Conference of Automotive Remarking Will Be Sounding Board for MPS Debate

The 2015 Con­fer­ence of Auto­mo­tive Remar­ket­ing (CAR) is com­ing up next week in Las Vegas – March 18–19 at Caesar’s Palace. The Inter­na­tion­al Auto­mo­tive Remar­keters Alliance (IARA) is meet­ing dur­ing that con­fer­ence, where lead­ers will be dis­cussing and debat­ing the future of the remar­ket­ing industry’s cur­rent­ly pro­posed Mul­ti­plat­form Bid­ding Sys­tem ini­tia­tive (MPS).

There’s been a split among the auc­tions on sup­port­ing or reject­ing the pro­posed MPS. The IARA would like to see auc­tions come togeth­er and adopt an indus­try wide state­ment, and just issued this state­ment about it:  “IARA would pre­fer to see an auc­tion-lead, indus­try-wide solu­tion. The Alliance is open to work­ing with its indus­try part­ners in com­ing days to iden­ti­fy spe­cif­ic objec­tions and cor­re­spond­ing solu­tions to move the project for­ward.”

This week, Man­heim, Colum­bus Auto Auc­tion, BSC Amer­i­ca, and WTG Glob­al (Whann Tech­nol­o­gy Group) filed a request with the U.S. Depart­ment of Jus­tice seek­ing con­fir­ma­tion that MPS, in its cur­rent form, is in com­pli­ance with antitrust laws. Man­heim and its col­leagues believe MPS would help keep the indus­try on track to pro­duce live trans­ac­tions this year; they think it would dri­ve inno­va­tion and effi­cien­cy to auc­tions, con­signors, and deal­ers.

ServNet announced last month that it had joined ADESA in decid­ing not to par­tic­i­pate in the remar­ket­ing industry’s cur­rent­ly pro­posed MPS. ServNet pres­i­dent Pat­ty Stan­ley said that recent devel­op­ments, tech­nol­o­gy chal­lenges, and antitrust con­cerns had led ServNet to the con­clu­sion that it would not be pru­dent to fur­ther pur­sue this ini­tia­tive. The com­pa­ny agrees with ADESA that, as it’s cur­rent­ly struc­tured, the pro­posed MPS would erode com­pe­ti­tion while increas­ing tech­nol­o­gy require­ments and expen­di­tures.

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