OPINION By Kemel Cereceda Publisher of DealerTradeNews.com - Updated 11-28

Hi my name is Kemel Cereceda publisher of DealerTradeNews.com. First I would like to wish all of you a Happy Holiday Season. During this time it is important to show gratitude for all of our blessings and to remember the many who are facing difficult times.

I am also reflecting on two decades of the auto auction business and how it is changing. Manheim is no exception as they have closed various auto auctions across the country, the most recent closing being Manheim Imperial Florida auto auction in Lakeland.

It is my opinion that the day of the mega auto auction facility is coming to an end. Internet sales are the future and present. Brick and Mortar facilities may be a place to service and take delivery of the vehicles. Already about 20% of vehicles sold at auction are being sold on the internet. Big auto auctions are looking at their properties, seeing what they are generating and looking at what is more profitable: maintaining the sale or selling the property to raise cash?

There is a price to pay by employees, independent automobile dealers and small franchised dealers and the auctions as well. Many high salaried employees are being retired, others are laid off. New, less experienced employees are coming in. The ones that stay, have twice the work. Dealers are complaining about loss of relationships, service and returned phone calls. We all know the deal. Its not very pleasant. Former employees are bitter as the companies move on with the bean counters and leave out the car guys. At least this is the consensus among the dealers I speak to.

The day before Thanksgiving was one of the last days for the remaining office girl and skeleton security crew working at Manheim Imperial Florida auto auction. Soon they will work elsewhere.The former mammoth night sale attracted a large amount of exporters from Latin America and the Middle East. Already their sale has been moved to Orlando, Florida and is now called "Imperial Nights Sale" at Manheim Central Florida Auto Auction in Orlando. Many years ago the site was formerly the Orange County Auto Auction located at 1240 W. Landstreet Rd., an adjacent property to the Manheim Central Florida sale. The Ledger a Lakeland newspaper reported that 121 employees would be laid off by Nov. 26 (according to a state filing) and that the operations would move to 8025 N St Rd. 33 or the Manheim Lakeland auto auction (a day sale that runs mostly late model vehicles).

Imperial Auto Auction originally operated from a former gas station, one exit up the highway off I-4. Their sale was so successful Manheim built a brand new facility in 1996. Tim Janego was the General Manager at the time along with Steve Mason and Mark Albertson as assistants. The Grand Opening sale featured fireworks, balloons falling from the sky, live music and various contests. Retired racing great Harry Gant was present along with the Skoal Bandit. The sale would grow and run about 2,500 vehicles a night.

Today the new sale in Orlando runs about 450 cars. At its low point, Manheim Imperial Auto Auction was running about 700 vehicles each sale.

Many auto dealers and auction employees in Florida are concerned, this may not be the last of the closings. There are rumors that Manheim Daytona Beach may be next and concerns about smaller sales that are relatively close to larger facilities may be consolidated and the properties sold.

Who benefits from all this? Well the small to medium independent auto auctions benefit because of their relationships with buyers and sellers, as well as the internet only auto auctions who are looking to gain market share. Manheim protects their bottom line as they continue to be one of the largest sellers online of wholesale cars.