Attention General Managers - National Auto Auction Association

Fall 2012
Attention General Managers
NAAA Offers Incentive to Encourage 100% Participation in the Annual Auto Auction Industry Survey
Every auction owner or general
manager of a member auction
who completes the survey will
receive two complimentary room
nights at the JW Marriott hotel
in Indianapolis, IN, during the
Association’s 65th annual
convention September 3-6, 2013.
The offer, a $400 value, is nontransferable.
take part,” noted Frank Hackett, chief executive officer. “So we’re offering this incentive
to boost response.”
For its 15th annual industry survey, NAAA
has set a goal of 100 percent participation
from our member auctions and is willing to
make it a rewarding experience!
He added that the participation rate averages
71 percent, which may be because some
auctions are reluctant to release proprietary
information. However, an independent third
party, the firm of CliftonLarsonAllen LLP,
conducts the survey and compiles all the
data into general statistics for an overall
industry report so no individual answers can
be identified or disclosed.
The survey provides the most accurate picture of the wholesale auto auction industry
that includes such aspects as auction values,
average sales volume and prices, level of
service, benefits provided, charitable contributions from auctions and other industry
organizations.
“Because our survey is a measure of our
industry’s success and demonstrates its
strength, as well as supplies information that
is relied upon in making business decisions,
we feel it’s important that all of our members
“We understand concerns about privacy and
want to reassure our members that all their
survey responses are secure and remain
confidential with us,” Hackett explained. n
NAAA Political Action Committee Tops $20,000 Fundraising Goal
Diamonds proved to be the National Auto
Auction Association’s best friend when it
came to helping the organization surpass
its fundraising goal for its new Political
Action Committee, NAAAPAC. A benefit
raffle held at the NAAA annual conference
this October in Orlando, FL, netted a total
of $20,600 from members who gave $200
per chance to win the prize of a 1.33
carat stone.
NAAA executives present PAC check at
the 2012 NAAA Annual Conference.
From left: Vice President Jack Neshe,
President Charlotte Pyle; and PAC
Treasurer Dave Angelicchio.
“Don has always been a loyal member
and major supporter of our association,”
said Chief Executive Officer Frank Hackett. “We appreciate his participation in
this benefit event along with all the other
members who made our initial fundraiser
for NAAAPAC a great success by exceeding
our $20,000 target.”
Don Meadows, of Auto Auction Services
Corp., had the winning number drawn by
the two young daughters of NAAA President
Paul Lips.
continued on page 7
Why Ellie Johnson Loves Mondays DesRochers Honored with Fellow 5 Tom Caruso Inducted Into NAAA Hall of Fame
Inside 46 Jake
Hershey Honored as Industry Pioneer 7 Jerry Girvin Honored as Auctioneer of the Year 8 Throwing the Switch to
News Go Electronic
Scholarships Available 9 Arbitration Policy Amendments All Auctions Affected by Hurricane Sandy
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•
•
13 On The Road in November 14 Strategic Partnership Jack DeMao Named Exhibitor of The Year
15 AASC Reaches Milestone 16 Cadigan Promoted 17 NAAA Committees 18 Hinton Elected to Council Saris Receives Fellow
•
•
2012-2013
Board of Directors
Paul Lips
President’s Message
Working Together We Will Make a Difference
President
ADESA Corporation
New car sales continue to improve, leasing
has risen and credit availability has expanded. All indications are that the supply
of used vehicles will increase in the coming
years and auctions will continue to play an
integral role in the remarketing of those
vehicles. We are primed for growth!
Jack Neshe
President-Elect
ADESA Boston
Ellie Johnson
Vice President
Manheim North Carolina
Jay Cadigan
Executive Vice President
Manheim
Charlotte Pyle
Chairman of the Board
Capital City Auto Auction
Dave Angelicchio
Treasurer
Pittsburgh Independent Auto Auction
Warren Byrd
Secretary
ADESA Corporation
Warren Young, Sr.
President-Emeritus
Chad Bailey
Paul Lips
President
In addition to a healthier business outlook
for the upcoming year, I’m also excited by
the opportunity I will have again to visit
many auctions and meet the people who
make success happen day in and day out.
The past two years I spent traveling with
the leadership team around the remarketing community confirmed one of my core
beliefs — our greatest asset are the people
who work in this industry and without
their skills, talent and dedication, we
couldn’t deliver the value NAAA member
auctions are known for.
Akron Auto Auction
David Blake
Auto Auction of New England, Inc.
Doug Brasher
Brasher’s Idaho Auto Auction
Mike Browning
Manheim Mississippi
Warren Clauss
ADESA Buffalo
Daryl DeVries
Greater Kalamazoo Auto Auction
Doug Doll
KCI Kansas City
Steve Kesler
Kesler-Schaefer Auto Auction, Inc.
Rich Newey
Brasher’s Sacramento Auto Auction
John Odorisio
Manheim New Jersey
John Poteet
Louisiana’s 1st Choice Auto Auction
Bill Smith
ADESA Little Rock
On The Block is published by the National Auto
Auction Association (NAAA) for the use of its
members, and for companies and individuals active
in the wholesale vehicle industry. Auction members,
associate members, and others may submit
feedback, article ideas or information to:
National Auto Auction Association
5320 Spectrum Drive, Suite D
Frederick, Maryland 21703
301-696-0400 • 301-631-1359 fax • naaa@naaa.com
2
I would like to thank all of you — members,
exhibitors, and staff — for an outstanding
conference in Orlando. It was an exciting
time for me and my family and I truly
appreciate the support that everyone has
given me. The industry is fortunate to have
such great people like you as part of our
NAAA family.
Due to Hurricane Sandy pounding the
northeast, many of us shut down operations
for the safety of our employees and customers.
But as always, we return to selling cars in
the face of past challenges.
Just as we’ll bounce back from the storm,
the automobile industry is also rebounding.
We will continue to move the ball forward
with our advocacy efforts on Capitol Hill
and our leadership development with the
Disney Institute. We’ll work more closely
with the chapters to engage more members
in our policies and practices. We will offer
training and workshops to improve consistency and standardization in the industry.
We will encourage and reward auctions to
participate in the association, our annual
survey and AuctionNet.
