Manheim, the nation’s largest auto auction company, will close six of its sites in June and move their operations to other nearby sites, a company spokesmen told Automotive News.
After the closings, Manheim will have 122 sites, including 73 in North America and 49 overseas.
The consolidation comes at a time when the auction industry is experiencing a drop in volume because fewer new vehicles were sold and leased during the worst of the recession, according to Automotive News. Lease vehicles typically return to the market and are sold at auctions within three years.
The National Auto Auction Association reports that auction volume dropped by almost 9% in the first quarter of 2011 compared with the first quarter of 2010. Volume dropped almost 6% in all of 2010.
Manheim spokesperson Kelly Frommer says consolidating operations makes good business sense because it allows Manheim to bring more buyers and sellers together in a single location.
She said in most instances the date and start times of a closed operation will remain the same once it relocates. “You’ve got more buyers and sellers in one location, and there’s more reason for them to go to a location,” she added. “They can participate in more sales.”
Specifically, Manheim Colorado in Commerce City, Colo., will move to Manheim Denver in Aurora, Colo.; Manheim Metro Dallas in Grand Prairie, Texas, moves to Manheim Dallas in Dallas; Manheim Metro Detroit in Flat Rock, Mich., moves to Manheim Detroit in Carleton, Mich.; Manheim Las Vegas in Las Vegas moves to Manheim Nevada in North Las Vegas, Nev.; and Manheim Tennessee in Nashville moves to Manheim Nashville in Mount Juliet, Tenn.