InsideNews

5 NAAA’s April Webinar on Structural Damage Available Online 6 NAAA Auctions Mark Milestone Anniversaries

8 Answers and Insight from Condition Report Writers 9 2012 Auction Sales Tops $72 Billion • 74% Complete Auction Industry Survey 10 Get to Know the NAAA Website – www.naaa.com 12 2013 Annual Convention Keynote Speaker - Lou Holtz • Meet & Greet in Exhibit Hall - Archie Griffin 13 NAAA Services Corporation Returns $1.3 Million to NAAA Members 14 Auction Standards Training 15 2013 Scholarship Winners 16 Day On The Hill • Preparing for 2014 Convention 17 President’s Travels

Innovation and quality customer service comprised the curriculum for the National Auto Auction Association’s Leadership Institute Class of 2013, which graduated this April from the two-day program pre-sented by The Disney Institute in Orlando, FL.

Last year’s inaugural lead-ership training session proved to be such an outstanding success with the sold-out seminar’s 100 students that it was brought back by popu-lar demand.

“Once again, the event exceeded expectations with a waiting list of par-ticipants and the professional presenta-tions by the Disney staff,” stated Tricia Heon, NAAA Legislative and Information Manager. “This year focused on Disney’screative processes, its approach to customer service and philosophies of business operations.”

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Learning the Business Secrets Behind the Disney MagicThe leadership training began Sunday evening with the presentation “Inspira-tion to Innovation,” where the secrets of Disney’s famous “Imagineers” were

revealed. The speaker explored how the same ideas can be used to boost creativity and innovation in any business to meet the challenges of the rapidly changing 21st century.

Monday morning, students learned about Disney’s time-tested model for delivering world-class customer service and how

to adapt those ideas to their businesses. The session included lessons on how to create a corporate culture that supports consistent deliver of services and design-

ing qual-ity service standards to raise the level of customer satisfaction.

Then, after lunch, the class received a three-hour behind the scenes tour to examine how Disney’s five core business principles are applied every day for both guests and cast members in the run-ning of the Walt Disney

World Resort’s daily operations. The class discovered some tools and techniques for building long-term customer rela-tionships that drive repeat business and brand loyalty, developing inspirational leadership that can motivate staff to achieve greater results, and creating a supportive enviroment.

Spring 2013

2012-2013Board of Directors

Paul Lips President

ADESA Corporation

Jack Neshe President-ElectADESA Boston

Ellie Johnson Vice President

Manheim North Carolina

Jay CadiganExecutive Vice President

Manheim

Charlotte PyleChairman of the Board

Capital City Auto Auction

Dave AngelicchioTreasurer

Pittsburgh Independent Auto Auction

Warren ByrdSecretary

ADESA Corporation

Warren Young, Sr.President-Emeritus

Chad BaileyAkron Auto Auction

David BlakeAuto Auction of New England, Inc.

Doug BrasherBrasher’s Idaho Auto Auction

Mike BrowningManheim Mississippi

Warren ClaussADESA Buffalo

Daryl DeVriesGreater Kalamazoo Auto Auction

Doug DollKCI Kansas City

Steve KeslerKesler-Schaefer Auto Auction, Inc.

Rich NeweyBrasher’s Sacramento Auto Auction

John OdorisioManheim New Jersey

John PoteetLouisiana’s 1st Choice Auto Auction

Bill SmithADESA Little Rock

On The Block is published by the National Auto Auction Association (NAAA) for the use of its

members, and for companies and individuals active in the wholesale vehicle industry. Auction members,

associate members, and others may submit feedback, article ideas or information to:

National Auto Auction Association5320 Spectrum Drive, Suite D

Frederick, Maryland 21703301-696-0400 • 301-631-1359 fax • naaa@naaa.com

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Paul Lips President

President’s MessageIn Celebration of Delivering Value Every Day

As we celebrate this 65th year of the National Auto Auction Association, I’d like to recognize some of the distinctive qualities that truly make NAAA member auctions the undeniable leaders in the remarketing of used vehicles.