Most importantly, we will strive to unite
all of us across the industry to the benefit
of all. Working together we can make
a difference! n
CEO’s Message
Industry News
One of the few sectors to have experienced
a normal recovery is new light vehicle
sales. As Ira mentioned, sales this year will
be above 14 million units. This is the third
year of double-digit gains. Sales of new
light vehicles promise to continue strong for
years to come for the following reasons:
• Pent-up demand created during
the recession
• Population growth
• Easy and cheap credit
• New attractive, fuel efficient vehicles
• Demand for pickups as housing
construction rises
• Increase in financial wealth and housing
wealth as house prices increase
Frank Hackett
Chief Executive Officer
I am sorry to report the loss of a colleague
in our profession. Matt Marks, long-time
executive director of the International Automotive Remarketers Alliance (IARA), died
on his 70th birthday, Oct. 28 from a heart
attack. He was a true gentleman whose
dedication and commitment to remarketing
will be greatly missed.
A few weeks ago, NAAA’s Economist Ira Silver
gave a report to a number of industry
leaders in Phoenix, AZ. I would like to
share some of his comments. Ira said that
the good news is the bad news is ending.
Now that we are past the election, some
uncertainty is behind us and politicians
can begin dealing with both near-term and
long-term tax and spending issues. We can
expect this reduction in uncertainty and
the development of solutions to our tax and
spending challenges will improve consumer
and business confidence. This will lead to
more spending and more jobs.
Two other positives that will help fuel
future growth are the beginning of a belated
housing recovery and the sharp rise in U.S.
energy production brought about by fracking.
New vehicle sales growth resulted in three
years of gains in dealer consignment unit
volume. But, total auction volume has been
falling as past declines in new vehicle sales
and therefore non-dealer volume more than
offset the growth in dealer consignment.
Non-dealer (manufacturer/factory and
fleet/lease) volume is beginning to improve
and total auction volume stopped declining
and is on the brink of expansion. Once that
turnaround begins we can be confident that
it will continue for years. The driving force
is the past turnaround in new vehicle sales.
Just as in the auto industry the existing
auctions have learned to be profitable with
much less unit volume than in the past.
This means as unit volume starts growing
auctions will be generating profits. That is
indeed good news. n
3
Why Ellie Johnson Loves Mondays
of my top priorities,” Johnson says. “We’re
already seeing the value of strength in
numbers in the recent positive results of our
advocacy efforts. Cooperation between corporate and independent auctions is key to our
ongoing success. I am committed to working
together to be a strong voice on the issues
that can impact our members.”
Most people dread the beginning of the work
week, but not Ellie Johnson. “I can’t wait
for the excitement and energy that comes
with sale day every Monday,” says the
Manheim North Carolina general manager. “I
just get this great feeling as I walk through
the lanes talking with my employees or chatting with customers over lunch. I really love
this business.”
Her enthusiasm for the industry comes
naturally, having literally a lifetime of experience in the profession. “My father, Kenneth
Aycock, was an auctioneer who sold everything from tobacco and livestock to farm
equipment and real estate,” Johnson recalls.
“After almost 30 years in the business he
started Aycock Auto Auction in 1984. He built
the business I manage today.”
Having earned an accounting degree and
real estate broker’s license, Johnson worked
in a CPA firm while also helping out at the
family’s auction and realty business. Then in
1986 she joined her father at the Kenly, NC,
auto auction. “I’ve done everything, from
checking in and parking cars to working in
the front office processing vehicle registrations,” she notes. Eventually Johnson became
business manager and controller before
being named to her present position in 1997
when Manheim acquired the business.
Johnson believes her background in both the
independent and corporate auction worlds
will allow her to better serve the National
Auto Auction Association’s members as their
new vice president. She was elected at the
64th annual conference in Orlando, FL, for
the 2012-2013 term, serving on the executive
board with President Paul Lips and President-Elect Jack Neshe.
One such item on her advocacy agenda
would be a push for a uniform title system
to streamline processes and help auctions achieve more efficient, cost-effective
operations. Another goal of Johnson’s is to
help members keep up to date with technology that can improve management,
boost sales, strengthen service and enrich
customer satisfaction.
Ellie Johnson
Vice President
“It has been my pleasure to be a part of
NAAA for over a decade and while I feel I’ve
been able to contribute in my past capacities,
I believe I can do considerably more serving
on the executive board,” Johnson says. “I’m
grateful to the members for their vote of confidence in me by electing me to this position.
I truly look forward to serving them as their
vice president.”
She previously served on the board of directors
of the NAAA’s Southern Chapter and held the
office of that chapter’s treasurer, vice president and president. Currently she continues
her more than 10 years of service on the
association’s membership committee.
A major focus in her new role will be legislative advocacy. “Staying abreast of changing
laws and fighting legislation that hinders
our industry is very important to me and one
In addition to NAAA, her professional
memberships have included the Carolinas
Independent Automobile Dealers Association
(CIADA) and the National Independent Automobile Dealers Association (NIADA), which
twice honored her with its Eagle Award for
outstanding achievement in membership
development.
Johnson resides in Kenly with her daughter
where she is involved with numerous civic
groups and charitable organizations. She
is active in the Chamber of Commerce,
Community Watch, the town planning
board and tourism committee. Johnson
established two scholarships for graduating
high school seniors and avidly supports the
American Cancer Society’s Relay for Life,
raising over $100,000. “Our auction also
sponsors local FHA and 4-H programs as
well as the annual food and toy drive,” adds
Johnson. “I believe giving back to the community is one of the most important things
we can do as a business.” n
Past President Jim DesRochers Honored with Warren Young Fellow
Jim DesRochers was honored during the
National Remarketing Conference in Phoenix,
AZ, with a Warren Young Fellow. “Jim is a
true leader in our industry and deserves this
recognition,” stated President Paul Lips.
DesRochers is Vice President of Dealers Auto
Auction of the Southwest. Prior to this position, he was general manager of Manheim’s
Bay Cities Auto Auction in Hayward, CA.
