I know you’ll agree that a lot has changed over the past eight months. However, in that time, we’ve come to understand much more about this virus and its effect on our industry and our clients’ businesses. While there’s still uncertainty, the wholesale vehicle market remains as critical as ever. What we do matters. For Manheim, it’s about moving forward, adapting to changing situations, listening to our clients, and keeping health and safety always at the center.

Encouraged by the successful implementation of our Digital Block™ sales, Manheim launched a pilot program earlier this month for running cars down physical lanes. The pilot program began at Manheim Nashville and Manheim Daytona Beach and was recently expanded to 12 additional sites. (Click here to view all locations). This decision was made once we were confident in our phased-in approach and in response to client requests for more buying and selling options. Dealers who attended the first two physical sales told us they appreciated the added option and emphasis on safety, even though the number of sellers who ran vehicles was limited.

As a pilot program, we will continue to carefully monitor these sales before announcing plans for more locations. I’d especially like to thank our dealers for their ongoing support of our safety protocols throughout the pandemic, as it gave us assurance that together, we could safely return to running cars down lanes.

Our goal is not to run all cars down all lanes at all locations. It’s about operating our business in the safest way possible, while delivering convenience and efficiency to clients, regardless of how they choose to do business. And, while some clients have told us that digital has become a highly efficient way of doing business, others still desire more options to buy and sell cars.

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It’s been approximately five months since COVID-19 hit and many of us have developed new behaviors. They say it takes roughly 60 days for a behavior to become a habit. For me and my family, hiking has become our new habit as we try to spend more time outdoors. At Manheim, many clients have also formed new habits such as conducting more business digitally. Today, an overwhelming 97% of Manheim buyers are using Simulcast to bid on vehicles. And dealers are telling us they are joining more digital sales at more locations because they can do it safely and easily from their desk or mobile device.

We recently spoke with Jim McAndrew at Mid City McAndrews Motors about how the pandemic changed the way his dealership does business. “When COVID-19 hit, everybody’s world turned upside down. To say we had to make changes is an understatement.” Jim said that while he was already buying cars digitally, selling cars digitally was tough at first, but he got used to it, especially after seeing his online bidders quadruple. Now, he’s not sure if wants to go back to the way it was. “If you’re not changing today, you’ll get left behind.” Who could have imagined that when Simulcast was created roughly 20 years ago, that it would become so vitally important to our industry?

Earlier this month, the National Auto Auction Association (NAAA) celebrated National Auto Auction Week, designed to recognize the key role that auctions play within the auto industry, while acknowledging the contributions of employees and clients. During the pandemic, we appreciated the collaboration of NAAA leaders, as we banded together to support each other. And, while auctions, like other industries, have experienced disruption, we’re seeing new opportunities for Manheim to drive innovation and greater efficiencies for clients. For example, we are investing in vehicle information improvements to increase confidence in buying and selling digitally.

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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.

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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.

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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.

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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.

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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