Manheim forms Beijing venture for vehicle resale

Shanghai, June 27 (Gasgoo.com) U.S. company Manheim, the world's largest provider of vehicle resale services, has entered Beijing for used-car auctions. Manheim yesterday formed a joint venture with Beijing Automotive Industry Holding Co. Ltd (BAIC). The venture, known as Beijing Manheim BAI Motor Vehicle Auction Co. Ltd. (Manheim BAI), is jointly owned by BAIC and Manheim China Holdings.

In the southern part of Beijing, Manheim BAI has built a one-lane facility for auctioning second-hand vehicles. The venture specializes in the wholesale of used vehicles by operating on a B2B platform. To maximize its corporate benefits, the firm doesn't encourage individual sellers or buyers to participate in auctions. In the future, Manheim BAI 'would expand into other businesses like finance, logistics and advertising,' said Joe Zhou, general manager of Manheim BAI.

The Beijing operation is the third China-based location of Manheim, who also has auction ventures in China's eastern city of Shanghai and southern city of Shenzhen, each with a different partner. It has auctioned 4,100 cars in Shanghai since November 2006, and 2,400 cars in Shenzhen since January 2007.

Manheim's partner in Beijing is Beijing Automobile Investment Co. the investment arm of BAIC, a major Chinese automaker who has manufacturing ventures with Daimler AG, Chrysler LLC, and Hyundai Motor Co.

Manheim, the second-largest unit of Atlanta-based Cox Enterprises Inc., holds physical and online used-car auctions for wholesale buyers and sellers. In 2007, Manheim handled nearly 10 million used vehicles in transactions worth more than $59 billion. It has 145 auction sites worldwide.