Manheim and several other remarketing industry partners will continue moving forward to develop a multiplatform bidding system (MPS) in the wake of announcements by ADESA and ServNet Auctions dropping out of the planning process.
Developing a system that would allow simultaneous bidding on vehicles listed on multiple online auction sites would "drive innovation, increase competition and deliver more efficiency and benefits to auctions, consignors, dealers and, ultimately, retail customers," according to a Manheim release.
In a related announcement, Manheim said it has filed a request with the U.S. Department of Justice seeking a ruling that the multi-platform system would comply with federal anti-trust laws.
"This important action adds to the momentum building and due diligence around MPS and keeps the project on track to produce live transactions this year," said Janet Barnard, president of Manheim North America. "As an industry leader, we take very seriously the need to innovate to address the changing needs of our customers and the long-term interests of our industry."
According to Manheim, other supporters of a multiplatform system include WTG Global (Whann Technology Group), an independent digital auction technology company; BSC America Inc., a large regional auto auction company; and Columbus Fair Auto Auction, an individual auction.
ADESA pulled out of the initiative due to concerns about "the current competitive landscape, technology challenges and expected antitrust issues," the company said on Feb. 23. ServNet echoed ADESA, saying on Feb. 26 that such a system would "erode competition."
Read Manheim's full statement here.
Originally posted on Automotive Fleet