Just one of the many areas that deserves to be highlighted is the vehicle inspec-tors, whose accurate and thorough docu-mentation of a vehicle’s condition are relied upon by all facets of the industry to conduct business. Writing condition reports requires the up-to-date knowledge and skill covering a wide range of issues including inspection and mechanical basics, vehicle sections, interiors, flood and hail damage, restraints and collision estimating guidelines.

A condition report follows a car for its lifetime and has a major impact on services, grade and pricing for the seller, the amount of work on the vehicle that

must be performed by the auction and, ultimately, the confidence level of the buyer when purchasing a vehicle — especially online. The staff members who inspect vehicles and write CRs bear the responsibility of creating both the first impression and final word on reputation of an auction.

I urge you to read on page 8 the brief interviews with four people who represent those working in those important CR positions — Fred Graham, Steve Kotta, Eugene Mullins and Tom Sessa — to see how they meet challenges and deliver value on the frontline of our industry every day.

But whether it’s through the most expe-rienced vehicle inspectors, full service multi-acre auction facilities or latest technology (such as online and simulcast auctions and inventory management/financial tracking systems by individual VIN numbers), NAAA member auctions provide industry leading solutions and a level of expertise that is unmatched when it comes to the remarketing of used vehicles.

Since 1948 our members have been innovating and delivering solutions to maximize value for consignors and to improve the efficiency with which assets are turned into cash. Through strategic relationships within the vehicle remar-keting industry, we bring confidence and integrity to the auction process and maintain thousands of relationships with buyers that fill the auction lanes and online channels day in and day out. As a result of the millions of transactions we process annually, we are also able to deliver real-time market values that are the best available in the industry. Now that’s something to celebrate. n

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Frank Hackett Chief Executive Officer

CEO’s Message

65 Years as an Association — 75 Years as an Industry

When the National Auto Auction Protection Association (National Auto Auction Association) was created in 1948, the auction industry was just a decade old and numbered about

eighty auctions in the United States. Like most great entrepreneurial success stories, this one began with a simple but brilliant idea – If auctions could be successful sell-ing livestock, machinery, farm products and other goods, why not cars?

At least that was the idea that popped into the head of J.M. “Martin” Rawls one spring day in 1938 as he attended a cattle auction in Columbia, South Carolina. Rawls was the co-owner of Rawls Auto Sales, a used-car outlet in Leesville, South Carolina. When he suggested the idea of an auto auction to his more skeptical partner, S.L. “Monty” Mont-gomery, Montgomery didn’t think much of the idea but agreed to go along with it.

With Montgomery registering the vehicles and tending to the office, Rawls worked the ring and renowned auctioneer “Col.” R. H. Sapp banged the gavel. Rawls Auto Auction held its first sale in March 1938. About 35 curious dealers attended the historic sale where cars were run through the lobby of an old, two-story theater building on Main Street in downtown Leesville. Recalling the

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“struggle we had getting it started,” Mont-gomery says with a chuckle, “I don’t think we had but about twelve or fifteen cars at the first sale. I always tell people we had about thirty-five, but the truth is, we ran ‘em by two or three times.”

Still, the results were good enough for Rawls and Montgomery to clear out the garage and set up an auction booth for an every-Monday sale…and an industry was born. n

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Join In The Celebration

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Later that evening, at a grand celebration dinner, all graduates were awarded a Disney Institute Certificate along with a special desktop memorabilia trophy designed by the artists who created the

Academy Awards’ Oscar, a golden statuette of Mickey Mouse appropriately called “The Mousecar.” An illumination show at Epcot Center brought the event to a spectacular end.

“The Disney Institute is a first-class organi-zation that provides the best training in the world” noted Frank Hackett, NAAA’s chief executive officer. “They made our second Leadership Institute as worthwhile and valu-able as our first experience last year.” n

Learning the Business Secrets Behind the Disney Magic Continued from cover page

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NAAA’s April Webinar on Structural Damage Available OnlineHour-long program featured discussion with Manheim Director of

Operational Excellence Matt Arias, co-chair of the NAAA Standards Committee

More than 300 registered attendees participated online in the National Auto Auction Association’s webinar on the proposed revisions to the NAAA Structural Damage Policy. Held in April, a recording of the presentation is now available at the website, NAAA.com.

