Cox Automotive is discontinuing physical auction sales at its Manheim Edmonton location but plans to invest even more in Toronto and Montreal.
Matt Trapp, Manheim Regional VP, East/Canada, told Canadian auto dealer that following the divestiture of some of its software businesses last December to TRADER Corp, the company realigned its auction operations as part of a North American strategy.
“We spent the next 60-90 days making our evaluation of what is our go-to-market strategy,” said Trapp. “The Manheim Edmonton (piece) of that was born out of that exercise and understanding how do we meet that going forward? We’re very comfortable with our investments in other areas (of Canada) and we are investing even more into Toronto and Montreal. They are our flagship auctions in terms of both facilities and size of the markets. They were due for an upgrade, in particular with their simulcast technology.”
He said the decision on Edmonton was difficult to make but changes in the Edmonton wholesale market have caused it to no longer be the right solution for its existing operations or long-term business strategy. He added that 40 jobs will be lost.
He added that bringing in the new digital, simulcast technology improves both the in-lane buyer experience for sound and quality and through their visuals on the screen.
“Those two locations in particular have the most reach in terms of buyers across both sides of the border due to their geographic locations,” said Trapp.
The last public sale in Edmonton will happen on March 25 and the last commercial physical sale on March 30. The company will continue to support commercial clients in Western Canada through its digital auction services in Edmonton and Vancouver.”