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No one should live their life in fear, simply because of the color of their skin.

OUR FULL STATEMENT x

latest COVID-19 BUSINESS UPDATES

This summary of information related to the Cox Automotive response to COVID-19 will be updated regularly as the situation evolves.

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COVID-19 Cox Automotive Updates

With health and safety as our top priority, the Cox Automotive family of brands is also committed to partnering with clients to keep the automotive marketplace up and running. In the interest of staying connected with our partners and clients, real-time updates on business operations for each of our brands can be accessed below.

OPERATIONS UPDATES

Over the past few weeks, we’ve seen states, businesses and our own operations begin to reopen. For us and our clients, this has been both promising and challenging, especially as pandemic levels remain unstable. At Manheim, our teams are working hard to welcome clients onsite to preview vehicles, helping them find vehicles on our lots, and preparing them to safely join in-lane bidding. Manheim now offers in-lane bidding at 30 pilot sites, with 13 of those locations added this week. We are truly pleased to begin offering the type of access that our clients have asked for and appreciate their patience and support of our safety policies and protocols.

Throughout this time period, we’ve seen strong resale values, a record increase in vehicle and transport demand, and dealer adoption of our digital platforms that continues to climb. For example, at Manheim Pennsylvania for the week ending June 19, dealers bought 8,200 of the approximately 10,000 vehicles offered for sale via digital channels. These historic results topped their combined physical and digital sales performance from the same period a year ago. And, at Manheim St. Pete, weekly sales are experiencing an unprecedented 450 Simulcast buyers per lane.

Learn more

Since my last update, I’m happy to report that we are continuing to experience positive signs of growth, including significant demand for used vehicles and record participation on our digital platforms. Recently, nearly 20,000 vehicles were sold on Simulcast in a single day, and OVE saw an 81% increase in sales in one week. As a result, we are bringing back hundreds more of our furloughed team members to support rising client needs.

While our industry adapts to the changes brought on by COVID-19, two areas that remain critical to success are transparency and efficiency. For Manheim, transparency is about ensuring that vehicle information – such as condition reports and images – is accurate, consistent and actionable. This cannot be overstated, especially as more business is conducted sight unseen. And, as the speed of business accelerates, we believe it is more important than ever that both our physical and digital interactions are as efficient as possible to help drive better performance for us and our clients. Examples of these commitments in action are our Manheim Express app, collaborative Market Center structure, and Ready Logistics transportation status tracker. We will continue to invest in these and other areas to enrich the digital auction experience for clients.

Learn more

Earlier this month, we made what is undoubtedly the most difficult decision in Manheim’s 75-year history: furloughing 9,000 of our U.S. team members. While we hoped to avoid this decision, sharp declines in vehicle transactions and a required move to an all-digital format made it necessary.

Thankfully, we are beginning to see early signs of economic recovery, including increased sales activity and the easing of restrictions in all 50 states. We’re also experiencing an uptick in reconditioning requests, which has made it possible to bring back more than 300 of our furloughed team members. As business conditions continue to improve, we plan to recall even more furloughed employees.

In addition, with our lots at full capacity, Manheim locations have begun providing access for clients to preview inventory on a limited basis. To date, two-thirds of our locations are participating with expanded viewing days and times while maintaining strict safety and compliance protocols. Also, our Lot Vision wireless tracking technology is in place at 13 locations – with plans to double that number by year’s end – adding greater efficiency to the previewing process where available. Client feedback has been very positive.

We fully appreciate that our move to an all-digital auction operation has been a significant adjustment for clients, from buying on Simulcast and paying for vehicles online to using our Remote Seller tool to rep vehicles. We also realize that we can do even more to provide the vehicle information necessary to instill buyer confidence through our condition reports and imaging. In response, Manheim is accelerating our investment in these areas with plans to roll out key enhancements in the coming months. Additionally, working closely with our clients, we are exploring other ways to continue improving the digital auction experience.

As companies across the country and within our own industry begin to reopen, we are seeing varying methods for returning to business. At Manheim, our approach is guided by CDC guidelines; informed by Cox Automotive’s pandemic data; and driven by our core values to always do the right thing for our team members, clients and communities.

