Essential information for end of life vehicle dismantling, depollution and recycling

Adam Hewitt
AutoDrain T
Email
Print

IAA – Shaking up the UK salvage auction market

With the announcement of IAA’s acquisition of SYNETIQ Ltd, which is currently pending UK Competition and Markets Authority (“CMA”) approval, the company are revisiting IAA’s debut in the UK market. June 2020 saw the arrival of a new big name in the UK salvage auction world. Almost a year after purchasing HBC Vehicle Services, the market’s longest-established online auction, its new owners, U.S.-based and publicly traded IAA, Inc. (NYSE: IAA), officially rebranded the UK business under the IAA banner.

IAA - Shaking up the UK salvage auction market fIAA may be a global leader in the total-loss, damaged and low-value vehicle auctions world, but its entry into the UK has been a respectful and organic process. Defying the clichés that big U.S. companies come into the UK market and assume they know best, IAA focused on building on and enhancing HBC’s existing operations, capitalising on local relationships and expertise cultivated over many years. 

In the end, IAA’s motivating desire has been to deliver a solution for its customers in the UK market. There’s no doubt IAA’s financial and technological muscle will continue to have a transformational impact on its own UK business and on the UK salvage auction market as a whole, regardless of the outcome of the CMA review process.

When IAA was looking to get involved in the UK market, it wanted to find a local operation with a strong track record and an established market presence. As a global technology leader, the most important aspect of any acquisition for IAA has always been finding the right people with the right knowledge and expertise. HBC fitted the bill.

It was then a question of taking the UK operation to a new level by gradually introducing some of the tools, technology and infrastructural resources IAA has built up in the U.S. and Canada – while respecting the unique features of the UK market. Meanwhile, a huge investment in new infrastructure and real estate has significantly expanded the capacity of IAA’s UK business.

The UK market is less consolidated than its North American equivalent, with a broader array of competitors. But, despite its scale and resources, IAA recognised from the outset that it would face healthy competition for market share and would need to differentiate its proposition clearly. 

Its advanced technology is obviously a part of that. For example, IAA’s UK operation already provides a market-leading level of insight into each and every vehicle – with 360-degree video inside and out and ten-second engine recordings for every vehicle with a working engine. The company’s main focus is on pursuing a partnership approach with UK buyers and sellers, leveraging its technology and expertise to help those partners work smarter, faster and more efficiently.

A robust, flexible and effective auction infrastructure is just the starting point for IAA. There’s obvious value in introducing smart automation at every point in the process. Beyond that, IAA defines its role as helping its partners interpret and benefit fully from data, empowering them with a clearer idea of how, where and when they would want to buy or sell. 

For example, sellers on IAA’s auction platform can quickly and easily understand which particular segments of their vehicle inventory are selling better on which particular channel, e.g. IAA Timed Auctions™, IAA Buy-Now™ or IAA AuctionNow™. IAA focuses on building trust by giving its partners every possible chance to transact successfully.

IAA believes that a serious commitment to transparency means highlighting, not just what’s working well, but also areas that could be working better. Resisting any temptation to be selective with what data is shared gives buyers and sellers the maximum opportunity to benefit.

Clearly, partner businesses in sectors like insurance and claims need little convincing of the value of a data-rich data-transparent environment. No matter where we sit in the process, we’re all becoming increasingly aware of the transformational power of data. Without it, decision-making and performance measurement are effectively just guesswork.

The approach, pioneered by IAA, will inevitably spread to the rest of the market. Buyers will gravitate toward auctions that inform their decision-making with quality photos, videos and detailed data on the vehicles offered for sale. They’ll demand consistent ease of use, dependable insight and value. The data-driven tide is rising, and ultimately all participants in the UK market stand to benefit.

Visit www.iaai.com or www.iaaiuk.co.uk 

SYNETIQ

More News

Adam Hewitt

ATF Professional is produced by ARW- Group LTD, which is registered in England and Wales with Company Number 14914439

The views and opinions expressed on ATF Professional are solely those of the original authors and other contributors. These views and opinions do not necessarily represent those of the editor, publisher or staff of ATF Professional.

Contact

01432 355099

© All rights reserved

Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

e2e awards logo

e2e Total Loss Vehicle Management [e2e] is the UK’s only salvage and automotive recycling network with nationwide, environmentally compliant sites delivering performance resilience and service reliability to the insurance and fleet markets.  The network’s online salvage auction www.salvagemarket.co.uk drives strong salvage resale values and faster sales.  e2e’s salvage clients have access to the network’s stocks of over 5 million quality graded, warranty assured reclaimed parts. 

The power of the network model means e2e has the ability to influence industry standards and is committed to continually raising the bar whilst redefining the role and perceived value of the salvage operator.  Network members adhere to robust service level agreements, against which they are audited, in order to ensure performance consistency and a market leading customer experience.  

The salvage and recycling operating environment is evolving rapidly, and e2e is anticipating, listening and responding to changing market needs.  Regulatory compliance, ESG, reclaimed parts, customer experience, EVs, new vehicle technologies, data and reputation risk are just some of many considerations linked to the procurement of salvage services.  e2e will drive further added value to clients and members through the adoption and application of emerging technologies, continuing to differentiate its proposition and position salvage services as a professional partnership. 

New Client Special Offer

20% Off

Aenean leo ligulaconsequat vitae, eleifend acer neque sed ipsum. Nam quam nunc, blandit vel, tempus.