Automotive News - October 27, 2008 - (Page 26) 26 • OCTOBER 27, 2008 remarketing Average wholesale used-vehicle prices, September Average price September 2008 Average price August† 2008 Average price September 2007 % % change change vs. vs. August† September 2008 2007 Cars Small and midrange Sporty Traditional Upscale Total car Light trucks Small pickups Full-sized pickups Minivans Full-sized vans Lower midrange SUVs Large SUVs Other SUVs Total light truck TOTAL WHOLESALE $8,563 12,102 6,479 13,428 $9,217 $6,978 9,834 6,710 7,506 9,230 10,507 14,165 $9,839 $9,540 $8,821 12,708 6,534 13,394 $9,496 $7,045 9,620 6,967 6,814 8,907 9,902 13,893 $9,605 $9,572 $7,924 12,903 8,876 13,865 $8,858 $7,285 11,671 7,702 8,816 10,441 12,906 15,129 $10,913 $9,849 –2.9 –4.8 –0.9 0.3 –2.9 –0.9 2.2 –3.7 10.2 3.6 6.1 2.0 2.4 –0.3 8.1 –6.2 –27.0 –3.2 4.1 –4.2 –15.7 –12.9 –14.9 –11.6 –18.6 –6.4 –9.8 –3.1 Auctions offer more online for just-in-time dealers Arlena Sawyers asawyers@crain.com Lining up Manheim and ADESA, the nation’s 2 largest auto auction companies, are expanding online. Manheim ■ 85 U.S. auction sites ■ Handled 10 million units in 2007 ■ Online properties: Manheim.com, OVE.com, Simulcast Source: Companies Note: Based on approximately a half-million AuctionNet wholesale-vehicle transactions a month †August revised *Includes standard and premium crossovers and small, upper midrange and premium SUVs Source: ADESA Analytical Services based on AuctionNet data and Automotive News market classifications Used-truck prices higher in September But average trails year-ago month Arlena Sawyers asawyers@crain.com Wholesale prices of large used trucks rose last month from August prices. But those prices remained far below where they were last year, according to the nation’s two largest auto auction companies. In September, used full-sized pickups sold at auction for an average of $9,834, ADESA Inc. reported. That average price was 2.2 percent higher than in August 2008 but 15.7 percent below the September 2007 average. Last month’s average wholesale price of used large SUVs was $10,507 — 6.1 percent higher than in August but 18.6 percent below the year-ago month, ADESA said. The overall used-vehicle market continues to suffer from declining retail sales, said Tom Kontos, ADESA’s executive vice president of customer strategies and analytics. Citing data from CNW Marketing Research, Kontos said retail used-ve- hicle sales by franchised dealers fell 18.7 percent last month from September 2007. Because of credit constraints and poor sales, Kontos said, many dealers are unwilling or unable to add to their carrying costs for used-vehicle inventory. Last month the average price of all vehicles sold at auction was $9,540. That price was 3.1 percent below the September 2007 average price and 0.3 percent lower than in August 2008. The average wholesale price of small and midrange cars last month was $8,563 — 2.9 percent lower than in the previous month but 8.1 percent higher than in the year-ago month. Manheim chief economist Tom Webb said he expects credit standards to remain tight. But he said used-vehicle purchases tend to be more stable than purchases of new cars and trucks because used sales are more likely to be based on buyers’ immediate needs. In an online commentary, Webb wrote, “There is usually some migration from buying new to buying used in times of a weak economy.”c A year ago, Bill Wallace’s dealership group would have kept 45- to 60-day supplies of used vehicles on its lots. Now those supplies are 30 to 45 days. Wallace says each of his 13 dealerships maintains a core of good, clean used vehicles. Otherwise, he says, his Stuart, Fla., company buys used cars and trucks only as needed. “With the market vacillating the way it has, it just makes more sense to be conservative,” Wallace told Automotive News. To keep up with rapid shifts in consumer demand, he says he is buying more used vehicles online. He identifies Manheim’s OVE.com as one of his favorite marketplaces. Manheim and ADESA Inc., the nation’s largest auto auction companies, are responding to a growing trend among dealers of just-in-time buying and selling of used vehicles. Though Web sales aren’t new, both companies say they are upgrading their technology and broadening their online offerings and customer bases. Over the past year, says Manheim President Dean Eisner, OVE.com has expanded to include independent auctions. OVE.com also conducts free classes for dealers who want to sharpen their online buying skills. “Dealers are buying product when they have a customer