As state and local directives allow, we will continue to adjust our operations to make it more convenient for our clients to conduct business. Should further COVID-19-related developments alter our plans, we will adapt accordingly.

Learn more

Last week I shared that NextGear Capital would be extending our dealer relief package through the end of the month and as promised, I’m following up today about what’s next. It is impossible to fully plan for a crisis like this, but I assure you my team and I are doing all that we can to monitor the situation and make real-time decisions that best support our dealers.

We deferred more than 160,000 payments for our dealers in the first 30 days of our relief program, proudly providing our customers with assistance when it was most needed. It is my genuine hope that we can continue to positively impact you and the communities you serve.

As we considered the second wave of relief, it was important to my team and me that we delivered more of what truly mattered to you. While suspension of certain fees was appreciated, we understand that deferred Curtailment and Extension payments were key to mitigating pressures on your cash flow and business during this crisis.

With that said, while NextGear Capital’s original dealer relief program will expire April 30, 2020, NextGear Capital will, from now until Sunday, May 31, 2020, leave the Base Rate reduction in place and continue to defer Curtailment and Extension payments for eligible Floorplan Advances, for all NextGear Capital dealers in good standing. We will continue to monitor this crisis and are committed to supporting our clients through this time.

Please continue reaching out to your Portfolio Manager with any needs or questions you may have. Best wishes for continued safety and health for you, your families and employees.

Scott Maybee
President, NextGear Capital

It’s been four weeks since I shared NextGear Capital’s dealer relief package in response to COVID-19’s dramatic impact on our industry. Since that time, we’ve witnessed this virus continue to impact our families, communities and our very way of life.

Our leadership team remains committed to providing support for our dealers during this crisis. Although these are trying times for us all, I am optimistic that we will thrive once again. With that said, I am extending our relief package originally set to expire on April 22 through the end of the month for all NextGear Capital dealers in good standing.

As a reminder, those benefits included the following:

• Deferred Curtailment & Extension payments for Eligible Floorplan Advances
• No Late Fees
• No Collateral Audit Reconciliation Fees
• No First Extension Fees
• No Full or Partial Waiver Fee tied to Curtailments or Extensions
• No Collateral Audit Fees

Dealers now have two full weeks to continue benefitting from our original relief package while we hammer out details on what a second wave of relief looks like. You have my word that you will hear from me again by next Friday, April 24, with more details.

While I understand economic assistance is appreciated, I also recognize it’s only one of the ways we can support our dealers right now. For example, businesses and consumers alike are being inundated with messaging related to COVID-19 and it’s difficult to cut through the clutter. Because of this, NextGear Capital is launching a COVID-19 Dealer Resource Hub that aggregates all of the most important resources and information in one place. On that topic, if you haven’t registered for Dale Pollak’s webinar focused on managing and sustaining business through the current crisis, I would encourage you to do so. You can sign up for free here.

Please continue reaching out to your Portfolio Manager with any needs or questions you may have and know that our entire organization has you in our thoughts.

Scott Maybee
President, NextGear Capital

Click here for the latest Manheim COVID-19 Details

Due to ongoing public health concerns and the safety of all involved, Manheim’s Logistics businesses, Ready Logistics and Central Dispatch, are assessing and making changes daily to help our team members and clients during this time. Read more.

Due to ongoing public health concerns and the safety of all involved, Manheim is assessing and making changes daily to help our team members and clients during this time. Here are the latest updates:

COVID-19 Health and Safety Priority: Manheim U.S. has over 76 locations and thousands of team members across the country. There have been a few confirmed COVID-19 cases among team members or their families. We are doing all we can to support the affected employees and their families. We have transformed to Simulcast-only sales across the country, closed a number of locations, drastically limited access to others and reduced our on-site functions to essential operations only. We are taking every precaution to clean and sanitize the workplace to reduce spread of the virus as recommended by the CDC and public health officials, including carefully following current physical distancing mandates for each location.

Status of Location Operations: Due to mandatory health regulations and state ordinances in response to COVID-19, the status of many of our Manheim locations is changing daily. Here is a list of locations impacted and their current operational status.