The program, hosted by NAAA CEO Frank Hackett, featured a review and discussion of the proposed revisions by Matt Arias, the director of operational excellence for Manheim who co-chairs the Association’s Auction Standards Committee.

A highlight of the hour-long conference was the 40-minute Q&A session where Arias addressed questions submitted by the webinar attendees. At Manheim, Arias is responsible for operational support and continuous improvement activities of

lot operations, vehicle entry and arbitration departments, and serves as the intermedi-ary for arbitration claims and mediation.

The NAAA Structural Damage Policy defines and clarifies terminology associated with structural damage and specifies the disclosure requirements of the seller for vehicles offered at NAAA affiliated auctions. It is intended to provide adequate disclosure to the buyer for informed purchase decisions and to limit arbitrations for the seller. This policy, along with the main Arbitration

Policy, serves as the primary criteria for all arbitration proceedings.

To hear what Arias and Hackett had to say, you can view their entire discussion of the proposed revisions to the structural damage policy by going to the Association’s website at NAAA.com and clicking the blue webinar recording link on the home page. You can also review a digital edition of the policy with the proposed revisions highlighted in red online. n

Matt Arias

Instructor Matt Arias marked-up a demonstration car to highlight structural damage during the education session “Everything You Wanted to Know About NAAA Structural Damage Policy” at the 2013 NAAA CAR Conference.

.naaa.comWebinar Recordings Available

NAAA (Proposed) Structural Damage Policy RevisionsObamaCare - What Auctions Can Expect in 2013 and Preparing for 2014

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NAAA Auctions Mark Milestone Anniversaries The country’s longest-running auto actions celebrate milestone anniversaries in 2013, including the grand-daddy of them all,

Rawls Auto Auction in Leesville, SC, which marked its 75th year in May. With anniversary celebrations in the making, the owners and managers at nine NAAA-member auctions with 55-, 60-, 65-, 70- and 75-year anniversaries reflect on their roots as well as the secrets to their success and longevity, while looking forward to building for the future.

Like many great American success stories, Rawls Auto Auction was born as the result of a simple but brilliant idea that came to Martin Rawls while he was attending a live-stock auction in the late 1930s. “If auctions work for cows, why not cars?” he wondered, and in March of 1938 a new industry was born when a Ford Model A was the first car to cross the block at Rawls Auto Auction. Today, Martin’s son Jimmy runs a thriving business located on 40 acres that has come a long way from its early beginnings in a downtown theater building. The auction held a 75-year anniversary celebration on May 14th, where customers were appreciatively greeted and supplied food in the lanes all day, with a chance to win a $25,000 cash giveaway. “The history and accomplishments of Rawls Auto Auction are very important, but as an independent auction in the 21st century, we must excel in customer service, stay on the cutting edge of technology and continue to be innovative as the industry changes,” says Jimmy Rawls. “I’ve been involved in the busi-ness for over forty years, and have a good sense of where we came from and where we want to be in the future. Doing more in the coming year than we did the year before and offering quality service is essential to the growth of our business.”

Opening just a few months after Rawls Auto Auction in 1938 was the Greenville Auto Auc-

tion, now America’s Auto Auction – Greenville, SC. With its roots in the livestock trade (founded by P.L. Bruce as a horse and mule business in 1933), the facility held its first auto auction in September of 1938 with 12 employees and 42 vehicles, all of which sold. By the 1970s, the auction had expanded to four lanes and was one of the first seven auctions in the country to sell for General Motors. In 2005 the auction was purchased by America’s Auto Auction, which has built on the auction’s reputation as one of the top marine and RV auctions in the country and has significantly expanded its car and truck inventory.