sitting in front of them who needs the product,” Eisner says. “You can’t have a sale physically every day, but you can have a sale 24/7 online.” Eisner says online sales never will replace physical auctions. Manheim operates 85 U.S. auction sites, five sites in Canada and 55 in other countries. Eisner notes that by the end of this year Manheim will have sold its 3 millionth ve- ADESA ■ 47 U.S. auction sites ■ Handled 3 million units in 2007 ■ Online properties: LiveBlock, DealerBlock, private labels hicle online since it began Internet sales in 1996. Manheim also operates Manheim.com, which helps dealers find vehicle listings for its physical auctions. Manheim’s Simulcast program lets dealers participate in physical auctions from remote locations. Like Manheim, ADESA is strengthening its online presence. Its parent company, KAR Holdings Inc., wants ADESA and its salvage auction subsidiary, Insurance Auto Auctions, to become “the biggest seller of vehicles electronically in the world,” says ADESA President Jim Hallett. By year end, ADESA plans to integrate its LiveBlock online sales channel with all 62 of its North American auction sites. About three-fourths of ADESA’s auction lanes are wired for LiveBlock. ADESA also operates DealerBlock, a 24-hour Web sales network. The company provides private-label auction Web sites for several automakers.c Lack of used Minis limits certified program Arlena Sawyers asawyers@crain.com Mini USA expects to sell more than 2,000 certified used vehicles this year — twice as many as in 2007. But executives say the Mini Next certified program is hurt by a shortage of vehicles. Stephen Saward, sales manager of Mini USA, said the brand benefits from renewed consumer interest in small, fuel-efficient cars. At the same time, he said, Mini owners tend to pass their cars on to family members or sell the vehicles themselves. That limits the number of vehicles the Mini Next program can certify, he said. Saward told Automotive News: “Our new-car availability is so tight, I think our dealers have figured out that Mini Next, even if they have to work a little harder than usual to find some used Minis, is a tremendous sales opportunity.” Last month, Mini sold 175 certified vehicles, 118.8 percent more than in September 2007. In the first nine months of 2008, Mini sold 1,482, up 99.5 percent from the year-ago period. The industry sold 124,547 certified used cars and trucks last month, down 8.9 percent from September 2007. Through September, the industry sold 1,305,745 certified used vehicles, up 1.5 percent from the year-ago period. Mini’s 82 dealers get used vehicles to certify from trade-ins, end-of-lease turn-ins and retired service loaners, Saward said. The brand does not sell vehicles to rental fleets. Louis Cohen, a Mini dealer in suburban Baltimore, expects to sell about 650 new Mini microcars and 100 certi- fied used Mini vehicles this year. He said it isn’t easy to persuade owners to trade in their vehicles: “They drive them, they enjoy them and they become attached to them.”c Turn to page 28 for the Used Vehicle Auctions ENTER A BID WHEN YOU WANT TO. EVEN IF YOU’RE IN BUTTE, BANGOR OR BOSTON. Wherever you are, you can fill your inventory 24 hours a day, 7 days a week just by clicking on ADESA.com. Give it a try and see just how easy it is. ©2008 ADESA, INC. Log on to DealerBlock today. http://www.Manheim.com http://www.OVE.com http://www.OVE.com http://www.Manheim.com http://www.OVE.com http://www.OVE.com http://www.ADESA.com http://www.ADESA.com
Table of Contents Feed for the Digital Edition of Automotive News - October 27, 2008 Chrysler dealers under GM? States would rule Survey: Worried dealers flee GMAC Va. dealers turn to local credit unions Anxiety over Chrysler: Deal or no deal? Ford, GM execs join panels looking at eco-friendly options Big pickups, SUVs gain share Chrysler will cut 4,300 salaried jobs by year end BMW seeks joint vehicle electronics effort Runkle: Give tiny suppliers a chance VW goal: 80% N.A. content for Tenn. plant April Wortham China's BYD plans U.S. hybrids Lucky Icahn lost Lear Mahindra's U.S. launch to get $60 million ad drive Toyota may renew no-interest loans Hesterberg, Thomson will address congress Desperate industry begs feds for help Hyundai dealers want ads to pitch favorable loans Toyota, GM top global r&d spending After Detroit 3 take back design, supplier sitting pretty Germany's Preh supplies F-150 ventilation part Buehler is Volt supplier Freescale: New infotainment chip Are they too big to fail? A goal for GM: Buy back full control of GMAC Tax