Leadership Q&A

How is Manheim adapting its business model to accommodate the dramatic changes in the automotive industry over the past year?

Many of our customers who own large fleets of cars — manufacturers, rental car companies, banks, finance companies, and dealers — have all faced a dramatic change in their businesses this past year, largely due to the economy.   As a service provider, we are adapting our business model to accommodate some of the shifts in processes and market dynamics that will become the norm for the future.

The most significant change has been the increased activity of buying and selling online.  Manheim experienced 36% growth in its online transactions last year, with almost 20% of Manheim's volume sold to online buyers at the end of 2008.  We expect more than 25% of Manheim's volume will be sold to online buyers by the end of 2009.

Dean Eisner — President

In a time of so much change, how do you continue to ensure customer service excellence?

Through a bi-annual employee survey, our employees tell us what they need to improve their customer focus. We took this information to create the Team Manheim Service Vision and Values. The values simply ask that employees be pleasant, helpful, trustworthy, responsible and grateful toward our customers. Our Team Manheim Service Vision and Service Values are something all employees can feel good about and get behind. They incorporate our legacy and our future.

Diane Barton — Vice President, Customer Experience

What do buyers and sellers find appealing about the online environment?

Sellers want to improve their cash positions by selling their cars as quickly as possible, while trying to ensure that there is an active and competitive bidding market for their product in order to get the highest prices possible.  Our various online alternatives, including a variety of Online Event Sales, are providing the venues for them to accomplish this objective.

Buyers are reducing the amount of capital tied up in speculative inventory for their lots in favor of having virtual inventory that meets customer needs in real time. Manheim.com offers buyers a 24/7 marketplace with the largest inventory of cars for dealers everywhere.

Dean Eisner — President

How is Manheim helping dealers supplement their interaction with Manheim with additional online capabilities?

We are committed to expanding our reach beyond our current markets without buying land or building buildings to serve customers' needs. We are fully embracing the online sales channel with the conviction that we are writing the next chapter in the history of the remarketing industry.

We have gradually expanded the number of sessions offered by our free, traveling workshop, The Wholesale Institute, to help dealers better understand our online channels. This program assists dealers in developing best practices for managing their used vehicle inventory. It also helps both independent and franchised dealers create step-by-step procedures for buying inventory online and provides tips on using Manheim's online alternatives including OVE.com, Manheim.com and Manheim Simulcast.

Mike Broe — Executive Vice President, U.S. Operations

What strengths will serve Manheim well as it adjusts its business model to reflect these changes in the marketplace?

For decades, Manheim has been proud to rise to a challenge, and certainly our current environment presents one.  We have always valued taking action and doing the right things by our customers and employees — and these values will remain the foundation we continue to build on.   We have never been reluctant about looking for new ways to help our customers and will continue to help them through the changes they are experiencing by providing services like online, export, frontline services, and financing.  Cox has invested significantly in our locations throughout the U.S., as well as our technology infrastructure. These investments are now providing us with the stability that the remarketing industry needs as it relies on Manheim as the primary marketplace for used cars.

Dean Eisner — President

How are you working to improve the customer experience at physical locations?

We regularly look for ways to make it easier for our customers to do business at Manheim. Last year, we began updating and streamlining processes company-wide to ensure that customers have a seamless experience at each Manheim operating location they visit.  We also replaced kiosks at our operating locations in North America to provide a faster, easier and more reliable check-in process for dealers. In the future, the kiosks will offer more self-service options, including the scheduling of transportation, self-checkout and payment.

Mike Broe — Executive Vice President, U.S. Operations