcefulness,
commitment, and caring are its fundamental character. That’s what gives our members the
strength and resilience to turn COVID’s unforeseen challenges into unexpected opportuni-
ties as we reimagined our operations, adopted technologies, and adjusted our best practices
to be successful in the new normal.
Seeing the display of cooperation and willingness to involve everyone from the top down
in implementing these changes inspired me to formally recognize the core values of a
collaborative, respectful auction team environment by creating the NAAA Diversity and
Inclusion Pledge.
Also, I was encouraged by the demonstration of maintaining relationships despite lockdowns,       Julie Picard
social distancing, and other public health restrictions. For me, the chance to connect with        NAAA President
our members, share information, and listen to feedback has been a favorite part of being on
the executive team. So it was my privilege to participate in the inaugural President Calls, us-
ing video conferencing as a way of touching base with our members through virtual visits.
In addition, I’m pleased to say we saw this as a time to enhance our communications by
upgrading our NAAA headquarters technology and launching the free twice-weekly NAAA
SmartBrief e-newsletter.
Another important form of communication I was taught as a child is the thank you note.
Although this is not handwritten, I want to use my final president’s column to express my
warmest gratitude to all those who made these silver lining opportunities more than just
pie in the sky. I am extremely grateful for the support and help of our NAAA membership,
our committees, NAAA headquarters staff, my executive teammates Laura Taylor, Charles
Nichols, Garrison Hudkins, Paul Lips, Charlotte Pyle and Mike Browning, as well as my
Manheim colleagues Grace Huang, Patrick Brennan, and Alan Lang.
Plus, I want to give my heartfelt thanks and happiest congratulations to our new CEO, Tricia
Heon. I’m thrilled with the choice of her leadership and vision for NAAA and the industry.
Of course, most importantly, a big word of appreciation to all our dealers, consignors, and
vendors. We value their partnership and willingness to work with us as we change and
evolve to provide them with the best, most up-to-date service possible.
I’m excited about our “Reconnection Event” at NAAA’s Annual Convention this month in
Chicago, and looking forward to honoring Sandy Schwartz and Janet Barnard. I hope to
see you all there, where I can thank you in person! Until then, be safe, stay well, and keep
looking for those silver linings.

4   | NAAA ON THE BLOCK SEPTEMBER 2021                                                                              www.naaa.com
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CEO’S MESSAGE

Dedication, Loyalty and Same Mission

I
    n my ten years here at NAAA, I’ve had the privilege of meeting and working with many
    of our members, so I won’t take your valuable time to introduce myself. But I would
    ask for a few minutes to share why I wanted to be the next Chief Executive Officer and
    what my vision is for our organization.
So why did I want to take on the weighty responsibility of leadership that my predecessor
Frank Hackett so ably shouldered for 17 years?
My answer is simple: I’m hooked. Since joining the NAAA team in 2011, I’ve found the
world of wholesale auto auctions a fascinating, enterprising, and, yes, challenging industry.
I’ve enjoyed the variety of people it attracts with their various interests and the strong
bonds they form. I love visiting the auctions in the fast-paced atmosphere of sale days. And
I admire the philanthropic spirit of how auctions and their employees are ready and willing
to give back to their communities.
I know I don’t have to tell you how this industry gets into your blood. I hope I can infuse
some new with the old that flows through the association’s veins.                                          Tricia Heon
Even as our world, our industry, and our daily lives face change, NAAA’s traditional mission          NAAA Chief Executive Officer
remains a constant. Since our founding in 1948, our prime priority has always been to
protect the interests of our members and promote the progress of our industry. Yet how
we fulfill that duty in the ever-evolving business landscape will vary due to the times
and circumstances.
Today, it has become more important than ever to focus on the needs of both our members
and our customers using a fresh lens as we all head into the next decade of the 21st century.
I believe in taking a proactive approach to strategic planning, regular reexamination, clear
communication, and collaboration with other industry leaders to achieve our mission.
One of my first priorities is to review our mission statement and evaluate how well we’re
addressing the issues in our industry and the necessities of our membership for today and
tomorrow. That also includes closely looking at the benefits and services NAAA provides to
see how we may enhance and enrich them to serve our members better. You’ll find a few
of my other goals outlined in an article among these pages, and I promise to keep you
informed and give you more details through this column.
This is an exciting time to take the wheel at NAAA as our strategic partners, the National
Automobile Dealers Association and National Independent Automobile Dealers Association,
have recently changed leadership. I look forward to their new and different perspectives,
as well as that of the second and third generations moving into top executive positions at
many auctions.
Yes, I can feel the blood of the industry pumping and my heart beating with pride to be a
part of it. For the past decade, I’ve been dedicated to advocating for our members; now, I’m
honored to be selected to serve as the National Auto Auction Association’s CEO, charged
with overseeing its evolution to ensure a bright, prosperous future.

