One of the UK’s largest car retailers has announced a joint venture with Leeds-based Cox Automotive. Auto Trader will transfer their retailer-to-retailer businesses to the new joint venture which is to be called Dealer Auction.
This online marketplace will be for wholesale vehicles in the UK, with Cox holding a 51% stake in the venture.
Auto Trader chief executive Trevor Mather said: “The way in which vehicles currently move around the UK automotive ecosystem is overly complex and inefficient, and Auto Trader has the digital and data assets that can make it a quicker, more convenient and cheaper process for all parties.”
Once combined, the online auction service will enable prospective buyers to visit one platform and view a large selection of wholesale vehicles across the marketplace.
This will provide fleet companies, manufacturers and retailers with a more efficient and convenient way to dispose of their stock of vehicles.
Mather added: “We know that we will have an even better chance of disrupting the market by partnering with an established player which knows this particular industry intimately.
“I am delighted that we are creating this joint venture alongside Cox Automotive, who we have found to be forward thinking and culturally aligned to our business.
“We believe that together we can fundamentally improve and lead change in this market, for the benefit of both wholesalers and retailers alike.”
The tie-up is expected to be earnings enhancing in the first year, Auto Trader said.