Before joining Manheim Auctions in 1988,
DesRochers worked 15 years for Avis Rent A
Car. He also worked in senior management
positions for Southwest Auto Auction, Fresno
Auto Dealers Auction, Los Angeles Dealer
Auto Auction, and the California Auto Dealers
continued on page 16
4
Tom Caruso Inducted Into NAAA Hall of Fame
Tom Caruso, ADESA
president and chief
executive officer, was
inducted into the
National Auto Auction
Association Hall of
Fame during its 64th
annual conference this
October in Orlando, FL.
The NAAA represents
more than 300 auction
members in North
America.
Independent Automobile Dealers Association. That organization
conferred its highest
honor, the Lifetime
Achievement Award,
on Caruso in 2006.
Earlier this year he
was inducted into the
National Independent
Automobile Dealers
Association’s “Ring of
Honor,” the top award
the group can bestow
on a non-dealer.
Membership in the Hall
of Fame, established
in 1968, recognizes
Born in Belmont, MA, a
individuals whose
little town near Boston,
long-term service to the
cars and sports, parauto auction industry
ticularly baseball, was
and NAAA has contribCaruso’s passion from
From left: Chairman of the Board Jay Cadigan; Tom Caruso, and
uted improvements
an early age. Among his
President Charlotte Pyle.
to remarketing as a
many jobs, such as a
whole, has worked with
paper route, he worked
the trade organization to benefit its memat a car wash and then became a driver
bers and has consistently followed the high
for a wholesaler. By 17 he was selling cars.
standards of the association’s Code of Ethics.
Two years later he did a variety of jobs for
Caruso is an industry veteran with more
American Auto Auction, a small operation in
than three decades of experience.
Walpole, MA. Meanwhile, he earned a business
degree from Bentley College in Walthan, MA.
“I’ve known Tom for 28 years and it’s both
a privilege and an honor to induct him into
Then in 1980 Caruso truly began his profesthe Hall of Fame,” said award presenter Jay
sional career at Concord Auto Auction, as
Cadigan, vice president, industry relations
general manager when ADESA acquired
for Manheim and NAAA chairman of the
the Massachusetts business in 1992. Rising
board. “He has dedicated his career to our
through the corporation’s ranks, he became
industry and has always been very active in
Northeast regional vice president in 1998,
giving back his time and talent in service to
executive vice president of Eastern operations
the association.”
in 2007, and was promoted to chief operating officer in 2008. Just a year later he was
He added that their long-standing friendship
named to his current role as president and
despite working for the two major remarketCEO overseeing ADESA’s operations throughing rivals is a testament to Caruso’s business
out the U.S. and Canada. n
ethics. “He is a real proponent of competitors
Tom Caruso
coming together to work for the common
Hall of Fame Award Recipient
good of the industry. Tom strongly believes
you don’t get anywhere in business by bashing your competition,” Cadigan noted.
then a term as association president in 2006.
In addition, he has served on the board of
Caruso’s leadership roles at NAAA include
directors of the National Vehicle Leasing
serving as Eastern Chapter president and
Association and the Massachusetts
5
Jake Hershey Honored as Industry Pioneer
Former owner of Pennsylvania Auto Dealers Exchange recognized for contributions and
commitment to the remarketing industry
independent auctions
of how to keep moving
ahead,” Tribble said.
“His business survived
and thrived in the face
of extreme competition
for dealer-to-dealer
consignments.”
The National Auto Auction
Association named Jake
Hershey, Jr., former owner
of Pennsylvania Auto
Dealers Exchange (PADE),
a pioneer of the industry
for his achievements
and contributions to the
remarketing profession.
The honor was presented
during the association’s
64th annual conference
this October in Orlando,
FL. The NAAA represents
more than 300 auction
members in North America.
This Industry Pioneer
Award, given to those
who have worked in the
wholesale motor vehicle
industry and/or NAAA,
recognizes an individual
who has innovated or
enhanced methods of
improving services to remarketers through NAAA
member auctions; has
championed NAAA member auctions as providing
services for motor vehicle
remarketers unavailable
from any other source; and
has consistently followed
the ethical standards of the
NAAA Code of Ethics.
From left: Larry Tribble, Jake Hershey, and President Charlotte Pyle
Hershey’s father founded
PADE in 1957, realizing
a dream he nurtured as
a young man while still
working in the family’s
five and dime store.
In 1980 Jake Jr. joined
the growing family
enterprise that included
his mother Esther,
grandmother, aunts and
brothers, bringing with
him experience in auto
leasing and rentals.
He later served as vice
president and corporate
secretary before eventually taking ownership
along with his cousin
Skip Wolfgang, who had
come aboard in 1981.
Under their leadership,
the auction continued
to expand, servicing
customers from 49 states
from its York, PA, site
of more than 140 acres
with 11 fully automated
“I can’t think of anyone
auction lanes and an
more deserving of this
8,000-square-foot
honor than Jake Hershey
reconditioning facility.
who is a shining example
PADE remained one of
of service and commitment
From left: 1998 Industry Pioneer Award Recipient Esther Hershey;
the oldest and largest
to moving our industry
Jake Hershey, Jr., and Jake Hershey, Sr.
independently owned
forward,” stated award
and operated vehicle
presenter and past NAAA
He said that Hershey’s willingness to share
auctions in the U.S. until its corporate acquisiPresident Larry Tribble, owner and president of
business practices and experiences with othtion by ADESA in 2008.
the Southern Auto Auction in New Windsor, CT.
ers made him a valued NAAA member, taking
“Not only is he a man of high ethical standards,
vast industry knowledge and progressive business an active role serving on various committees, Now retired, Hershey enjoys traveling
with his wife Ruth around the country in
vision, Jake is also a real family man, good friend the executive board and as secretary.
their RV. n
and great guy.”
“Jake helped build and develop a well-oiled
machine that provides an excellent model to
6
Jerry Girvin Honored as Auctioneer of the Year
You’ve probably seen Jerry Girvin, even if
you’ve never met him or attended one of
the thousands of auctions he’s called during
his more than four decades in the business.
That’s because as the epitome of a professional auctioneer, a likeness of Girvin in
action appeared on the 2004 NAAA Member
Directory cover and was also used as the logo
and web site icon for the 2012 National Auto
Auction Week promotion.