credit would move domestic cars GMAC loan bonus is a bad idea Take a good look: Toyota is losing its halo What flexibility is and what it isn't Toshiba joins battery battle Personnel Hyundai slows Ala. output of Sonata, Santa Fe Picture this LaNeve: GM marketing budget faces '09 hit Hyundai counts on luxury, hybrid hopes Keogh: Audi belongs with top luxury brands Dealers Court overturns class-action status in Blue Oval suit 2 major lemon-law lawyers lose right to practice in Md. Auctions offer more online for just-in-time dealers Used-truck prices higher in September Lack of used Minis limits certified program Wood trim maker expects to avoid worst of woes VW: U.S. may get Scirocco after all Ford's new F-150 is built for jobs, not jaunts Think of it as GPS for tools Feds look at China-made valves on Ford tires Shareholder value tumbles in 3rd quarter Shareholder value tumbles in 3rd quarter Ford truck marketing exec: Hybrid pickup 'publicity stunt' Survey: Ford Motor reliability improves Chrysler heir: Get back to basics Farley has bright idea to boost auction action Kerkorian speeds away from autos Names familiar? NADA leadership is a family affair Mitsubishi bucks trend on profits New trade debate in the works? Beware the 'vital' deal Automotive News - October 27, 2008 Automotive News - October 27, 2008 - (Page Intro) Automotive News - October 27, 2008 - (Page Bellyband1) Automotive News - October 27, 2008 - (Page Bellyband2) Automotive News - October 27, 2008 - Va. dealers turn to local credit unions (Page 1) Automotive News - October 27, 2008 - Va. dealers turn to local credit unions (Page 2) Automotive News - October 27, 2008 - Chrysler will cut 4,300 salaried jobs by year end (Page 3) Automotive News - October 27, 2008 - VW goal: 80% N.A. content for Tenn. plant April Wortham (Page 4) Automotive News - October 27, 2008 - VW goal: 80% N.A. content for Tenn. plant April Wortham (Page 5) Automotive News - October 27, 2008 - Hesterberg, Thomson will address congress (Page 6) Automotive News - October 27, 2008 - Hesterberg, Thomson will address congress (Page 7) Automotive News - October 27, 2008 - Toyota, GM top global r&d spending (Page 8) Automotive News - October 27, 2008 - Toyota, GM top global r&d spending (Page 9) Automotive News - October 27, 2008 - Freescale: New infotainment chip (Page 10) Automotive News - October 27, 2008 - Freescale: New infotainment chip (Page 11) Automotive News - October 27, 2008 - GMAC loan bonus is a bad idea (Page 12) Automotive News - October 27, 2008 - GMAC loan bonus is a bad idea (Page 13) Automotive News - October 27, 2008 - What flexibility is and what it isn't (Page 14) Automotive News - October 27, 2008 - What flexibility is and what it isn't (Page 15) Automotive News - October 27, 2008 - Hyundai slows Ala. output of Sonata, Santa Fe (Page 16) Automotive News - October 27, 2008 - Picture this (Page 17) Automotive News - October 27, 2008 - Picture this (Page 18) Automotive News - October 27, 2008 - Picture this (Page 19) Automotive News - October 27, 2008 - LaNeve: GM marketing budget faces '09 hit (Page 20) Automotive News - October 27, 2008 - Hyundai counts on luxury, hybrid hopes (Page 21) Automotive News - October 27, 2008 - Keogh: Audi belongs with top luxury brands (Page 22) Automotive News - October 27, 2008 - Keogh: Audi belongs with top luxury brands (Page 23) Automotive News - October 27, 2008 - Dealers (Page 24) Automotive News - October 27, 2008 - 2 major lemon-law lawyers lose right to practice in Md. (Page 25) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 26) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 27) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 28) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 29) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 30) Automotive News - October 27, 2008 - VW: U.S. may get Scirocco after all (Page 31) Automotive News - October 27, 2008 - Feds look at China-made valves on Ford tires (Page 32) Automotive News - October 27, 2008 - Ford truck marketing exec: Hybrid pickup 'publicity stunt' (Page 33) Automotive News - October 27, 2008 - Ford truck marketing exec: Hybrid pickup 'publicity stunt' (Page 34) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 35) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 36) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 37) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 38) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 39) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 40)
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