www.naaa.com                                                                                    SEPTEMBER 2021 | NAAA ON THE BLOCK |   5
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ON THE COVER

When the pandemic put the brakes on the long-established      Armed with a spatula and a hot grill, the hunger warriors on
practice of auto auctions providing an on-site café for the   wheels helped combat the appetites that arise from a long,
convenience of their customers, many steered their dining     busy day in the lanes. The auctions found it a great way to
services in an imaginative direction. They turned to those    offer a rotating variety of menu options — even creating sale
freewheeling entrepreneurs in their communities who dish      day themes to pair with a chef’s particular specialty — while
up mouthwatering meals from vehicles — food trucks!           supporting local small businesses. Letting the food trucks roll
                                                              in was an innovative win-win solution.
                                                              Pictured here are just a few examples of the food trucks that
                                                              kept everyone well fed and happy on sale days.

6www.naaa.com
   | NAAA ON THE BLOCK   SEPTEMBER 2021                                                                         www.naaa.com
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Onsite Auction Roll In to Continue Quality Services for Customers
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Brought to you by:

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                                                                                                                                 Miles        ION
                                                                                                                        Carlotta ME AUTO AUCT
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Always up for causing some trouble, Harley                                                    TA
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and Deploys some Malicious spyware.                         TAP                              TAP                            Autoims admins are on it!

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                                                               WEAPON SCAN:
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 pinball Scans Carlotta with his authentication visionator.
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Meanwhile, back at AutoIMS HQ...              I’ll do       Always having one more trick up her sleeve, Harley
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 I see her in the                                           deploys her Escape-o-Matic Dust and gives Pinball
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HarlEquin Hacker.                                                                                              will be ready and
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                                                                                                               The job of a
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ASSOCIATION NEWS

Association Makes a Leap Forward in Leadership
                                                                                                   NAAA President-Elect Charles Nichols agreed. “After reviewing a long list of
                                                                                                   qualified candidates, we are certain we chose the person who is the right
                                                                                                   leader for the future of the association. Tricia’s commitment to the industry
                                                                                                   and vision stood out among all.”
                                                                                                   One of Heon’s initial goals is working with the board of directors in re-
                                                                                                   viewing and evaluating the already substantial benefits and services NAAA
                                                                                                   provides to determine how those may be enriched to meet the member-
                                                                                                   ship’s needs in the 21st century. She also wants to be proactive in long-
                                                                                                   term strategic planning with the executive team.
                                                                                                   Her other initiatives include increasing avenues of communication among
                                                                                                   the remarketing community, expanding the advocacy program to be
                                                                                                   the leading, strong voice for the industry, and capitalizing on the digital
                                                                                                   transformation auto auctions underwent during the pandemic by applying
                                                                                                   those lessons to chart the course for tomorrow.

NAAA Executive Officers
                                                                                                   “NAAA has achieved much under Frank’s leadership that leaves as his
                                                                                                   legacy a strong foundation on which to build and develop with a focus
(L to R-Front Row): Charlotte Pyle, Board Secretary; Laura Taylor, Chairman of the Board;
                                                                                                   on the future,” Heon said. “I’m eager to collaborate with others to find
Julie Picard, President; (L to R-Back Row); Paul Lips, Treasurer; R. Charles Nichols, President-   new ways of enhancing NAAA’s ongoing mission to protect the interests of
Elect; Garrison Hudkins, Vice President; Frank Hackett, Consultant, and Mike Browning,             our members and promote the progress of our industry. That, of course,
Executive Vice President.                                                                          has been our duty since the beginning in 1948, but how we fulfill it must
                                                                                                   evolve, adjust, and adapt to address the challenges of an ever-changing
Following a rigorous six-month selection process guided by executive search                        business landscape.”
firm Spencer Stuart, the National Auto Auction Association Board of Directors                      She added that her past decade working for the association has been
appointed Tricia Heon as the organization’s next Chief Executive Officer.                          rewarding and looks forward to serving as its chief executive.
Heon, formerly NAAA’s Chief Operations Officer, took the wheel in July,                            “I’m extremely proud of the team at NAAA,” Heon said. “They’re a small
succeeding Frank Hackett on his retirement after 17 years in the position.                         band of dedicated individuals who do the work of staff twice its size to
He will continue to serve as a consultant during the leadership transition.                        provide the membership daily with the best service possible. I know that
Heon is the first woman to head the 73-year-old association, which represents                      with their support, we can take what we do for our members and the
more than 340 auction members and 130 associate members who comprise                               industry to the next level. And it will be an honor to lead such a team.”
the leading remarketers of used vehicles and related auction services
in the world.                                                                                                                             Tricia Heon
“This marks a milestone for NAAA and for the growing number of women                                                               Chief Executive Officer
who have chosen to build careers in our traditionally male industry,” said                                                    National Auto Auction Association
NAAA Board Chairperson and Past President Laura Taylor. “Tricia has been a
valued part of this organization for ten years. She will bring that experience
and knowledge with a fresh perspective and new ideas to her CEO role.”
Heon joined NAAA in 2011 as the Legislative Director and Operations
Manager and was promoted to Chief Operations Officer in 2019.
During her decade with NAAA, Heon has been responsible for the creation of
its Political Action Committee, the annual Day On The Hill advocacy event
in Washington, D.C., and the monitoring of federal and state regulations.
She has also been instrumental in developing various projects, such as the
study to address the auto technician shortage and reports on the future of
the industry, as well as planning meetings, programs, and the convention.
Before coming to NAAA, Heon worked as a local government budget analyst
and as a consultant projecting the impact of the federal budget on various
entities. She holds a B.A. in Economics and Political Science from The Uni-
versity of Albany and earned a Masters in Public Administration at Syracuse
University’s Maxwell School of Citizenship and Public Affairs.
“We’re thrilled and could not be happier with the choice,” said NAAA
President Julie Picard. “Tricia’s strong organizational and communication
skills, along with her outstanding professionalism, industry awareness, and
dedication, have demonstrated she is up to that task.”
www.naaa.com                                                                                                               SEPTEMBER 2021 | NAAA ON THE BLOCK |             11
SAFETY FIRST