Now, in addition to cover model, the Association has made Girvin its “Auctioneer of the
Year,” presenting him with the Bernie Hart
Memorial Auctioneer Award for 2012 at the
NAAA’s 64th annual conference in Orlando,
FL. Named in honor of Bernie Hart, who
served as NAAA’s executive director for more
than 30 years before retiring in 1988, the
annual award recognizes the industry’s most
visible person.
Girvin earned the award for a career spanning more than 45 years where he worked
four to six auctions a week and continues
today at two Manheim facilities in Pennsylvania as well as auctioneering for numerous
charitable organizations.
“To be sure, Jerry Girvin is a great auctioneer,
but what makes him a champion of his
jobs at Garden Spot Auto Auction in Ephrata,
PA, to learn the ropes of the business. Given
his passion for automobiles and his teenage
experience working at a car dealership, he
was soon selling vehicles there and then at
Manheim Auto Auction.
Jerry Girvin
Auctioneer of the Year
Shortly after his start Girvin began calling
at Fredericksburg, NADE, Bel Air, Perryopolis,
PADE, and a host of other auto auctions. His
work often required hours of travel. In the
first four decades of auctioneering, Girvin
only missed two sales — one for a blizzard
and another when he broke his foot. A week
later he was back behind the wheel, using a
cane for the gas and his left foot for the brake
so he could get to the auctions.
profession is his relentless pursuit of excellence,” noted Manheim Pennsylvania Vice
President and General Manager Tim Van
Dam. “Jerry’s passion is to be the best and
make everyone around him the best at the
same time. Mr. Girvin is truly a hero to our
industry, an example to auctioneers and a
friend to our dealers.”
He and his brother also formed Girvin Brothers
Auctioneers to call household goods and real
estate auctions in Lancaster County, PA. Years
later the brothers partnered with Ken Geyer
to establish the Geyer Girvin Auction Company, which handled real estate, antique and
estate sales throughout central Pennsylvania.
Receiving his honorable discharge from
the U.S. Air Force after serving in Vietnam,
Girvin followed his brother Tom into the
auctioneer profession. Never attending
auctioneer school, he began by taking odd
Today Girvin’s love of auto auctioneering
remains strong. He still calls for his two favorite
Manheim auctions doing the exotic, BMW and
Friday sale as well as being a permanent fixture on the Ford Motor Credit lane. n
NAAA Political Action Committee Tops $20,000 Fundraising Goal Continued from front page
He added that individuals who wish to
contribute up to $5,000 maximum allowed
by law to the NAAAPAC may still do so, either
by visiting the web site at naaa.com or by
contacting Legislative Manager Tricia Heon
at 301-696-0400 or theon@naaa.com.
“A well-funded PAC is a key component
of our enhanced legislative advocacy efforts
on federal issues of vital importance to our
membership,” Hackett explained. “The PAC
gives us greater visibility, access and
influence in Washington.”
NAAA, which represents more than 300
member auctions in North America,
formed its PAC last year as part of Pyle’s
initiative to be more proactive in the
political arena. “The association’s four
chapters recognized the value of building relationships with elected leaders and
policymakers who have a major impact
on our industry and enthusiastically supported Pyle’s goal by generously donating
$10,000 each as start-up costs to establish a PAC,” noted Hackett.
In addition, NAAA joined in an unprecedented strategic partnership with the
National Automobile Dealers Association
(NADA) and the National Independent
Automobile Dealers Association (NIADA)
to form a new advocacy team. Combined,
they represent 1.3 million employees at
55,614 dealerships and auctions with a
total annual sales of $682 billion.
“Working together in this strategic
partnership, assisted by the professional
lobbying firm of Federal Advocates and
support of our NAAAPAC funds, gives us
a powerful, united voice in our nation’s
capital to protect the interests of our
members and the industry,” said Hackett.
“Through ongoing cooperation and unity,
we will continue to strengthen the bonds
among us and build solid working relationships in our nation’s capital to the
greater benefit and success of all.” n
7
Throwing the Switch to Go Electronic
NAAA’s new e-documents make doing business easy, efficient and more cost effective
Whether it’s laptops, tablets or smartphones,
today everyone takes their office with them
to conduct business on the go. To meet this
growing digital demand for information
that’s readily accessible, the National Auto
Auction Association’s Annual Review and
Industry Survey are going electronic.
In 2013 NAAA will publish digital versions of
its two major documents that can be downloaded to any device.
“Because the annual review and industry
survey offer vital data and valuable information that can be useful to our members in
making timely business decisions, we want
to place it at their fingertips for access 24/7,”
explained Chief Executive Officer Frank
Hackett. “Electronic editions allow for more
efficient and cost-effective distribution that
accurately targets our market.”
He added that the switch to electronic
publications is the latest in the association’s
efforts at improving communications and
enhancing information sharing to benefit
the membership.
“We understand that in the current economic
climate our members can’t afford to miss
any opportunities that are out there,”
Hackett said. “To meet today’s business
challenges, you must be well informed and
connected. We want to provide our members
with that advantage through a variety of
handy resources and easy-to-use tools to stay
up to date with industry trends and initiatives.”
NAAA’s web site also provides members
with another source for the most current
industry policies, standards, certification
Scholarships Available
The NAAA Warren
Young, Sr. Scholastic Foundation, Inc. assists
full-time employees, their children,
step-children and
grandchildren who
plan to continue education in college or vocational school programs. Scholarships are
offered each year for full-time study at an accredited institution of the student’s choice.
This scholarship program is administered
by Scholarship Management Services®, a
division of Scholarship America®. Scholarship Management Services® is the nation’s
largest designer and manager of scholarship
and tuition reimbursement programs for
corporations, foundations, associations
and individuals.
8
Eligibility
• Full-time U.S. or Canadian employees,
employed as of the date of notification, of
National Auto Auction Association North
American member auctions or corporate
offices and their children, step-children
and grandchildren.
• High school seniors or graduates who
plan to enroll or students who are already
enrolled in full-time undergraduate
study at an accredited two-year or four year college, university, or vocational technical school for the entire upcoming
academic year.
If selected as a recipient, the student will
receive an award of $2,000 or $4,000(U.S.).