“As one of the oldest auctions in the country, we celebrate every week,” says Ben Lange, President of America’s Auto Auction, Inc. “If I were to identify the ‘secret sauce’ that has made us successful, it is that we provide great service, have promo events every week, and have a great team working with our custom-ers every day. ”

Manheim Darlington’s 70-Year Anniversary Celebration coincides with the NASCAR Sprint Cup Series in Darlington, SC, so May 9th was a big day for auction custom-ers as they mingled with representatives from the race teams and watched the NASCAR parade that passes right in front of the auc-tion on sale day, reports Ryan Mason, auction general manager. “Our anniversary is always a huge week at Darlington, as dealers arrive from all over the East and stay for the week to attend the auction and enjoy the race.”

Founded in 1943 as Dealers Motor Auction by the Clanton family, the auction pioneered the practice of guaranteeing checks and titles, and grew into one of the country’s leading auto auctions, selling over 2,100 vehicles a week by 1988. Sold to General Electric in 1987 and then to Manheim in 1991, the auc-tion retains its down-home feel, shaped by a big dose of Southern hospitality. “It’s still a family affair here at Manheim Darlington,” says Mason. “We have employees who have been here for 25, 35, even 40 years, and it’s not uncommon for me to have a conversa-tion with a dealer who has been coming here since he was a teenager, who talks about his grandfather, in some cases even his great-grandfather, who did business at this facility. It’s great to have that kind of loyalty, and we

owe it to our customers to provide them with the tools they need to be successful.”

Also celebrating 70 years in 2013 is Kesler-Schaefer Auto Auction in

Indianapolis, IN, which opened in June of 1943, selling 12 cars inside a rented tent on a filling station lot. Owner Ken Schaefer built his auction into a thriving business while also helping to form the NAAPA – National Automobile Auction Protective Association

– which later became the NAAA. In 1956, Ken’s son-in-law, Jack Kesler, took over the business. With friendly and fair treatment for all of his customers, Jack built the business

up from handling 50 cars each week to its present volume of selling over 26,000 a year. Jack’s son, Steve Kesler, joined the auction in 1978 to help insure that the “family” treat-ment would continue at KSAA well into the next millennium.

“The KSAA family is extremely proud to be celebrating our 70th year in the auto auction business,” says Steve Kesler. “Even though we’ve witnessed tremendous changes in our industry over the years, we remain commit-ted to a few core principles that were estab-lished in 1943 by our founder, Ken Schaefer, and continued to this day by the Kesler fam-ily. Every day we strive to be honest and fair

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to every customer big or small. We deliver what we promise, and we treat our staff and customers like part of our family. “

In 1948, as everyone hummed Zip-A-Dee-Doo- Dah and witnessed the historic signing of Jackie Robinson to national league baseball,

Greater Quad City Auto Auction opened its doors in Coal Valley, IL, just a few miles from its present location. By the early ’60s, the tune had changed to rock ‘n’

roll, and the auction moved to East Moline, IL, where 125 vehicles were consigned each Tuesday evening. By 1995, the auction had expanded to two weekly sales, and in 1999 moved to a new 64-acre site where today it runs more than 1,000 vehicles a week on six lanes.

“Our auction’s success starts with the integrity and hard work of all of our great employees, to which we’ve added advances in technology that are becoming increasingly important in order to meet the needs of our customers,” notes Larry Anderson, auction owner and general manager. “The digital age makes communicating faster, more convenient and more efficient, but we still depend on and cherish the personal relationships we have built with our many dealers and commer-cial accounts over the years. Business goes to where business is invited, and we invite everyone to do business at The Greater Quad City Auto Auction!”

