CARMEL, Ind. — ADESA will not participate in the automotive remarketing industry's initiative to establish a multi-platform system (MPS) that would allow simultaneous bidding on vehicles listed on multiple online auction sites.
Manheim, ADESA, and other independent auctions began developing the MPS after announcing it at 2014 Conference of Automotive Remarketing. Auction representatives formed a steering committee that engaged Auto Auction Services Corp. (AASC) to build and maintain the hub technology.
ADESA is pulling out of the initiative because of concerns about "the current competitive landscape, technology challenges and expected antitrust issues," the company said in a Feb. 23 statement.
"After lengthy and protracted efforts to create an MPS, our industry partners have been unable to agree on the best way to execute this solution," said Peter Kelly, president of the company's Digital Services Group.
The proposed multi-platform system would cause additional technological requirements and expenditures and could raise "new barriers to entry for smaller industry players," the company stated.
Mike Broe, president and CEO of AASC, has said the multi-platform system would benefit customers by enhancing competition.
Janet Barnard, President of Manheim North America, responded to ADESA’s decision: “It will be up to each auction to determine whether to join MPS when it is up and running, and participants will make their own choices for their own individual reasons.”
Barnard maintained that the MPS will put more eyes on more cars, adding that competition would increase and benefit everyone involved with an efficient online marketplace.
“MPS has been carefully shaped with relevant legal considerations in mind with an eye toward ensuring full access to all auctions, small or large,” said Barnard.
Originally posted on F&I and Showroom