Up to three (3) awards totally $10,000 will be
awarded per each of the four NAAA memberchapter/corporate office geographic locations each year in the following manner:
• One award of $2,000 will be granted to a
vocational-technical student in an auto related course of study or to a two-year
college student.
• Two awards of $4,000 each will be granted
to students attending a four-year college
(or its equivalent).
requirements, grading and arbitration rules
or archived economic reports, industry
surveys, annual reviews, plus other programs
and guides. There are links to Black Book’s
weekly used car value report and AuctionNet’s wholesale data network.
In addition, members have access to association-related materials, including annual
reports, 990 tax forms, directories, an auction
locator map, event schedules, activity listings,
photo galleries, member headline news and
the Warren Young, Sr., Scholastic Foundation
program. And of course, the web site offers
you the fastest, easiest way to register online
for all of NAAA’s events, such as NAAA/CAR
and the annual conference. n
Scholarship Management Services® will process only the first 200 applications received
postmarked February 1 or earlier.
Scholarship recipients are selected on the
basis of academic record, demonstrated
leadership and participation in school and
community activities, honors, work experience, statement of goals and aspirations,
unusual personal or family circumstances,
and an outside appraisal.
Additional information can be found at
www.naaawysf.com. n
Additional Info - page 12
BREAKING NEWS!!!!
MEMBER NEWS!!!!
INDUSTRY NEWS!!!!
THE NEWS WILL GET OUT.
Send to oakman@naaa.com
ARBITRATION POLICY AMENDMENTS
President Paul Lips reports the Board of
Directors approved amendments to the Arbitration Policy that take effect April 1, 2013.
The amendments include wording changes
and several wording and paragraph shifts
in the policy.
vehicle. If there is any problem, a complaint
must be properly filed with the Arbitration
Office within the established arbitration time
limit. The Buyer assumes responsibility for
mechanical or electrical failure once the
arbitration period is over.
Current Policy: 9. Arbitration by Selling
Channels (page 6 of policy)
c. Online: Sellers who sell to online Buyers
through any of the online channels and
provide a condition report have the additional responsibility to disclose defects or
damage that are “visible” in nature. The
Seller must disclose damage, mechanical
defects, and electrical defects, (but not
actual repair cost) with a cumulative
auction (wholesale) repair cost in excess
of $500. Undisclosed cumulative damage, including mechanical and electrical
defects, in excess of $500 is subject to
arbitration by the Buyer due to an inadequate disclosure of damage or condition. Actual images of the listed vehicle
must be used, unless proper disclosure
is noted by the Seller, who makes it clear
the actual vehicle is not shown.
Approved: Buyers should thoroughly check
and, if possible, test drive every purchased
vehicle, either personally or through an
Auction Post Sale Inspection (PSI). If there is
any problem, a complaint must be properly
filed with the Arbitration Office within
the established arbitration time limit. The
Buyer assumes responsibility for any and
all mechanical or electrical defects once the
arbitration period is over.
Approved: 9. Arbitration by Selling Channels
c. Online: Sellers are required to disclose
any single mechanical, electrical or
visible defect (including interior and
exterior conditions) if the auction
(wholesale) repair cost is $500 or more.
Disclosure is satisfied via an announcement, condition report or other industry
acceptable means of disclosure. Any
images presented must be actual images
of the listed vehicle, unless proper disclosure is made that the vehicle images
are not of the listed vehicle.
Current Policy: Buyers should thoroughly
check and, if possible, test drive every
Approved: Remove 1, 2, and 15 from Structural damage chart and add Items 2 and 15
to the Arbitration Rules for Structural Damage section of the policy.
Approved: Remove asterisk * Common on
minivans and CUVs from chart.
Approved: New Language - Warning Lights The announcement of the presence of
warning light does not exempt a seller from
arbitration responsibilities as defined by the
policy. The issue(s)/defect(s) found to be
the cause(s) of the light(s) (if recognized by
the policy matrix) may be arbitrated within
the stated time periods and dollar amount
thresholds.
Approved: New Language - Dollar limit to
qualify an Arbitration Claim - Singular items
that are $500 or more to repair regardless
of the channel. In other words, remove the
cumulative clause for online purchases and
online purchases are treated the same as
inlane purchases relative to the dollar limit
for arbitrations.
Arbitration Policy
www.naaa.com
Standards
ATTENTION
All Auctions Affected
by Hurricane Sandy
AutoCheck wants to offer you and the auto
auction industry protection from vehicles
flooded by Hurricane Sandy. Discussions are
underway to identify the most effective approach.
Many of these damaged vehicles could be
offered for sale in the very near future.
AutoCheck is asking for your help. Please send
VINs for vehicles with confirmed damage from
Hurricane Sandy’s flood waters. AutoCheck will
accumulate VINs and notify auctions when
Hurricane Sandy flood vehicles are offered for
resale. Typically, vehicles are funneled from
the damage area to other parts of the country.
By reporting vehicles damaged from Hurricane
Sandy to AutoCheck, your auction is helping to
protect the auto auction industry from sellers
who do not make the proper announcements
at auction. If you have questions, AutoCheck
Auctions can be reached at 205-414-2727 or
helpdesk@autocheckauctions.com. n
Access OnlinE
www.naaa.com
>> Policies & Standards
>> Legislative Resources
>> Education & Training
>> Certification Program
>> Economic Reports
>> Industry Survey & Reports
>> Annual Review
>> Condition Reports
>> Membership Information
>> PAC Information
>> Chapter Information
>> Foundation & Scholarships
9
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12
On The Road in November
ABC Birmingham
ADESA Birmingham
Celebrating 25th Anniversary
From left: ABC Birmingham Owner
Jim Phillips; President Paul Lips;
President-Elect Jack Neshe; and CEO
Frank Hackett
From left: CEO Frank Hackett; President Paul Lips; ADESA Birmingham
General Manager John Rea; and
President-Elect Jack Neshe
ADESA Phoenix
Dealers Auto Auction of the Southwest
Manheim Phoenix
From left: President Paul Lips;
ADESA Phoenix General Manager
Mike Russo; and President-Elect Jack
Neshe
Front: DAASW Vice President Jim
DesRochers. Back-left: PresidentElect Jack Neshe; President Paul Lips;
DAASW General Manager Stephanie
Gingras; and CEO Frank Hackett
From left: President Paul Lips; Manheim Phoenix General Manager Jim
Mumford; and President-Elect Jack
Neshe
National Remarketing Conference
Gifts from the President
Mountain State Auto Auction owners Joe and Charlotte Pyle behind a
1956 Chevrolet custom office desk.
Indiana limestone bookends
are presented by President
Paul Lips to Black Book
executives during a visit to
Black Book headquarters in
Gainesville, GA. Limestone is
Indiana’s state stone.