Safety: Preparing for the Unexpected                                      By Grace Huang, Manheim President

Manheim has a long and dedicated track record of making it a priority          That same year, Manheim was
to try to ensure the safety of its employees, clients and guests, both in      severely impacted by a different
the lanes and on the lots. And yet, the unprecedented events of 2020 – a       type of disaster. In the overnight
global pandemic, social and political unrest, devastating wildfires, and a     hours of March 3, a powerful
hurricane season for the record books – were a wake-up call that safety        F3 tornado with 175-mph winds
concerns can happen in both expected and unanticipated ways.                   ripped through Middle Tennessee,
                                                                               causing death and destruction.
At Manheim, safety is a core value and at the heart of everything we do.       Our Nashville location took a
It is a commitment that served us well last year.                              direct hit, suffering extensive
In March, when COVID-19 hit, our ongoing technology investments                damage that General Manager
paid dividends, allowing Manheim to pivot to all-digital sales nearly          Sam Chaple described as a “punch
overnight. From that moment, every decision we made was in support             in the gut.” Manheim was able to punch back and recover six months
of the health and safety of our clients, team members and the com-             later by grit, determination and execution of our Business Continuity
munities we serve. By late November 2020, we were able to safely               Plan. It includes procedures to protect the safety of our team members,
phase in a return to live, in-lane physical auctions, due in large part        clients, and locations before, during and after severe weather, and
to our employees and clients abiding by our safety protocols.                  is supported by information and relief resources available from our
                                                                               parent company Cox Enterprises.

Tips to create a safety culture that’s prepared for the unexpected
June is National Safety Month, an occasion to promote the importance of                   Implementing transparent employee engagement
                                                                                 TIP
workplace safety and the need for continual improvement. Our program                      programs to report near misses, injuries and
focuses on enhancements of best practices, training, and resources to                     property damage.
protect our company’s most valuable resources: our clients and our people.
It’s a bold initiative that empowers Manheim’s roughly 12,000 team members                Providing positive employee reinforcement through
                                                                                 TIP
to take an active role in their own safety and the safety of those around                 recognition and reward programs to encourage
them, and to address safety concerns or conditions on the spot.                           continued engagement.

Fundamental elements of our safety culture offer practical ideas that                     Actively working with the NAAA Safety Committee to
can help others in our industry and beyond create a lasting safety
                                                                                 TIP      share our safety processes, collaborate on various safety
culture that is prepared for any challenges. They include:                                initiatives such as training and workplace violence, and
                                                                                          participating in the planning and presentation of
            Establishing an Environmental Health and Safety group                         industry safety events.
  TIP       or safety committee to draw on employee expertise, share
            risk mitigation best practices across locations, and support       One of Manheim’s most successful safety initiatives is “Near Miss,”
            team member safety engagement.                                     which engages all employees in addressing safety issues before they
                                                                               occur. The program has produced a cultural shift when it comes to
            Implementing a safety assessment process focused on                workplace safety at Manheim, resulting in increased reporting of
  TIP       continuous improvement and building a safety-minded                near-miss occurrences, as well as taking action to prevent future
            culture.                                                           incidents. Another core element is “Take 2 for Safety,” a practice that
                                                                               starts each day with a safety reminder at Manheim’s field locations
            Having a business continuity plan in place for severe              and corporate sites nationwide.
  TIP       weather, such as tornadoes, winter storms and hurricanes,
            to prepare teams and operations for natural disasters.             The National Auto Auction Association (NAAA) also offers a wealth of
                                                                               resources to support a safe workplace. Topics range from training and
            Requiring all relevant team members to complete the                certification programs to business continuity planning. To learn more,
  TIP       NAAA’s Auction Safety Certification and Lane Safety                visit www.naaa.com/education_training/training_safety.html.
            Training program.                                                  The unpredictable events of 2020 were a reminder for all of us about
                                                                               the importance of having a plan in place for when emergencies and
                                                                               natural disasters strike unexpectedly.

