ADESA will not participate in an automotive remarketing industry initiative to establish a platform that would allow simultaneous bidding on vehicles listed on multiple online auction sites.
Manheim, ADESA, and the independent auctions began developing the system after announcing it at 2014 Conference of Automotive Remarketing (CAR). 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 February 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 multiplatform system would cause additional technological requirements and expenditures and could raise "new barriers to entry for smaller industry players," according to the statement.
Mike Broe, president and CEO of AASC, has said the multi-platform system would benefit customers by enhancing competition.