President Paul Lips is all business at
the NRC in Phoenix, AZ.
13
Strategic Partnership
to be on the lookout for
in 2013.
The strategic partners
in the united advocacy
efforts on federal issues
came together at the
National Auto Auction
Association’s annual conference held in
Orlando, FL, to report
on the new alliance’s
progress and discuss
the current state of
legislative affairs.
Sante and Michael
Esposito of Federal
Advocates, the joint
professional lobbyists
for NAAA and NIADA,
enlightened the group
on federal affairs affecting the automotive
remarketing industry.
They also presented a
brief program on PolitiRepresentatives from
From left: Panelist moderator Frank Hackett; NADA Vice President,
cal Action Committees,
the National AutomoLegislative Affairs, Dave Regan; NIADA Counsel Shaun Petersen;
explaining what it is,
bile Dealers AssociaFederal Advocates President Sante Esposito, and Managing Partner
the powerful role it
tion (NADA), National Michael Esposito
plays in advocacy and
Independent Automowhy it was important
bile Dealers Association
the grassroots efforts. Keeping the members
for NAAA to establish its own PAC.
(NIADA) and the NAAA provided a panel
engaged and energized is another key to
presentation outlining the team’s various
grassroots success, Regan noted.
The panel displayed the continued commitactions on policy, regulation and legislation.
ment that the three associations have made
NADA Vice President, Legislative Affairs, Dave NIADA Counsel Shaun Petersen discussed his in providing a united front in Washington,
newly appointed position on the National
D.C., since taking the unprecedented step
Regan described the successes of his organiMotor Vehicle Title Information System
almost a year ago to work together as a
zation’s strong grassroots campaigns along
(NMVTIS) Advisory Board as well as imporcollective influential voice for the industry.
with his foreseen legislative priorities in the
Combined, the alliance represents 1.3 million
upcoming congressional session. He credited tant regulatory issues. He explained the possible impact of past regulatory meetings of
employees at 55,614 dealerships and auctions
the strong relationships and cooperation
the Consumer Financial Protection Bureau
with total annual sales of $682 billion. n
with the executives who run the individual
and reviewed possible regulatory initiatives
state associations for the effectiveness of
Jack DeMao Named Exhibitor of the Year
Jack DeMao knows theft, vandalism and
increased insurance rates resulting from
those crimes — not to mention the loss of
customer trust — has been a concern of
every auto auction since the industry began.
“We understand security is critical to auto
auctions and their customers so serving the
remarketing industry is very important to
our business,” said the chief executive officer
of Electric Guard Dog.
For that appreciation of customer needs,
comprehension of the industry and commitment to the Association, the NAAA named DeMao the Marie Hingst Exhibitor of the Year
for 2012 at the organization’s 64th annual
conference in Orlando, FL.
The award is given each year to recognize an
exhibitor who displays a similar dedication
and commitment to NAAA as its namesake
and first recipient in 2006, Marie Hingst.
Electric Guard Dog is an associate member
of the association and has been an exhibitor
at the yearly meetings since 1994.
Jack DeMao
Exhibitor of the Year
“NAAA’s annual meeting was one of the first
shows we ever attended,” DeMao recalled.
“It’s always a great opportunity to network
with key players, long-time customers, old
friends and new faces all in one place at
one time.”
He noted that finding people new to the
industry can be difficult, but being a NAAA
continued on page 16
14
AASC Reaches Milestone
Looking back, it’s hard to believe that AASC
marks 15 years in business this December.
15 years ago, a group of visionaries from the
auction industry met to come up with a solution to help remedy the high cost of technology required to transmit vehicle data back
and forth between the vast assortment of
commercial account systems. It seemed each
one had a unique set of requirements even
though the data elements were similar. Leaders including Darryll Ceccoli, Larry Brasher,
Tony Moorby, Jim Hallett, Ray Nichols, Stan
Hoynitski, Gary Smith, Dave Wescott, Buzz
Cotton, and a host of others pooled resources
to see if the new media of the day would
actually facilitate change —
­ that media was
the Internet.
The idea was to create one Internet platform
that everyone could connect to so as to save
rewriting each system. By bringing the latest
technology to the largest group of users, it
could level the playing field for all participating auctions and raise the level of technology
for the entire industry at a fraction of the
cost of everyone going it alone.
Today, AASC member consignors transmit
a majority of their assignments to over 475
auctions in North America through AutoIMS.
com. One record is created that can be updated by both sides as vehicles move through
the remarketing cycle. Speed and accuracy
has improved, saving the industry tens of
millions of dollars annually in technology
costs and lowering depreciation by bringing
cars to market faster.
AutoIMS was designed by commercial
consignors using the data elements from
the various auction operating systems as a
foundation for continuous improvement.
AutoIMS constantly rolls out new features
that are available through the web so all
parties may benefit immediately.
How AutoIMS
Pays For Itself
AASC has assembled a world-class group of
developers and customer service personnel
who work in tandem turning client feedback
into new functionality. All production and
disaster recovery hardware and development
is performed in-house to ensure compliance
with the data security requirements of
corporate America. AASC handles data
transmissions between virtually every type of
operating system related to remarketing.
• Usable inventory data on
day ONE
To keep up with technology, AASC continues
to roll out mobile applications as users transition from PCs to tablets and smart phones.
Web services provide data quickly to dozens
of third party vendors who are essential to
the remarketing process. Many commercial
accounts are AutoIMS as their system of
record, and utilize our development services
on a contract basis to build tools that are
unique to their way of doing business.