12   | NAAA ON THE BLOCK SEPTEMBER 2021                                                                                                  www.naaa.com
Congratulations                      Graduating Class 6
   Graduation Ceremony Wed., Sept. 29   Ceremony Location: 2021 NAAA Convention

www.naaa.com                                 SEPTEMBER 2021 | NAAA ON THE BLOCK |   13
AUCTION NEWS

                                                                                 Laura Mantle-Grunden, Akron Auto Auction
                                                                                 Auctioneer, Wins 2021 IAC Championship
                                                                                 Akron Auto Auction is proud to announce that a fourth auctioneer
                                                                                 featured at AAA has taken first place at the International Auctioneers
                                                                                 Championship (IAC). Laura Mantle-Grunden, auctioneer from Columbus,
                                                                                 Ohio, was declared 2021 IAC champion in July at the 72nd National
                                                                                 Auctioneers Association Conference held in Minneapolis, Minnesota.
                                                                                 Laura now joins an elite list of current Akron Auto Auction staff members who
                                                                                 have won the International Auctioneers Championship, including Peter
                                                                                 Gehres (2015), Andy White (2013), and Joseph Mast (2011).
                                                                                 Laura brought her IAC first-place trophy along with her to Akron the first
                                                                                 Tuesday sale after NAA’s weekend conference.
                                                                                 Before the sale began, Chad Bailey, President of Akron Auto Auction, invited
                                                                                 all dealers and staff to gather around in the auction arena to take part
                                                                                 in congratulating Laura on her tremendous accomplishment. After a
                                                                                 lengthy round of applause, Bailey then passed the gavel and microphone
                                                                                 over to Laura and invited her to kick off the sale.
                                                                                 “I’m thankful to be a part of such an amazing team at Akron Auto Auction
(L to R): Chad Bailey, President, Akron Auto Auction, Laura Mantle-Grunden and   every Tuesday.” Mantle-Grunden said. “It’s such a wonderful feeling to
Peter Gehres, 2015 IAC winner.                                                   have auction customers, clients, sellers, and staff members all celebrate
                                                                                 with you.”

Mid Kansas Auto Auction Hosts First Big Annual Event
Mid Kansas Auto Auction (MKSAA) hosted
its second-largest event of the year next to
its anniversary sale at its facility on July 20
and 21. The five-hour-long event offered
nearly 900 vehicles, and over 50% were sold.
The average selling price was approximately
$15,000 per unit, reaching record numbers
of online and in-lane buyers, consigned and
sold cars, and online bids and purchases for
the auction.
A variety of delicious food trucks, drinks, live
entertainment, familiar dealer faces, and per-
fect July Kansas weather made the day. Mark
Ottley, Co-Owner/President of Mid Kansas
Auto Auction, commented, “For being the
first year of this event, it was a huge success.
Everyone had a good time that night, and we
were prepared to hit the ground running the
next morning at our biggest sale yet!”
                                                                                                                                 (L to R): Michele Noblitt, Senior
“Our staff exceeded the goal and crushed                                                                                         Executive, Mid Kansas Auto
expectations,” commented Trevor Ottley,                                                                                          Auction; Mark Ottley, Auction
Co-owner/General Manager. “Those critical                                                                                        Owner; Rob Philpot, Senior
relationships we have been working so hard                                                                                       Account Manager, SmartAuction;
to establish are beginning to come together,                                                                                     Tom Stewart, President of
and we couldn’t be more proud of what we                                                                                         Auction Management Solutions;
have to show here at MKSAA.”                                                                                                     and Kevin Valimont, Director
                                                                                                                                 of Remarketing Services,
                                                                                                                                 SmartAuction

14    | NAAA ON THE BLOCK SEPTEMBER 2021                                                                                                          www.naaa.com
AUCTION NEWS

