ATLANTA — Through a joint venture, Manheim and DriveTime, a subprime auto finance source, have launched a new wholesale auction company called Go Auto Exchange LLC. This partnership creates a separate, independent wholesale auction company focused on independent dealers and the low-end vehicle segment.
Go Auto Exchange will operate independently from Manheim and DriveTime locations. The new company will establish its headquarters this year in Atlanta and will operate an office in Phoenix. Officials also revealed plans to expand the company’s footprint into other markets in 2014.
Tim Janego, who most recently served as Manheim vice president for the Eastern region, will serve as president of the company and will work closely with teams from Manheim and DriveTime to drive the new company’s expansion plans.
“Tim’s extensive background in the wholesale auction industry made him a perfect fit to lead this exciting new business,” said, Joe Luppino, Manheim senior vice president and CFO. “Go Auto Exchange will benefit from Tim’s deep operational experience in running wholesale auctions and from DriveTime’s inventory and deep knowledge of this growing market segment.”
Go Auto Exchange plans to hire a combination of auction pros and industry experts to run its locations. In addition, the company will partner with NextGear Capital to offer vehicle financing options to independent dealers. Go Auto Exchange will share more details in the weeks ahead.
“We’ve been a longtime Manheim customer, and this new arrangement with them is a result of our close collaboration and identifying what our mutual customers need and want to succeed,” said DriveTime Chairman Ernie Garcia. “Manheim’s success with wholesale auto auctions and our deep knowledge of the low-end vehicle market and independent dealers is a perfect match.”