• Better communications =
reduced days to sell
AASC’s suite of applications include:
AutoIMS-Vehicle Inventory Management;
RecoveryIMS-Repossession Management
System; LiveCRwriter-Condition Report
Writing Applications; LiveReports-Analytics
and Reporting without IT’s Help; and our
latest effort towards The HUB — an Internet
data platform to manage sales at both
physical and online auctions.
Thanks to all who have supported AASC over
the years and we look forward to 15 more
years of growth and support of the remarketing industry.
• Low start up and maintenance
costs
• Everyone uses it: 490+ auctions
and 2000+ consignors
• Flexibility - your best practices
enabled
• Smarter assignments and pricing
• Three words: Electronic
Condition Report
• Title management & tracking
• Built-in guide book pricing
• Accountability and visibility
• Lower IT costs now and
over time
Written by Don Meadows, AASC President/CEO
Brasher’s Northwest Named NIADA Auction of the Year
Brasher’s Northwest Auto Auction of Eugene,
OR, was selected as NIADA Auto Auction of
the Year.
The auction is a committed supporter of
the American Cancer Society, the National
Multiple Sclerosis Society, St. Jude Children’s
Hospital, and contributor to numerous community food banks.
From left: President Charlotte Pyle;
Brasher’s Northwest General Sales
Manager Mark Melton, and NIADA
Chief Operating Officer Steve Jordan
Auction General Manager Lisa Larkin and
fellow employee Anne Osterman gave a boost
to a fundraising campaign for St. Jude Children’s Research Hospital by offering to shave
their heads if the goal of $5,000 was reached.
The successful campaign raised $12,000
submitting Lisa and Anne to the clippers.
The generous giving of the auction and its
employees extended out to a fellow employee
whose 12-year-old daughter is battling spina
bifida. The auction hosted an annual golf
event raising more than $110,000 to help
pay for medical expenses, purchase a customized wheelchair and bicycle for Natasha
Melton, daughter of general sales manager
Mark Melton.
The well deserved award was presented at the
2012 NAAA Annual Conference in Orlando,
Florida this past October. n
15
Exhibiting Understanding and Loyalty Continued from page 14
exhibitor has made marketing to potential
new customers easy and convenient.
“Being at NAAA’s meetings helped build our
business and it continues to contribute to
our ongoing growth,” DeMao said. “Thanks
to such opportunities, our company has
been named one of the 500 fastest-growing
privately held companies in the U.S. by
Inc. Magazine.”
Founded in 1991 by Bill Mullis, a supplier
of guard dogs for more than 20 years before
developing an electric security fence system
to better protect his facility, Electric Guard
Dog grew into a multi-faceted business over
the next two decades. Today the Columbia,
SC, company is a security partner with customers in the auto auction, metal recycling,
freight and rental industries at more than
3,000 sites nationwide.
DeMao became CEO in 2007 when a majority
interest in Electric Guard Dog was acquired
by a group of private investors lead by Ulysses Management. An accomplished executive
with experience in a variety of industries
and regions of the world, DeMao previously
served as vice president of sales and marketing and then president of Chicago Pneumatic
Tool Company’s Automotive Division before
joining Desoutter LTD, a 500-employee subsidiary of Swedish multinational Atlas Copco
AB based in the United Kingdom. In 2001, he
became president and CEO at C.C. Dickson
Company, a Charlotte, NC-based wholesaler
of HVAC parts and equipment.
Residing in Charlotte, NC, with his wife,
DeMao serves as an instructor for the
Harvard Business School Club of the city’s
Management Development program and
avidly participates in endurance sports. n
Congratulations Jay Cadigan
Jay Cadigan has been named Vice President,
Industry Relations for Manheim. In his new
role, Jay is responsible for building and
maintaining strong relations with Manheim’s
partners across the industry. He will lead
the efforts to develop, promote and cultivate
industry-wide engagement, and also assist the
industry in establishing consistent standards,
processes and policies that achieve business
objectives and meet stakeholder’s needs.
Prior to this new role, Jay held a variety of
leadership positions within Manheim. Most
recently, in 2006, he was named market vice
president and oversaw the day-to-day activities of operating locations in Florida and
Puerto Rico. He spent three years as vice
president of sales and operations for the
General Motors and Avis Budget Group accounts for Manheim. Before that, Jay served
11 years as general manager of Skyline
Auto Exchange (now Manheim NY Metro
Skyline) in Fairfield, NJ.
An industry veteran, Jay has worked in the
leasing and rental car remarketing business
and has served in several leadership roles
in key automotive industry associations. He
is a past president of the National Auto Auction Association, and currently a member
of NAAA’s Executive Committee and Board of
Directors, serving as executive vice president.
“With more than 35 years of deep and diverse automotive industry experience, Jay is
well positioned to lead Manheim’s industry
relation efforts,” said Joe George, Manheim
Senior Vice President of Product Development. “Please join me in congratulating Jay
on this new role.”
Jay Cadigan
Manheim Vice President, Industry Relations
NAAA Past President Jim DesRochers Honored with Warren Young Fellow
Continued from page 4
Exchange. He is a former president of the
Western Chapter and served as president of
the National Auto Auction Association in
2004-2005.
The Fellowship was created in honor of
Warren Young, Sr., a pioneer in the auto
auction industry who retired from Manheim
in 1992 after serving for more than 35 years.
16
Past President Jim DesRochers (middle)
is presented a Warren Young Fellow
by President Paul Lips (right), and
President-Elect Jack Neshe during
the NRC Conference in Phoenix, AZ.
2012-2013 National Auto Auction Association Committees
Auction Standards Committee
Craig Amelung, Co-Chair
Matt Arias, Co-Chair
John Blobner
John Brasher Barry Fabricant
Joe George
Kurt Madvig
Bob McConkey
Pat Stevens
Manheim
Manheim
Manheim
Brasher’s Sacramento Auto Auction
ADESA Pittsburgh
Manheim
ADESA Corporation
DAA Northwest
ADESA Corporation
Canadian Committee
Lisa Scott, Co-Chair
Don Wallace, Co-Chair
ADESA Auctions Canada Corp.