State Line Auto Auction Celebrates Rail Pilot Program of GM Financial Vehicles
After many years of work and planning, State
Line Auto Auction’s Vehicle Transload Facil-
ity loaded and shipped automobiles from its
on-site rail siding. This rail project was started
in 2009 with assistance from New York State
Department of Transportation, Tioga County’s
Industrial Development Agency, and Erdman
Anthony, Consulting Engineer.
This event marked a collaborative pilot project
between General Motors Financial, Gold Star
Resources, Norfolk Southern, State Line Auto
Auction, and Waverly Trade Center. The expe-
rience and data gained from this pilot project
will hopefully result in regular shipments
from SLAA’s Vehicle Distribution Center via rail
throughout the continental United States.
45 GM Financial motor vehicles from State
Line’s GMF Distribution Center were loaded             (L to R): Marte Sauerbrey, Tioga County Legislative Chairwoman; LeeAnn Tinney, Tioga County Director of Economic
onto auto transport railcars and moved via rail        Development and Planning; Dennis Elias, Erdman Anthony, Project Engineer; Paul Barber, SLAA Owner; Emily Barber, SLAA
from Waverly to the Norfolk Southern Voltz             Owner; Beth Barber Fedorchak, SLAA Owner; Anmol Shah, Norfolk Southern, Assistant Account Mgr.- Automotive; Rob
Vehicle Mixing Center in Kansas City. Their ul-        Jones, Norfolk Southern, Director, Automotive, and Jeff Grandstaff, Gold Star Resources, President.
timate destination was the ADESA Auto Auction
in Kansas City.
                                                       have been involved from the beginning of rail                “This could not have been done without the
State Line Auto Auction was proud to celebrate         development. They helped to complete tasks                   support of county officials, DOT personnel, our
its 40th Anniversary on Friday, June 18. The rail      such as site work and heavy construction. It is              project engineer Dennis Elias, Norfolk Southern
pilot program event the following week coincid-        very fulfilling to see this through completion.              personnel and their automotive representative
ed with this special commemoration.                                                                                 Anmol Shah, and our railroad consultant Jeff
State Line Partner and Owner Paul Barber com-          “We are hoping to be able to leverage our geo-               Grandstaff of Gold Star Resources.
mented, “We are extremely proud of this proj-          graphic advantage to additional new customers
ect. Foremost, I would like to commend all of          who need long-distance transportation services.              “We are also very thankful for our longstanding
our employees who were so helpful and gained           This rail service embellishes our auction and                relationship with GM Financial as they worked
a great deal of knowledge in this new-to-us            distribution capabilities. Clients requiring com-            with us to design and execute this pilot program.”
business realm of railroads. We had individuals        plete transportation service in the northeast can
who loaded vehicles at this inaugural event that       count on State Line to provide it.

America’s Auto Auction Hires 15-Year Veteran to Head National Accounts
                                           America’s Auto Auction has announced that Christina               support to America’s Auto Auction on a national level
                                           Potts has been named the company’s National Client                and a great asset to our 23 auction locations.”
                                           Accounts Manager. A native Texan with 15 years
                                                                                                             Potts began her career in the industry as a transpor-
                                           devoted to the auction industry, she brings a strong
                                                                                                             tation coordinator before signing on with America’s
                                           background in operations, fleet/lease management,
                                                                                                             Houston to head its transportation department and
                                           and client relationships.
                                                                                                             serve as fleet/lease admin manager. Following another
                                           “We are so fortunate to welcome Christina Potts back              two years as fleet/lease manager and commercial
                                           to America’s Auto Auction,” said Tammy Swofford,                  accounts manager in the Houston area, she returns
                                           America’s National Sales Director.                                to America’s.
          Christina Potts                  Potts was part of the inaugural team at America’s Auto            “America’s Auto Auction is a great company, a great
     National Client Accounts              Auction Houston when the facility opened in 2015. She             work family, and I feel like I’m coming home,” said
            Manager                        worked at that location for four years as both transpor-          Potts. “I’d missed the level of customer service that is
                                           tation and fleet/lease manager.                                   such an integral part of America’s operations. As long
                                                                                                             as I’ve been in the industry, I’ve focused on maintain-
                                           “Christina is sure to be a strong addition to our manage-         ing strong connections with customers. I’m proud to
                                           ment team, particularly in this unique and challenging            be part of a company that is not only successful and
                                           time in our industry,” said Swofford. “She’ll be a great          growing but is centered on people and relationships.”

www.naaa.com                                                                                                      SEPTEMBER 2021 | NAAA ON THE BLOCK |                   15
AUCTION NEWS

