List of Vehicles Pulled from Auctions Expands
FREDRICK, Md. — On Friday, the National Auto Auction Association announced a slight expansion to the list of vehicles that it recommends no longer be sold at auction. The list now includes a model from General Motors — 2009/2010 Pontiac Vibes, to be specific.
In a statement sent out Friday, NAAA included a notice from GM Remarketing that says, "We have been directed to hold any 2009/2010 Pontiac Vibes.
"Therefore, please pull or hold these vehicles from your closed or open sales until otherwise notified. This would include any postings of these units on SmartAuction," the statement added.
Apparently, the Vibe is built on the same platform as the Toyota Matrix.
In other news from the NAAA on Friday, officials sent out a notice from Toyota Financial Services confirming a temporary halt to auction sales of eight Toyota vehicles involved in the recall for sticking accelerator pedals.
These models include:
Certain 2007-2010 Camry
ALG Touches Upon Impact to Toyota's Perceived Quality, Residuals
Late Friday, ALG announced that it is predicting a slight drop in residuals for Toyota models over the next 36 months.
More specifically, Matt Traylen, ALG's chief economist, said, "One of the measurements ALG uses to identity overall brand value is the consumers' perception of brand quality. As a result of Toyota's recall notices prior to Wednesday's announcement, ALG forecasted Toyota's Perceived Quality Score to decline by 5 percent over the next three years, resulting in a small 1 percent residual value decline over the next 36 months.
He went on to say, "Toyota's latest situation needs to be remedied quickly and without future recalls. If this is achieved, then it should have minimal impact to perceived quality. If not achieved, Toyota's PQS will decline further," he continued.
In fact, company officials said they believe the risk of Toyota's PQS dropping even further is at about 20 percent, which if occurs, would result in a 4 percent decline on residual values.
Officials noted that the next PQS survey is in February, with results released in early March.
Auctions moved quickly last week to pull the eight Toyota models from sales once the NAAA put out its recommendation to cease selling these units.
Over at Manheim, officials released a statement that said, "Manheim will fully comply with the NAAA's position and halt sales at our locations in North America and on OVE.com. We are committed to supporting Toyota during this challenging time."
Meanwhile, ADESA is also complying with the recommendation. This includes all 47 U.S. sites, 13 Canadian sites and two in Mexico.
"Toyota has been a long-standing customer, and we will work closely with Toyota's management to resolve this issue," said ADESA president and chief executive officer Tom Caruso.
"For the safety of our employees and our customers, we have instructed all of our auction locations throughout North America to halt the sales of the affected vehicles at this time," he added.
Furthermore, Jason Hockett, of ABC, told Auto Remarketing on Thursday, "Not only have we received recommendation from NAAA to halt sales of the Toyota vehicles in question, but also we have received requests from many of the major finance and lease companies we sell for at ABC to put a hold on these vehicles.
"From a liability standpoint, ABC has recommended to management of our nine locations to honor the requests of the NAAA," he added.
ServNet, which represents many independents throughout the country, has also adopted NAAA's recommendation.
"The ServNet Auctions fully support the recommendation of Dave Angelicchio, NAAA president, and are committed to doing all that we can to assist Toyota, its dealers, and our various customer groups that regularly consign Toyota product for sale at our member auctions. We are certain that the automaker will address this issue quickly," said Jeff Brasher, ServNet president.
"Of immediate and primary concern, in ServNet's position, is the issue of safety at our member auto auctions. Until the situation has been addressed, we have advised that these affected vehicles not be driven either around the lot or across the auction block. We will certainly be sensitive to any consignor (dealer or institutional account) that has an urgency to liquidate inventory, and accommodate them as appropriate," noted Pierre Pons, ServNet's CEO.