Founded in 1953, Flint Auto Auction has been a family business in every sense of the word. On sale day, third generation owners and employees greet third generation customers, proving that 60 years of treating others with respect has created a great envi-ronment to conduct business. The original auction owners – Ray Williams and his son Bill “Mac” McCollum, and Howard and Ed Lynch – launched the auction’s first sale in April 1953 with 120 vehicles. The auction grew steadily thereafter and developed a

reputation for exceptionally clean late model cars and highly ethical business practices. Within a year the Lynches had left the busi-ness, and in 1983 McCollum sold his stock to the Williams family; by the end of the 1980s the third generation of the Williams family was active in the business: John Williams III, Bill Williams, Jr., and John Luce. As the Flint Auto Auction prepares for its 60th anniversary celebration on Wednesday, June 12th, Bill Williams Jr. reflects on the values upon which the business was built. “I sin-cerely believe that the foundation of our 60 years of success is integrity. This is a timeless value that endures and creates prosperity for everyone regardless of the current technol-ogy or methods of selling automobiles,” says Williams. “One pearl of business wisdom

that we learned from Grandfather Ray was to ‘always leave something in the deal for the other guy’; in other words, every business transaction must be ‘win-win’ in order to maintain a healthy business relationship. And, looking back on 60 years and looking forward to the future, maintaining healthy enduring business relationships is what we are all about!”

Known today as Manheim Nashville auction opened in April of 1953 in a Quonset hut on 4 acres, capitalized with just $5,000, and selling 42 vehicles at the first sale. Sale fees were just $10, and there were no buyer fees. Tom Beasley, one of the original owners, became sole proprietor in 1957 and worked with other auction owners to help form the NAAA, attending the Association’s first organizational meeting, held in Nashville, TN, in 1955. It was Beasley’s habit to leave a few auction brochures on the registration desk when attending NAAA conventions, and in 1979 the chairman of British Car Auctions picked up one of those brochures to get some ideas on how US auctions were run. As a result, the auction became the first auction acquired by Anglo American Auto Auctions in

1982. It became part of the Manheim group in 2000, and moved to an all-new facility in 2002 that doubled its size and selling capacity. Manheim Nashville plans a 60th Anniversary Celebration and Dealer Appreciation Day this summer, reports Sam Chaple, the auc-tion’s general manager. “The loyalty of our customers, particularly our dealers, has made this auction strong for six decades, and we want to recognize the role they play as we celebrate this milestone anniversary,” says Chaple. “By the same token, we acknowledge the experienced, well-seasoned members of the auction team whose contributions are vital to our ongoing success here in Nash-ville. We are fortunate to have employees who not only handle the business of the auc-tion well, but work hard to create a friendly, inviting atmosphere that brings customers back week after week, year after year. We just said farewell to an employee who retired after working here for 55 years. When you work with people with that kind of longevity, you know that the auction is ‘home’ in more ways than one!”

Manheim Palm Beach is the oldest auction in South Florida. Founded by William B. Kemp, a former car dealer who left Ohio for the sunshine state in 1958, the auction opened on the Palm Beach County Fairgrounds. In 1966 a new 3-lane facility was built on the fairgrounds and, although considered state-of-the-art when originally built, the doors to the building were so small that the side mirrors on trucks had to be folded back in order to pass through. On a Sunday night in 1981, the building burned to the ground, but the auction pitched a big cir-cus tent and held a sale just 4 days after the fire. The auction remained in the tent until the building was rebuilt, and never missed a sale. Sold to Anglo American Auto Auctions in 1984, the auction was acquired by Manheim in 2000.

To mark its 55th anniversary, the auction held a “Premier” sale in April, a trifecta which opened on Tuesday with a Hundred Grander sale: 160 vehicles worth $100,000 or more. The next day featured an Exotic Highline Sale, and it was followed on Thursday by the auction’s regular weekly consignment sale. Dealers ar-rived from far and wide for the event, extend-ing their trip through the weekend to attend the Barrett Jackson sale in Palm Beach, which took place just across the street. “Whether our customers are locally based, or whether they’re

NAAA Auctions Mark Milestone Anniversaries Continued from page 6

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Answers and Insight from Condition Report WritersA job that builds client confidence, insight, and stakes an auction’s reputation

Eugene Mullins, Condition Report Trainer at Manheim Statesville How long have you worked at the auction? I’ve worked at Manheim Statesville for over 16 years. During this time, I’ve held various roles including inspector, condition report writer, supervisor and currently condition report trainer.