  Manheim Expands Its Nationwide Local Auction Network, Establishes Presence in
  Northwest Ohio with the Addition of Manheim Montpelier
Finding used vehicles can be challenging for        “We are excited to offer another local, conve-              		 addition to delivering a targeted buyer
dealers today with the industry’s tight wholesale   nient option for dealers to source inventory,”              		 base, these sales also enable consignors to
inventory supply. In a move to offer clients in     said Randy Beil, Manheim regional vice                      		 reduce transportation and travel costs.
northwest Ohio another way to find vehicles,        president. “Our goal is to provide choices for
                                                                                                                All options include an auctioneer and support
Manheim recently expanded its Local Auction         them to do business. Whether it’s kicking the
                                                                                                                staff, along with the Manheim services that
Network to include Manheim Montpelier. The          tires in person at our newest location or doing
                                                                                                                dealers rely on, such as Simulcast, financing,
new location (previously Montpelier Auto Auc-       business digitally, we want to meet our clients
                                                                                                                condition reports and assurance solutions. Due
tion) held its grand opening sale on July 13 and    where they are.”
                                                                                                                to the ongoing coronavirus pandemic, all sales
sold more than half of the 109 vehicles offered.
                                                    Manheim’s local auctions are offered to clients             require clients and employees to wear face cov-
“I’ve been in the car business for over 50 years
                                                    in three ways:                                              erings unless they are fully vaccinated, provided
and need a community sale, as I buy and sell
                                                                                                                state and local mandates permit.
for many different dealers,” said Bob Bolenbaugh,     • 21 locally-branded facilities nationwide
a local wholesaler. “I’m excited about the new      		 via Digital Block™ sales. These sales can                In addition to providing the technology and
sale and team at Manheim Montpelier. Even           		 start with one anchor partner and expand                 expertise to host an auction anywhere, anytime,
when cars are hard to find, we always need more.”   		 to multiple consignors.                                  Manheim uses targeted marketing to deliver an
                                                      • Dedicated trailer or bus units outfitted to             average of 1.25 online and in-person buyers per
The new site represents the first-ever physical
                                                    		 conduct sales both in person and via                     car run in each sale.
presence for Manheim and clients in the region.
With four auction lanes, sales will take place      		Simulcast.                                                “The grand opening sale was wonderful, and
bi-weekly on Tuesdays at 10:00 am and feature         • Event sales that can be held at different               I’m excited to have such an exciting place to
multiple sellers. Currently, Manheim conducts       		venues based on consignor preference. Sellers             do business,” said Kevin Dick, owner of Kevin’s
49 local auction sales each month, including        		 provide the vehicles and location, with the              Motor Sales in Montpelier. “Wishing the best to
31 recurring and 18 event sales.                    		 ideal local auction candidate having at                  all, let’s go Montpelier.”
                                                    		 least 100 vehicles for sale each month. In

John Williams Joins State Line Auto Auction’s Twenty Year Club
John Williams started in the body shop at State                                                                 “For instance, John was part of the crew that
Line Auto Auction (SLAA) in 2001. His 20th work                                                                 created our award-winning pedal truck in 2014.
anniversary was June 28. During his career, John                                                                His handiwork has also been featured in our
has been a stalwart by exhibiting his versatility                                                               annual State Line calendar.”
regarding various tasks and procedures.
                                                                                                                “John is yet another member of our body and
SLAA President Jeff Barber said, “Our body shop                                                                 paint shop that has joined the Twenty Year Club.
is renowned for its high-quality workmanship.                                                                   Our family is very grateful for the many dedicat-
John is very valuable in that he can repair and                                                                 ed employees that we have at State Line.”
refinish any project that comes along.
                                                    (L to R): Beth Barber Fedorchak, SLAA Owner; Jeff Barber,   A ceremony took place before the sale on Friday,
Our shop is comprised of a very responsible,        SLAA President and Owner; John Williams; Paul Barber,       July 2. John received his 20-year solid brass
mature group of technicians, and John has           SLAA Owner; and Emily Barber, SLAA Owner.                   ship’s clock. This is a tradition for each employee
been a big part of our success. It is always a                                                                  to reach this important milestone at SLAA. “Our
pleasure to walk through the body shop and                                                                      family congratulates John on reaching his 20th
admire their expertise.”                                                                                        anniversary at SLAA.”

16   | NAAA ON THE BLOCK SEPTEMBER 2021                                                                                                            www.naaa.com
AUCTION NEWS

                                        Commentary: Inventory Isn’t the Only Challenge
                                        in Automotive Right Now
                                        By Joe Kichler, Vice President, Manheim Logistics