COVID-19 Policy Updates:In the event that a Manheim auction or offsite location (i.e. dealership or storage location) is closed and vehicle pickup/checkout is not possible, all OVE, Manheim Express and Private Store purchases made in the 72 hours prior to location closure and not yet picked up may be unwound upon the submission of an arbitration request by the buyer. OVE, Manheim Express and Private Store vehicles purchased more than 72 hours prior and not yet picked up will be considered sold. This does not apply to non-Manheim Auction facilitated listings (i.e. Independent Auction listings).

Please note: All buyers, sellers and their agents are responsible for adhering to any national, state and local restrictions on business operation, which may include participating in wholesale transactions and which may impinge or hinder access to vehicles. This may include activities related to selling, purchasing or transporting vehicles.

Manheim Concierge services: The Concierge team members will be engaging only with the vehicle and manage appointment follow-ups virtually. Additionally, they will be maintaining a distance of 6 feet from all other individuals.

Simulcast-Only Sales: Manheim will continue running Simulcast-only sales as scheduled if local ordinance permits. If a U.S. location is not currently closed, it is running Simulcast-only sales as a postcard sale – with vehicles shown as images only. We will not be running cars down the lane at any Manheim U.S location.

Read more

A message to our dealership friends

These are uncertain times, but we’re in this together. We remain committed to your fixed operations business needs and are here to partner with you on a safe solution. There’s never been a better time to support your customers with a white glove service experience that is safe and convenient.

In response to the COVID-19 situation, Clutch Technologies is offering Service Pickup & Delivery software at no cost through July 2020 to enable you to continue to drive service revenue and pick up customer vehicles for service. Our team is committed to providing a fully remote, simple implementation in three business days to get you up and running quickly. Learn more about Service Pickup & Delivery and how you can sign up.

Whether you’re an existing Clutch partner or not, we’re here to help. You are in our thoughts and you have our support.

Best,

Alan Powell
SVP Sales, Clutch Technologies

Vince Zappa
President, Clutch Technologies

A message to our clients and partners:

We hope that you, your families and your team members are safe and well. At RideKleen, we’ve been hard at work responding to COVID-19 – adjusting our solutions and operations so that we can continue to deliver safe and exceptional vehicle care for our customers and team members.

As a result, we’re excited to announce RideKleen Vehicle Surface Disinfection & Air Cleanse Services in response to COVID-19.

• We’re now able to disinfect vehicles with an EPA-approved, hospital-grade disinfectant designed to kill up to 99.9% of bacteria and viruses, including coronavirus.

• We will begin treating in-vehicle air with a hygienic vapor to help remove contaminants, odor and pollutants and reach places that sprays and wipes cannot, including vehicle ventilation systems.

• In partnership with Clutch Technologies, we’re expanding our solution to enable dealers to deliver treated vehicles to their customers. Dealers using the Clutch Technologies platform for Retail Delivery & Service Pickup and Delivery will have access to our disinfecting & cleansing solutions – beginning in Atlanta and rapidly expanding to other markets.

• With employee safety as a priority, RideKleen will follow a rigorous operational process and provide safety training for its team members consistent with the guidance for cleaning and disinfection provided by the Centers of Disease Control and Prevention (CDC).

Whether you are a fleet owner, dealer, rideshare driver or first responder, our goal is to make these services available to you so that you can provide safe, clean vehicle experiences for your customers. While the situation we face today accelerated the launch of our Surface Disinfection & Air Cleanse Services, they will become a regular part of our daily operations moving forward – staying true to our commitment to safe and exceptional vehicle care. Visit our website to learn more.

Thank you for your partnership and support as we navigate this challenge together. We’ve no doubt that we’ll all be stronger and better than ever before on the other side.

Pratik Patel
President & Founder, RideKleen

A message to our clients

As we all navigate this unprecedented time, we are here to partner with you on a personalized plan that drives results for your business. With our 500+ sales team members across the country and in your local area, we are committed to working side-by-side with you on a solution that helps you through this time.