Manheim Canada
Convention Committee
Corinne Amrhein, Chair
Dave Blake
Jamye Carpenter
Sam Chaple
Warren Clauss
Stephanie Gingras
Jason Hockett
Tracey Ireland
Mary Ann Kesler
John Odorisio
Charlotte Pyle
Paul Segar
Patty Stanley
Lynn Weaver
ADESA Corporation
Auto Auction of New England
AutoCheck Auctions
Manheim Nashville
ADESA Buffalo
Dealers Auto Auction of the Southwest
Auction Broadcasting Company
Manheim
Kesler-Schaefer Auto Auction
Manheim New Jersey
Capital City Auto Auction
GE Fleet Services
Carolina Auto Auction
Harrisburg Auto Auction
Dynamic Leadership Institute Committee
Chad Bailey
Tim DeBerry
Dan Dietsch
Lisa Larkin
John Odorisio
Charlotte Pyle
Akron Auto Auction
ADESA Corporation
ADESA Memphis
Brasher’s Northwest Auto Auction
Manheim New Jersey
Capital City Auto Auction
Finance/Budget Committee
Dave Angelicchio, Chair
Warren Byrd
Mark Capel
Bob Haluska
Joe Luppino
Jane Morgan
Joe Pyle
Bob Sullivan
Pittsburgh Independent Auto Auction
ADESA Corporation
Grand Rapids Auto Auction
ADESA Concord
Manheim
ADESA Corporation
Mountain State Auto Auction
Mid South Auto Auction
Independent Auction Group
Dave Blake, Co-Chair
Charlotte Pyle, Co-Chair
Lynn Weaver, Co-Chair
Auto Auction of New England
Capital City Auto Auction
Harrisburg Auto Auction
Legislative Committee
Michelle Mallon, Co-Chair
Karen Wrye, Co-Chair
Warren Clauss
Daryl DeVries
Lisa Larkin
Greg Mahugh
Jane Morgan
Jack Neshe
Geoff Parker
Joe Pyle
Chuck Redden
Bill Smith
Ellen Westpfahl
Keith Whann
Bonnie Williams
ADESA Corporation
Manheim
ADESA Buffalo
Greater Kalamazoo Auto Auction
Brasher’s Northwest Auto Auction
DAA Northwest
ADESA Corporation
ADESA Boston
ADESA Cincinnati/Dayton
Mountain State Auto Auction
AutoTec
ADESA Little Rock
Manheim Central Florida
Columbus Fair Auto Auction
Manheim Dallas
Membership Committee
Kenny Osborn, Co-Chair
John Rea, Co-Chair
Mike Caggiano
Sam Chaple
Warren Clauss
Daryl DeVries
Jay Fahrendorff
Mark Greb
Jerry Hinton
Tim Hoegler
Ellie Johnson
Steve Kesler
Jack Neshe
Michele Noblitt
Greg Price
Charlotte Pyle
John Swofford
Dave Taylor
Mark Wanamaker
Lynn Weaver
ADESA Dallas
ADESA Birmingham
ADESA Corporation
Manheim Nashville
ADESA Buffalo
Greater Kalamazoo Auto Auction
ADESA Minneapolis
Plaza Auto Auction
Brasher’s Portland Auto Auction
Manheim New England
Manheim North Carolina
Kesler-Schaefer Auto Auction
ADESA Boston
Dealers Auto Auction of the Rockies
Chattanooga Auto Auction
Capital City Auto Auction
America’s Auto Auction Central Texas
ADESA Syracuse
Manheim Baltimore-Washington
Harrisburg Auto Auction
continued on page 18
17
2012-2013 Committees
continued from page 17
NAAA/NADA Joint Marketing Committee
Ray Nichols, Chair
Frank Hackett, Secretary
BSC America
Chief Executive Officer
NAAA
Warren Byrd
Jay Cadigan
NADA
Mike Stanton
Paul Taylor
Dan Ruddy
Nominating Committee
Charlotte Pyle, Chair
Jay Cadigan
Dave Angelicchio
Bob McConkey
John Rea
Capital City Auto Auction
Manheim
Pittsburgh Independent Auto Auction
DAA Northwest
ADESA Birmingham
Past President’s Committee
Charlotte Pyle, Chair
Capital City Auto Auction
Thank You for
Your Dedication
2011-2012
Board of Directors
Charlotte Pyle
Paul Lips
Jack Neshe
Dave Angelicchio
Warren Byrd
Jay Cadigan
Warren Young, Sr.
Stephane St. Hilaire
Mark Greb
Keith Lelux
Kurt Zabel
Dave Blake
Daryl DeVries
Bill Smith
Doug Brasher
Chad Bailey
John Poteet
Rich Newey
Hinton Elected to Council
Political Action Committee
Jack Neshe, Chair
Dave Angelicchio, Treasurer
Sam Chaple, Asst. Treasurer
Kristie Griffin, Midwest Chapter
Ellie Johnson, Southern Chapter
Greg Mahugh, Western Chapter
Chuck Redden
Lynn Weaver, Eastern Chapter
ADESA Boston
Pittsburgh Independent Auto Auction
Manheim Nashville
Greater Milwaukee Auto Auction
Manheim North Carolina
DAA Northwest
AutoTec
Harrisburg Auto Auction
NAAA 20 Year Employee Honored at Annual
Conference with Warren Young Fellow
Jerry Hinton was elected to the Gresham,
Oregon City Council, defeating Mario
Palmero 55 percent to 44 percent. Hinton
will replace David Widmark, who is retiring
from the council.
Hinton, 51, general manager for Brasher’s
Portland Auto Auction, Inc., is running in
the footsteps of his father, a former council
member.
Hinton said the city’s biggest challenges
are public safety, job creation and preventing urban decay.
From left: President Charlotte Pyle; Scholastic Foundation President Jay
Cadigan, Sue Saris, and Chief Executive Officer Frank Hackett
18
Congratulations Jerry!
www.naaa.com • email: naaa@naaa.com • 301.696-0400
19
National Auto Auction Association
5320 Spectrum Drive, Suite D
Frederick, Maryland 21703
301-696-0400 • Fax 301-631-1359
FIRST CLASS
Presorted
U.S. Postage
PAID
Westminster, MD
PERMIT NO. 15
Address Correction Requested
SAVE THE DATE – PLAN AHEAD
NAAA/CAR CONFERENCE
MARCH 6-7, 2013 • CAESARS PALACE