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American automotive markets are facing huge challenges at wholesale and retail. Remarketers, Repossessors, Fleet Operations, Insurance Salvage and Finance verticals are facing uncertainty at near record levels. Success is harder and more elusive than ever. There is no rescue coming, no unified vision about the future. The uncertain market we are in now is the NEW NORMAL. For those of us who compete in related industries; How do we run our businesses? Can ‘we’ as industry leaders forecast our models, budget for recoveries, allocate for staff and navigate competition?
At ARS, as innovators, designers and managers, we urge our clients to examine their portfolios differently. If the market won’t provide relief, you need to find areas to maximize and optimize. In today’s complicated landscape, smart managers need to:
- Evaluate your Remarketing Process at every step.
- Understand your assets and cycle time.
- Segment your volume for optimization.
- Triage negative equity units early and aggressively.
- Identify logistics opportunities.
For many ARS clients, portfolio success often begins with focusing on the end of life vehicles (ELV’s), classically regarded as ‘scrap,’ ‘junk’ or ‘wrecked,’ that’s why we are calling this series of posts:
- Dealing with the distribution, and consumption of end of life and low value vehicles
To understand the ARS view of Wreckonomics we need to focus on more than just scrap, we need to broaden the discussion. To that end, we’ve prepared a series of blog posts focused on entire vehicle marketplace and the challenges and opportunities we see.
In coming posts, we’ll break down markets, look at segments and tools for success. Stay tuned or subscribe to our Wreckonomics posts below:
Just to give you a sample of what’s to come:
Wreckonomics 1.1 Overall Vehicle Landscape
Wreckonomics 1.2 Scrap Markets
Wreckonomics 1.3 Late Model Wholesale
Wreckonomics 1.4 Wholesale Markets & Older Vehicles
Wreckonomics 1.5 Segmentation and Tranche Value