ATLANTA – Manheim has reached an agreement with a Chinese counterpart to extend its auto auction operations into Shanghai, China. Shanghai Manheim Guo Pai Used Vehicle Auction Company Ltd. (Manheim Guo Pai) is a joint venture between Manheim China Holdings, a wholly owned subsidiary of Manheim, and Shanghai International Commodity Auction Company (Shanghai Guo Pai).
The joint venture is majority owned by Manheim and is led by a group of executives from both organizations, including: Xu Mianzhi, president of Shanghai Guo Pai and chairman of the China Association of Auctioneers; Wang Jian, assistant president of Shanghai Guo Pai; Mike Langhorne, senior vice president – international for Manheim and chairman of Manheim China Holdings; Neville Green, director of Manheim China Holdings; and Cliff Anderson, vice president of operations for Manheim Investment Management Consultancy (Shanghai) Company.
Manheim will provide physical auction and technology solutions, drawing on its products and services that have been fully developed in other markets and modifying them to meet vehicle market conditions in China.
China’s remarketing industry has gained some ground in the last few years with the release of new government regulations aimed at facilitating an open, yet dependable used-vehicle sector. One of Manheim Guo Pai’s chief tasks will be maintaining regulations at the auction level. Creating a reputable, secure medium to facilitate the buying and selling of vehicles with an open bidding environment will be very well-received, said Green, and will establish Manheim as the market leader. The auctions will also offer ancillary services such as rigorous inspections on vehicle ownership and condition, arbitration between buyers and sellers, fee collections and distribution, title transfers, reconditioning, marketing, and marshaling.
Manheim has experience in developing successful remarketing businesses in other international markets, including Canada, England, Scotland, Spain, France, Germany, Belgium, South Africa, Australia, New Zealand, and Thailand.
Manheim Guo Pai will operate in Shanghai, but Manheim plans to establish a national auction infrastructure in China either through wholly owned operations or additional joint ventures that will be serviced through Manheim Investment Management Consultancy (Shanghai) Company. The registered office is in Pudong.