HOFFMAN ESTATES, Ill. -

Speaking to a crowd gathered for the grand opening of the company’s Chicago auction last week, ADESA president and chief executive officer Stéphane St-Hilaire emphasized the importance of brick-and-mortar auctions to the company.

Building a $40 million facility in the nation’s third-largest metropolitan area is certainly one way to show that.

St-Hilaire also emphasized in that speech, however, that ADESA’s online offering is something in which the company places a great deal of importance, too.

That’s evident in parent company KAR Auction Services announcing that recently that it will put between $20 million and $25 million into upgrading its online sales platforms over the next three years.

This approach of investing in both online and brick-and-mortar was clear at ADESA Chicago, where the “hybrid model” of a physical and Web presence takes center stage as a means to serve the customer.

“It’s a reflection of our approach to the market,” St-Hilaire said in an interview with Auto Remarketing at the grand opening of the auction.

For example, near the auction blocks are digital displays with lights, announcements and other bits of information. The point, says vice president of auction operations Kurt Madvig said, is to make sure that the dealer in the lane — whether he or she is tech-savvy or not — has the same easy access to information to the person bidding online, simply by looking at the screens.

In a news release ahead of the opening, St-Hilaire called ADESA Chicago the company’s “most integrated, customer-centric and technologically advanced physical auction.”

He added in that release: “Everything at ADESA Chicago was designed around our customers to deliver a more efficient, convenient and personalized auction experience. This state-of-the-art facility, paired with our customer-first approach and end-to-end vehicle remarketing services, fills an unmet need for car dealers in the Illinois, Wisconsin and Indiana markets.”

Speaking of those places, ADESA Chicago’s location in Hoffman Estates is a plus, as well, says ADESA chief operating officer Paul Lips. It’s easy access, he said during an interview here.

Located northwest of the city, ADESA Chicago is 23 miles from O’Hare International Airport and is between six interstate systems.

The Chicago area also includes KAR’s Insurance Auto Auctions and Automotive Finance Corp. business units, each of which has a presence here. All told, the parent company has seven locations within 40 miles of the Windy City.

The new auction is one of several moves by ADESA to increase its physical footprint. The company purchased all eight of the Brasher’s auction locations in 2016, expanding ADESA’s presence in the West, Sanford Auto Dealers Exchange in Florida; and Flint Auto Auction in Michigan.

In expanding to the Chicago market, St-Hilaire said it made more sense to build rather than acquire, given the market’s landscape. 

For more on ADESA Chicago's grand opening, see Part I of this story.