Your local sales representative will reach out shortly to review the tools and services we are providing to support you, if you haven’t already started those discussions. In addition, our product team is actively working on new ideas to help support dealers and consumers in a new virtual world.

Please view this brief video for more details, as well as some quick tips for connecting with car buyers.

You and all those impacted by COVID-19 are in our hearts and minds. Cox Automotive is committed to the safety and well-being of our employees and customers – so we are prepared to fully support you from afar.

Sincerely,

Jessica Stafford

SVP & General Manager, Autotrader

Dear Client,

Cox Automotive is committed to the safety and well-being of our employees, clients and communities. As mentioned in an earlier statement, the situation with COVID-19 is extremely fluid. We are evolving strategies to support our team members across the country and enable them to provide you, our clients, with ongoing service and support with as little disruption as possible. As we navigate this unprecedented time, we are here to partner with you on a personalized plan that drives results for your business.

In order to keep our team members and clients safe, we are beginning the transition of all field-based team members to a virtual work environment. Cox Automotive has equipped our teams with an array of tools to ensure we stay connected to our partners and clients.

Cox Automotive is committed to sharing our latest insights in this fast changing environment. We will also be sharing best practices and strategies around operating optimally in a virtual sales and service environment on our website.

Your partnership with Cox Automotive and commitment to your employees, communities, and our industry is greatly appreciated, now and always.

Tim McKinley
Chief Sales & Marketing Officer

Keith Jezek
President, Retail Solutions

Overview

Cox Automotive is taking multiple steps to maintain business continuity with our clients, customers and partners while ensuring the safety of our employees during the COVID-19 pandemic. Our goal is to do the right thing to keep employees healthy, to keep our business moving forward, and to do our part to keep the virus from becoming a larger-scale pandemic. We are in close contact with government and health officials as this situation evolves. Here’s a summary of key measures the company has taken:

Employee Safety

In keeping with the latest guidelines from the Centers for Disease Control and Prevention, Cox Automotive continues to prioritize the health and safety of its employees, customers and communities. To that end, Cox Automotive is encouraging those who can work remotely to do so through Friday, May 1. By having most people work from home, it will help make the environment in our offices safer for those who do have to be onsite to perform their jobs. Employees who must be in the office are being asked to avoid face-to-face meetings as much as possible.

We’ve asked all Cox Automotive employees to refrain from international business travel, limit travel to client-essential domestic trips only and avoid large group meetings and attendance at external events.

We’re sending ongoing communications to team members to follow CDC guidelines, including practicing appropriate sanitation, staying away from people who are sick, and observing CDC suggested 14-day quarantines at home if they’ve traveled to Level 3 countries or come in close contact with those who have. Further, Cox Enterprises, the parent company of Cox Automotive, has announced enhanced medical benefits for its workforce, including free or reduced-cost telephonic access to health care providers and cost waivers for COVID-19 diagnostic testing.

Customer Safety

Currently, Manheim’s physical auction locations are operating Simulcast-only sales, where local, state and national directives allow. The Simulcast-only sales will run as a postcard sale – with vehicles shown as images only. No vehicles will run down lanes and locations are closed to buyers and sellers. . Manheim will continue to waive Simulcast buyer and seller fees until further notice. .

See the latest message from Grace Huang, president, Manheim.

Find out more information on Manheim’s COVID-19 response. 

Business Continuity

We have activated our Business Continuity Plan (BCP) for pandemic situations to ensure the continuation of services and to establish ongoing communications between key stakeholders as incidents occur and circumstances evolve.  All services being provided to our clients are being closely monitored and assessed for any risk relating to the COVID-19 situation.  As part of our BCP plan, we are in contact with critical third parties to verify their ability to provide continued support of our business.

This article has been updated with additional details. The original article was published on March 11, 2020.

Let’s just say this about COVID-19: We’re all in it together. Our job is to help make the automotive industry as good as it can be, and that has never been more apparent or more important than right now. Like so many others, Cox Automotive is looking for every opportunity to keep our people healthy, to keep our partners’ and clients’ businesses healthy, and to do our part to prevent the virus from spreading further.

