CARMEL,
Ind., Feb. 23, 2015
/PRNewswire/ -- ADESA, a business unit of KAR Auction Services
(NYSE: KAR), announced today that it will not proceed with a
currently proposed MPS for the auto remarketing industry. The
company has worked for nearly two years with major industry
partners and invested several million dollars in attempting to
evaluate and develop an MPS that would benefit both sellers and
buyers. Unfortunately, in light of the current competitive
landscape, technology challenges and expected antitrust issues,
ADESA has concluded it would not be prudent to further pursue this
initiative.
"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.
"While we remain very committed to supporting industry-wide
associations and initiatives that provide tangible value for our
customers, such as NAAA, IARA, AutoIMS, AuctionNet, AuctionAccess
and AutoGrade, MPS, in its current form, creates complex issues and
significant antitrust risks."
As currently structured, the proposed MPS would subject
market participants to heightened technology requirements and
expenditures. ADESA also believes the proposed MPS structure and
its associated economic and governance model poses antitrust risks
by raising new barriers to entry for smaller industry players,
reducing competition among the auctions and increasing costs for
sellers, buyers and ultimately retail consumers.
"After much deliberation, we have concluded that the
potential benefits to customers of the currently proposed MPS are
not commensurate with all of the costs and risks," said
Kelly.
"We are committed to investing our resources to the
benefit of our customers," said Stephane
St-Hilaire, chief executive officer and president. "As we
have publicly stated, we are focused on enhancing technologies for
our customers, expanding our geographic footprint and increasing
our online buyer network, which supports both physical and online
sales."
About ADESA
ADESA offers a full range of auction, reconditioning,
logistical, and other vehicle-related services to meet the
remarketing needs of both its institutional and dealer customers.
The company handles virtually every stage of the used-vehicle
lifecycle through its related subsidiaries of PAR North America,
RDN, AutoVIN and CarsArrive. Remarketing services include a variety
of activities designed to transfer used vehicles between
professional sellers and buyers.
ADESA hosts weekly sales at its 65 auction locations
across the United States,
Canada and Mexico. The company also builds and manages
online sale platforms for many major vehicle manufacturers. The
company's online auction venues include ADESA LiveBlock, which
simulcasts vehicles worldwide; and ADESA DealerBlock, which offers
two ways to buy: bid-now sales events or buy-now pricing 24/7.
ADESA is part of the KAR Auction Services family of companies.
Visit ADESA.com for details.
Darci
Valentine
darci.valentine@adesa.com
(317) 249-4414
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/adesa-announces-decision-to-not-participate-in-proposed-multi-platform-system-mps-initiative-300040000.html
SOURCE ADESA