Manheim Auto Auction: A History of Automotive Remarketing
The landscape of the modern automotive wholesale industry was largely shaped by the evolution of Manheim Auto Auction. From its humble beginnings in a small Pennsylvania building to becoming a global leader in vehicle remarketing—the process of selling used vehicles to maximize value—Manheim has mirrored the growth and digitalization of the car trade.
Early History and Rapid Growth
Manheim Auto Auction, Inc. was established in 1945 by five partners: Arthur F. Walters, Ben Mellinger, Jake Ruhl, Paul H. Stern, and Robert Schreiber. The company started in a decrepit building on seven acres south of Manheim, Pennsylvania. Its first sale was modest, offering three cars and selling only one to the general public.
The business model shifted in 1947 when it became a dealer-only enterprise. This strategic pivot fueled rapid expansion, and by 1959, Manheim had grown into the largest auto exchange in the United States. By 1966, it achieved global volume leadership, operating a 16-lane auction that could move 45 vehicles per hour, or up to 700 cars and trucks on a single Friday night.
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During the mid-1960s, the company expanded its footprint through strategic acquisitions, purchasing the National Auto Dealers Exchange in Bordentown, New Jersey, in 1965, and the Fredericksburg Auto Exchange in Fredericksburg, Virginia, in 1967.
Integration with Cox Enterprises
A major turning point occurred in 1968 when Cox Enterprises entered the auto auction sector by purchasing Manheim Auto Auction. Under the stewardship of Cox, Manheim diversified its offerings beyond simple auctions, providing dealerships and wholesalers with essential automotive services, including recovery, auto hauling, and reconditioning (the process of repairing and detailing a vehicle for sale).
As the 20th century drew to a close, Manheim embraced the digital revolution by integrating information technology to facilitate online sales. This synergy extended to other Cox assets; today, Cox Enterprises owns 98% of Auto Trader, a premier provider of automotive consumer information in both print and online formats.
Expansion into Global Exports
In 2006, Manheim turned its attention toward the international market through an interest in Akinvest Inc. Founded in 1991 by Andrei Kouznetsov, Akinvest began as a firm speculating on global automobile values. Kouznetsov developed a specialized system allowing foreign dealers to have vehicles delivered to the port nearest to the buyer, with Akinvest handling all necessary procedures.
By 2005, Akinvest—operating as Exporttrader—had become a leader in exporting used cars from North America. Its infrastructure was so robust that other major remarketing firms, including Copart, IAA, ADESA, and Carfax, utilized Akinvest/Exporttrader to complete foreign transactions.
The company's expertise was backed by advanced programming, automated websites, and extensive data banks. This technical proficiency led the Canadian and U.S. governments to consult Akinvest on new export programs, and international law enforcement agencies sought their expertise on global irregularities. By 2008, the organization employed 70 people across offices in Toronto, Moscow, and Finland, serving as the parent company for Freightmar International and ExportTrader.com.
The Transition to Global Trader
In January 2009, a staged buyout of Akinvest/Exporttrader began, rebranding the organization as WES Exporttrader. The transfer to Manheim was finalized in late 2014. Shortly thereafter, in April 2015, Manheim closed the Canadian offices and centralized operations in Atlanta, launching a new entity called Global Trader.
However, this international venture faced challenges. By the end of March 2016, Manheim Global Export was sold. Burdened by significant debt, the entity eventually declared bankruptcy.
Key Facts
- Founded: 1945 in Manheim, Pennsylvania, by five partners.
- Growth Milestone: Became the largest U.S. auto exchange by 1959.
- Parent Company: Acquired by Cox Enterprises in 1968.
- Export Leadership: Integrated Akinvest/Exporttrader to dominate North American used car exports.
- Digital Shift: Transitioned from physical lanes to online sales and integrated with Auto Trader.
| Period/Year | Key Event | Outcome |
|---|---|---|
| 1945 | Company Formation | Started as Manheim Auto Auction, Inc. |
| 1947 | Business Model Shift | Became a dealer-only enterprise. |
| 1968 | Cox Acquisition | Expanded into reconditioning and hauling. |
| 2009-2014 | Akinvest Buyout | Formed WES Exporttrader. |
| 2015 | Centralization | Launched Global Trader in Atlanta. |
| 2016 | Divestiture | Manheim Global Export sold and later bankrupt. |
Frequently Asked Questions
Who founded Manheim Auto Auction?
The company was founded in 1945 by five partners: Arthur F. Walters, Ben Mellinger, Jake Ruhl, Paul H. Stern, and Robert Schreiber.
When did Manheim become a dealer-only business?
Manheim transitioned to a dealer-only enterprise in 1947, which helped it become the largest auto exchange in the U.S. by 1959.
What is the relationship between Manheim and Cox Enterprises?
Cox Enterprises purchased Manheim Auto Auction in 1968 and has since expanded its services to include automotive reconditioning, hauling, and online sales integration.
What was the role of Akinvest in Manheim's history?
Akinvest (doing business as Exporttrader) was a leader in North American used car exports. Manheim acquired the company through a staged buyout between 2009 and 2014 to expand its global reach.
What happened to Manheim Global Export?
After moving operations to Atlanta and rebranding as Global Trader, Manheim Global Export was sold in March 2016 and eventually declared bankruptcy due to excessive debt.