We’re doing everything we can to keep the automotive marketplace up and running. That includes taking the steps outlined below to protect our people and deliver the best possible service through this unusual disruption. We’re monitoring the situation by the hour and we’re ready to move quickly with additional protocols should we need them.

We’ve promised to do our best for everyone and you can count on us to help lead the industry at this critical moment. If you want to talk about our response or how we can help you navigate these uncharted circumstances, please give us a call.

Thank you for your continued trust and partnership, and for caring about each other – especially those who may be suffering the most from the spread of the COVID-19 virus. We’ll get through this together.

Be well and be kind,

Sandy Schwartz
CEO, Cox Automotive

Insights and Expertise

Week #19 Special Edition: Economic Impact on Auto Sales with Jonathan SmokE

July 28: Cox Automotive’s Chief Economist, Jonathan Smoke, provides continuing coverage of the impact on the automotive industry from his home studio in Atlanta, GA

During this unprecedented time, Cox Automotive is committed to providing you with the most up-to-date automotive news. Check back regularly for the latest updates. For previous updates from Jonathan Smoke, click here.

OFFERS & SOLUTIONS

With health and safety as our top priority, the Cox Automotive family of brands is also committed to partnering with clients to keep the automotive marketplace up and running. Current offers and solutions for each of our brands can be accessed below.

Assistance Program

Dear Clients:

I wanted to provide an update for the month of June to the Cox Automotive Retail Solutions COVID-19 Assistance Program. As the initial impact of COVID-19 was being felt, Cox Automotive announced a 50% discount on our Retail Solutions Dealer Subscription Product fees for the months of April and May. As we work our way to a recovery as a country and an industry, it is critical to focus on driving consumers back to your showrooms and virtual properties. For that reason, Cox Automotive is offering a 25% discount on Autotrader Subscription Listings fees for the month of June 2020.

Furthermore, I hope you will take advantage of the following product enhancements and limited-time free offers. These have been developed to give you the extra virtual and online functionality that consumers expect and dealers are finding vital to their operations:

Product Enhancements

  • Autotrader Dealer Home Services: No additional cost to our Autotrader Subscription Listings clients.
  • vAuto Market Days Supply Trend Report: No additional cost to our vAuto Provision clients.
  • Xtime Self Check-in, Online Bill Pay & Intra-Dealer Chat: No additional cost to our Xtime clients.

Limited-Time Free Offers

  • Dealertrack F&I Assisted Remote Signing: Assisted Remote Signing will be no charge through end of August 2020 to existing clients on Digital Contracting on Dealertrack uniFI. If you are interested in Assisted Remote Signing and do not have Digital Contracting, reach out to us to learn more.
  • HomeNet SnapLot 360: SnapLot 360 will be no charge for 60 days starting May 1 to our Autotrader Subscription Listings dealer clients signed up for Dealer Home Services.

Please visit the Cox Automotive COVID-19 Resource page (https://www.coxautoinc.com/covid-19/) to better understand the details on the product specials mentioned above. The Resource page will also provide insights and resources, including a robust collection of videos and webinars, from across Cox Automotive developed to assist you.

As always, your partnership continues to be greatly appreciated.

With kind regards,

Keith Jezek
President, Retail Solutions

Dear Clients:

Speaking with many of you over the last week, we have been working through personalized plans to support your individual needs. These conversations made it clear we needed to come back to you with more.

In response, we are launching the Cox Automotive Retail Solutions COVID-19 Assistance Program.

For the months of April and May 2020, Cox Automotive Retail Solutions will provide a 50% discount on our Retail Solutions Dealer Subscription Product fees that include the following:

• Autotrader Subscription Listings
• Dealer.com Websites and Digital Retailing
• Dealertrack DMS
• Dealertrack F&I
• Dealertrack Registration & Titling Subscription Products
• HomeNet Automotive
• Kelley Blue Book Instant Cash Offer (ICO)
• vAuto
• VinSolutions
• Xtime

This reduction applies only to Cox Automotive Retail Solutions subscription fees. Associated fees from non-Cox Automotive entities remain the domain of those entities for their services. If any DMS provider lowers or waives their fees to Cox Automotive, we will pass the entire savings along to you, our dealer clients.