                                                       the trends and solving the issues facing dealers           the recipe for logistics challenges keeps getting
                                                       and transporters today.                                    more complicated.
                                                       One of the biggest challenges with vehicle logistics       In 2021, we’ve seen the average distance of
                                                       right now is the smaller supply of carriers. Unlike        vehicle moves by dealers double, going from 225
We find ourselves right in the middle of one of        in the freight space, where large transportation           miles in Q1 2020 to 455 miles on average in Q1
the most unusual automotive markets any of us          companies account for much of the business,                2021 and hitting 500 average miles in Q2 2021.
can remember. Inventory shortages on the new           vehicle logistics companies are typically smaller          And a lot of the moves are smaller loads, with
and used car sides, along with the correspond-         “mom-and-pop shops” with less than five                    one or two vehicles per order, challenging carriers
ing price increases, have been dominating              vehicle carriers. Low volumes in the early part            to build full loads and efficient routes. So that
the headlines. However, there’s one area that’s        of the pandemic drove many of these shops out              means that the cost of transporting vehicles is
been deeply affected by COVID-19 that hasn’t           of business, and most of those haven’t returned.           higher, and the time it takes for vehicles to get to
gotten a lot of ink: the cost and time it takes to     While many of the larger transportation com-               their intended locations is lengthening.
transport vehicles.                                    panies are attracting more drivers with higher
                                                                                                                  Top all of this off with higher diesel prices, which
                                                       wages, most of that talent is going to freight
Finished vehicle logistics is an integral part                                                                    have increased more than 35% in the last year,
                                                       shipping/consumer goods since the driver’s
of the automotive ecosystem. In this case,                                                                        and you can see why inventory shortages aren’t
                                                       job is easier when delivering packages instead
finished vehicle logistics refers to getting                                                                      the only challenges in automotive right now.
                                                       of vehicles.
new vehicles from manufacturers to dealer
lots, as well as moving used vehicles between                                                                     All of this is happening when volumes are sup-
                                                       Another major challenge is that the cost of
dealerships and wholesale auction locations,                                                                      pressed because of the larger factors in the market,
                                                       transporting vehicles has noticeably increased.
touching nearly two-thirds of all wholesale                                                                       which is why Manheim Logistics is working hard to
                                                       This is due to the limited carrier supply and
transactions. At Cox Automotive, our Manheim                                                                      solve for them through digitizing the vehicle logis-
                                                       higher (though still lower than average) volumes
Logistics team touches approximately 10 million                                                                   tics process in partnership with DHL. We’re building
                                                       of vehicles that need to be transported right now.
used vehicle moves each year between our                                                                          technology that can help transporters build fuller
                                                       Add in the fact that short supply in the used car
Ready Logistics and Central Dispatch brands.                                                                      loads and better routes, so they can move more
                                                       market is driving dealers to buy vehicles from
And because of this, we’re deep into analyzing                                                                    cars, more cost-effectively – and help keep dealer
                                                       farther away via digital wholesale channels, and
                                                                                                                  and auction lots stocked to meet demand.

  Manheim Express Users Create Over One Million 3D Vehicle Images with Fyusion Technology
Fyusion, which enables the creation of high            “3D images from Fyusion have been a critical part          pictures from any angle and zoom in to see that
resolution, optimized 3D images with deep AI           of the success of Manheim Express,” said Zach              our vehicles are truly front-line cars.”
understanding, today announced it has surpassed        Hallowell, senior vice president of Manheim Digital.
one million 3D car images created for Manheim          “Armed with a 3D, high-res walkaround, along with          With over 150 patents, Fyusion is a global leader in
Express, a digital app for auto dealers to buy         a full condition report for each vehicle, buyers can       AI-driven 3D imaging. The company’s technology
and sell wholesale inventory on demand. Sales          make well-informed decisions for their businesses          enables 3D images to be captured from common
through Manheim Express have grown signifi-            in just a few clicks. This has enabled Manheim             smartphones without any special training. The
cantly over the last year, increasing approximately    Express to remain a vibrant, always-on digital mar-        image capture is then run through Fyusion’s
230% from 2020-2021.                                   ketplace that helped our industry thrive throughout        AI engine, ALIS, which can do everything from
                                                       the recent market swings.”                                 smoothing out shaky camera work to creating
Launched in 2018, Manheim Express helps dealers                                                                   seamless moveable images and 360s.
remarket trade-ins and aged inventory without          In fact, Sam Samarghandi, Buyer at Nexcar in Houston,
the car having to leave the dealer lot. Dealers can    Texas, is a big fan of how Manheim Express gives him       “Surpassing one million 3D car images created by
choose to capture the vehicle themselves using the     an extra boost of confidence in his digital purchases,     Manheim Express customers is a huge achieve-
app, or have the vehicle imaging and condition         as well as how it enables him to showcase inventory        ment both for Fyusion and for the entire team
report created by a trained Manheim Express            his dealership sells through the app.                      at Manheim Digital,” said Radu Rusu, CEO and
Concierge specialist using the same Fyusion-                                                                      cofounder of Fyusion. “It is a testament not only to
                                                       “When I buy a car from Manheim Express, the 360            the engineering behind Fyusion’s products, but also
powered technology.
                                                       images and descriptions give me a good idea of the         to their scalability for the world’s largest automotive
Buyers on Manheim Express enjoy an interactive,        overall condition of the vehicle. I really like how the    applications.”
lifelike 3D image of each vehicle, with rich detail    360s let me zoom in and look at any damages up
provided by audio and visual tags. These images        close. We truly get the whole picture of the vehicle’s     Fyusion has worked with Manheim, a Cox Automo-
are created in a matter of minutes through a simple    condition. And the same is true when we’re selling         tive subsidiary, and other Cox Automotive compa-
vehicle walkaround using common smartphones.           through the app. Other dealers can look at our             nies for over four years. In January 2021, Fyusion
                                                                                                                  announced its acquisition by Cox Automotive.

