September 2011, Automotive Fleet - Feature
It started in 2001 as a call to action by a handful of remarketers to have a voice in the auction industry.
The meeting of industry leaders that followed gave birth to the International Automotive Remarketers Alliance (IARA). A decade later, the Alliance has become — and continues to grow as — an important, valuable voice in the remarketing industry. It has had strategic alliance with Bobit Business Media since 2006.
2001-2004: A CALL TO ACTION
The core group of remarketers who formed the IARA were called together by Dave Langley of American Honda Finance Corp., who informed his colleagues and professional competitors that the ADT Automotive Auction Client Advisory Board meetings were “going away,” remembered Dave Alfonso of KIA Motors of America who was invited to the meeting, which was hosted by Steve Piccinati, then with Hyundai Motor Corp.
“[Dave Langley] said we were going to lose the Client Advisory Board meetings that were designed to provide feedback to both ADT and the auction industry through the National Auto Auction Association (NAAA). He suggested we form a remarketers version of the NAAA to fill the void,” said Alfonso.
While the loss of the ADT Automotive Auction Client Advisory Board meetings was the immediate motivation to create the IARA, Langley noted there was a more fundamental need for a remarketer’s organization.
“Everyone was reinventing the wheel,” Langley explained. “Individual sellers had their own condition reports, grading systems, auction score cards, reconditioning methods and standards, marketing initiatives, and Internet programs. Fleet programs [throughout the industry] were being developed through trial and error, not collective experience.”
Joining Langley, Alfonso, and Piccinati at that eventful meeting at Hyundai with the company’s legal counsel in attendance were John Schuetz of Daewoo, Scott Kolb of American Isuzu, and Chuck Parker of Bobit Business Media.
The meeting involved putting together a lineup of officers, discussing key initiatives, writing a charter, and coming up with a name — the International Automotive Remarketers Alliance — that would acknowledge the global realities of the marketplace.
Langley took on the role of president and David Gesualdo of Bobit Business Media was appointed managing director. Gesualdo transitioned his responsibilities to Parker who briefly served as executive director — before stepping down due to other professional obligations.
Matt Marks was hired in 2002 as an employee to be the Alliance’s executive director, a role he continues to serve today.
Langley considers taking the IARA from idea to reality among his greatest accomplishments, culminating with his tenure as its first president. Another was establishing the IARA committee structure, which was spearheaded by Parker while he was executive director.
The Alliance’s first official conference was held in 2002 at the Broadmoor Hotel in Colorado Springs, Colo. Alliance members meet biennially in winter and summer.
In 2006, the Alliance began co-locating its winter Roundtable with the Conference of Automotive Remarketing (CAR), which is produced by Bobit Business Media. The IARA continues to hold its summer Roundtable independently.
2004-2007: THE ‘NEXT LEVEL’
While the other founders undoubtedly took the right first steps to establish the IARA and shepherd it during its formative years, Past President Stephen Houston, a remarketer with Wachovia (later Wells Fargo and now an independent remarketing consultant) — who served as the IARA’s president from 2004 to 2007 — characterizes these early days as “rocky.” This was primarily due to the fact that the auctions erroneously saw it as a potential threat in spite of the work of the other founders.
Houston’s goal as the Alliance’s second president was to change this perception and take the IARA to the “next level.” He spoke directly to the auctions, assuring them that contrary to being a threat, the IARA was an asset to them and the entire industry.
His goals concerning the auctions were to get Manheim and ADESA to join, and for the IARA to be as visibly connected to the NAAA as possible. Houston was able to convince the two auction chains to join and created a strong alliance with the NAAA that resulted, during his tenure, in initiating a partnership that elicited input from the Alliance to help in the completion of the NAAA’s grading policy and new arbitration standard initiatives.
Internally, Houston worked to make the IARA function more efficiently, creating an executive committee of the board of directors, which made recommendations to the board about policy and other business matters. With an eye to the future, he also further developed the Alliance’s succession plan, by receiving board approval to create the post of chairman.