As for our valued OEM partners, Cox Automotive will work with you to determine how to distribute the funds through respective programs.

No action is required by you at this time to receive this discount. Your partnership with Cox Automotive and commitment to your employees, communities, and our industry is greatly appreciated, now and always.

Keith Jezek
President, Retail Solutions

Brand/Product Offers

June Offer:

(Product Enhancements) – Autotrader Dealer Home Services: No additional cost to our Autotrader Subscription Listings clients. Learn more

April/May Offer:

Autotrader Dealer Home Services. Learn more

June Offer:
(Limited-Time Free Offer) – Dealertrack F&I Assisted Remote Signing: Assisted Remote Signing will be no charge through end of August 2020 to existing clients on Digital Contracting on Dealertrack uniFI. If you are interested in Assisted Remote Signing and do not have Digital Contracting, reach out to us to learn more.

June Offer:
(Limited-Time Free Offer) – HomeNet SnapLot 360: SnapLot 360 will be no charge for 60 days starting May 1 to our Autotrader Subscription Listings dealer clients signed up for Dealer Home Services. Learn more

April/May Offer:
Manheim Express Offers $0 Sell Fees on All Self-Listed Vehicles for Month of April and May. Learn more

It’s been four weeks since I shared NextGear Capital’s dealer relief package in response to COVID-19’s dramatic impact on our industry. Since that time, we’ve witnessed this virus continue to impact our families, communities and our very way of life.

Our leadership team remains committed to providing support for our dealers during this crisis. Although these are trying times for us all, I am optimistic that we will thrive once again. With that said, I am extending our relief package originally set to expire on April 22 through the end of the month for all NextGear Capital dealers in good standing.

As a reminder, those benefits included the following:

• Deferred Curtailment & Extension payments for Eligible Floorplan Advances
• No Late Fees
• No Collateral Audit Reconciliation Fees
• No First Extension Fees
• No Full or Partial Waiver Fee tied to Curtailments or Extensions
• No Collateral Audit Fees

Dealers now have two full weeks to continue benefitting from our original relief package while we hammer out details on what a second wave of relief looks like. You have my word that you will hear from me again by next Friday, April 24, with more details.

While I understand economic assistance is appreciated, I also recognize it’s only one of the ways we can support our dealers right now. For example, businesses and consumers alike are being inundated with messaging related to COVID-19 and it’s difficult to cut through the clutter. Because of this, NextGear Capital is launching a COVID-19 Dealer Resource Hub that aggregates all of the most important resources and information in one place. On that topic, if you haven’t registered for Dale Pollak’s webinar focused on managing and sustaining business through the current crisis, I would encourage you to do so. You can sign up for free here.

Please continue reaching out to your Portfolio Manager with any needs or questions you may have and know that our entire organization has you in our thoughts.

Scott Maybee
President, NextGear Capital

A message to our dealership friends

These are uncertain times, but we’re in this together. We remain committed to your fixed operations business needs and are here to partner with you on a safe solution. There’s never been a better time to support your customers with a white glove service experience that is safe and convenient.

In response to the COVID-19 situation, Clutch Technologies is offering Service Pickup & Delivery software at no cost through July 2020 to enable you to continue to drive service revenue and pick up customer vehicles for service. Our team is committed to providing a fully remote, simple implementation in three business days to get you up and running quickly. Learn more about Service Pickup & Delivery and how you can sign up.

Whether you’re an existing Clutch partner or not, we’re here to help. You are in our thoughts and you have our support.

Best,

Alan Powell
SVP Sales, Clutch Technologies

Vince Zappa
President, Clutch Technologies

Vehicle Surface Disinfection & Air Cleanse Services. Learn more

June offer:
(Product Enhancements) – vAuto Market Days Supply Trend Report: No additional cost to our vAuto Provision clients. Learn more

June offer:
(Product Enhancements) – Xtime Self Check-in, Online Bill Pay & Intra-Dealer Chat: No additional cost to our Xtime clients. Learn more

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