Wednesday, November 20, 2013

MANHEIM CREATES JOINT VENTURE WITH DRIVETIME

ATLANTA – Manheim announced today the creation of Go Auto Exchange, LLC - a new joint venture with DriveTime, the nation’s largest subprime credit used car dealer.  This partnership creates a separate, independent wholesale auction company focused on independent dealers and the low-end vehicle segment.  Go Auto Exchange will establish locations this year in Atlanta, Ga. and Phoenix, Ariz., and plans to expand to other key markets in 2014.     

Tim Janego will serve as President of Go Auto Exchange. Janego, who most recently served as Manheim Regional Vice President for the East Region, brings broad experience and deep expertise in the wholesale auction industry.  He will work closely with teams from Manheim and DriveTime to have the new locations open by the end of the year.

“Tim’s extensive background in the wholesale auction industry made him a perfect fit to lead this exciting new business,” said Manheim SVP and CFO, Joe Luppino. “Go Auto Exchange will benefit from Tim’s deep operational experience in running wholesale auctions and from DriveTime’s inventory and deep knowledge of this growing market segment.”  

Go Auto Exchange and its locations will operate independently from Manheim and DriveTime locations.  The company will be headquartered in Atlanta and plans to add locations in early 2014.

“As Manheim’s business today focuses on serving many different customers, Go Auto Exchange’s focus will be exclusively on the low-end vehicle segment in local markets,” said Janego.  “Our highly-targeted approach allows us to concentrate solely on growing this segment, while allowing us to aggressively compete.”

Go Auto Exchange plans to hire a combination of auction pros and industry experts to run its locations.  In addition, the company will partner with NextGear Capital to offer vehicle financing options to independent dealers.  Go Auto Exchange will share more details in the weeks ahead.

“We’ve been a long-time Manheim customer, and this new arrangement with them is a result of our close collaboration and identifying what our mutual customers need and want to succeed,” said DriveTime Chairman Ernie Garcia.  “Manheim’s success with wholesale auto auctions and our deep knowledge of the low-end vehicle market and independent dealers is a perfect match.”

About Manheim (www.manheim.com)

Manheim is the leading global provider of vehicle remarketing services, connecting buyers and sellers of used vehicles to the largest wholesale used-vehicle marketplace.   The company helps dealer and commercial customers achieve results by providing physical and digital auction channels, data analysis, financing, transportation and mobile products and solutions.

Manheim pioneered in-lane vehicle auctions and has been an innovator in both digital and mobile auction platforms.  Manheim registers nearly 8 million used vehicles annually, facilitating transactions representing more than $50 billion in value.  Manheim’s research and consulting arm, Manheim Consulting, provides industry-leading market intelligence and publishes the widely recognized annual Used Car Market Report.  The company offers dealer financing though NextGear Capital, Inc., and transportation services through Ready Auto Transport.

Headquartered in Atlanta, Manheim has more than 20,000 employees in 106 worldwide sites and generates annual revenues of more than $2.5 billion.  A subsidiary of Cox Enterprises, Manheim participates in “Go Green with Manheim,” the company’s sustainability program.

About DriveTime
DriveTime is the nation’s largest dealer helping people with credit issues find and finance their perfect vehicle. Headquartered in Phoenix, Arizona, DriveTime currently operates 108 stores in 47 markets, with more than 75 used cars available at each dealership. The company has sold more than 600,000 used cars to consumers of all credit types since 2002. For more information about DriveTime Automotive Group or the company’s used car dealerships, please visit www.drivetime.com or call the customer service line at 1-888-418-1212.

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