www.naaa.com                                                                                                     SEPTEMBER 2021 | NAAA ON THE BLOCK |                17
MEMBER MESSAGE

I LOVE THIS BUSINESS
                        To my core, since I started      I don’t know about you, but the thought of
                        checking in cars in Febru-       switching industries never really crosses my
                        ary, in Chicago, – repeat,       mind. Most of us in remarketing have been in it
                        in February, in Chicago–I        for a long time. Most of us started early, and I bet
                        have loved this business.        most of us love this business.
                        This was 23 years ago. I
                                                         We are all hiring. Everyone is hiring. How do we,
                        had a buddy, his name
                                                         as employers, attract and retain the best talent
By Dan Diedrich         was Jimmy, and he intro-
                                                         out there? Personally, I think it starts with a love
CEO, Auction Edge, Inc. duced me to Buzz Cotton,
                                                         for our business. It continues with a love for our
                        and Buzz hired me that
                                                         people and a commitment to helping them go
week “to do some computer stuff.” Apparently,
                                                         from washing cars or filling out titles to wherever
computer stuff meant scraping ice off of cars
                                                         they want to go, professionally and otherwise. So
and talking on a headset reading VIN numbers
                                                         as we look to attract people to our business, we
to someone in a nice warm office. But Buzzy, to
                                                         need to show them why we love it and why they
whom I still look up, said that computer stuff
                                                         will love it.
didn’t mean anything if I didn’t understand the
work being done. Wise man, that Buzzy.                   I still pop into Chicagoland Independent Auto
                                                         Auction from time to time. It was Dyer before
If you are reading this, odds are you love this
                                                         Jason Cotton took over this year. Sorry Jason,
business too, and you should. So what is the
                                                         but it will always be Dyer to me. There are
point, Diedrich? I’m getting there.
                                                                         new faces there, but mostly it is
95% of workers said they were                                            still faces that I know and have
                                                                         known for literally decades. These
thinking of quitting their jobs,                                         are faces that love our business,

according to a recent Monster.com
                                                                         faces that love our customers.         If 92% of workers might
survey. 92% said they would
                                                                        In my 23 years, I have been bless-
                                                                        ed to work with, and for, some
                                                                                                                leave their industry, I
consider switching industries                                           incredible people, virtually all of
                                                                        whom are still doing what they
                                                                                                                know of one industry that
altogether.                                                             love, remarketing cars.                 they will love. Do you?

     Pleased to Exhibit                                    Submitted By Auction Streaming

     Auction Streaming, a subsidiary of Webxloo LLC, will exhibit at the 2021 NAAA Convention –
     The Reconnection Event.
     Looking to the future of automotive wholesaling and responding to changing customer needs, Auction
     Streaming is geared up to celebrate the 2021 NAAA Reconnection Event, September 28-30.
     “Over the past 18 months, we have recognized the strength and resilience of our industry and its
     people. At Auction Streaming, we’re excited to participate and exhibit at such a major industry gath-
     ering, especially with it returning as the long-awaited in-person event. We will continue investing in
     auction management software delivering a smoother experience for our clients and their clients,”
     said Auction Streaming founder and chief executive officer David Vahman.
     “2021 NAAA Convention – The Reconnection Event is a great opportunity to evaluate the commitment
     our team members make every day to each other, our clients, our marketplace, and our industry,” said       October 15, 2021 - 8am CT
     Joe Kramer, senior vice president of Auction Streaming.
                                                                                                                   at Manheim Dallas
     “We are pleased to exhibit at the 2021 NAAA Convention – The Reconnection Event to meet fellow
     industry innovators and together improve the auction experience for many auto dealers, embrace a
     new wave of digital transformation to buy and sell cars and appreciate the immense value that auto          More information: Paul C. Behr
     auctions provide,” Vahman continued.
                                                                                                                        303-807-1108 or
                                                                                                                 www.autochampionship.com

18    | NAAA ON THE BLOCK SEPTEMBER 2021                                                                                              www.naaa.com
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