What is your biggest challenge? I’d say that balancing training and operational requirements in the most effective way possible can be challenging. The best part is working on important products that benefit our industry, such as Electronic Condition Reports, that have become critically important to customers as they buy online.

What do you enjoy about your job? Working with others and seeing them grow and develop when learning new concepts.

How do you keep current on all makes and models? Manheim’s focus on process excellence and quality ensure we stay updated on all vehicle makes, models and related changes/differences such as frame types, vehicle requirements and mechanical issues. In addition, Manheim’s commitment to ongoing training including CBT, WebEx seminars and bulletins ensure we continue to improve our skills while keeping our inspectors informed.

Fred Graham, Coordinator for GSA Account at Auto Auction of New England How long have you worked at the auction? I have worked for the Auto Auction of New England for five years.

What is your biggest challenge? The weather is my biggest challenge. If is it beautiful out, it’s a pleasure. If it is raining or snowing it is a bear. What do you enjoy about your job? I enjoy the physical action with the vehicle. I like figuring out the damages and then doing the calculations with the online software. I actually enjoy vehicles with a lot of damage as it’s a challenge to find all of the damages and calculate the total.

How do you keep current on all makes and models? My enthusiasm for the car business alone keeps me current. I am a car guy so it is a love of the job. I am always excited about new models coming out. We also use an online estimating program which is very useful.

Steve Kotta, Regional Training Manager at ADESA

How long have you worked at the auction? Just over eleven years. I started in 2001.

What is your biggest challenge? I think the biggest challenge is dealing with the various account guidelines and estimating. The estimating is so subjective and there are a lot of factors that need to be considered. Good estimating comes with experience.

What do you enjoy about your job? The thing I enjoy most about my job is that you get to become an investigator. Every vehicle is different. You get to look at the history of the vehicle and look for clues. I like the investigative part the most.

How do you keep current on all makes and models? A lot of times we rely on the manufactures to post that informa-tion. We also refer to the NAAA website for new information on vehicles.

Tom Sessa, Condition Report Supervisor at Bel Air Auto Auction

How long have you worked at the auction? Almost three years.

What is your biggest challenge? The biggest challenge is training our writers to be technically knowledgeable to accommodate a wide range of clientele in a changing market.

What do you enjoy about your job? The CR department has the unique position of protecting the buyer while enhancing a product and assisting the seller.

How do you keep current on all makes and models? We do regular training and department meetings pertaining to any new specific make or model issues and changes. We use several industry resources for obtaining new information and utilize NAAA for additional training and industry standards.

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2012 Auction Sales Tops $72 Billion

Last year the wholesale auto auction industry experienced an increase in both volume and sales for the first time since the recessionary decline began in 2008, with National Auto Auction Association members selling 7.9 million used vehicles worth $72.7 billion, according to NAAA’s annual industry survey.

The results also show the number of vehicles entering auction lanes rose by 6.4 percent to 14.6 while the conversion rate slipped down 1.7 percent.

Dealer Consignment vehicles represented the largest number of units sold at 58.4 percent followed by Finance and Fleet (lease/fleet/repo) accounting for 34.5 percent and Manufacturer (Factory) vehicles comprising 6.6 percent with other sources making up the remaining 0.5 percent.

NAAA’s 16th annual industry survey finds rise in volume and sales, other positive signs“The data from this survey is very encour-aging, especially given the strain the indus-try has been under for the past five years,” says NAAA Chief Executive Officer Frank Hackett. “It shows there was some upward movement last year with many promising indicators pointing to stronger growth and a substantially improved 2013.”

He adds that another positive sign can be found in the fact that despite the sluggish economy the typical NAAA member auction currently operates an 8-lane facility on 79 acres, employs an average of 140 people with a payroll of $3.4 million and donates $13,000 annually to charity.

Conducted by the independent CPA firm CliftonLarsenAllen, LLP, of Arlington, VA, for the Association, the survey provides the most accurate picture available of the wholesale auto auction industry with 74 percent of NAAA’s 314 member auctions responding.

“It’s interesting to note that in the 16 years we’ve being doing this survey, our member auctions have been responsible for the total sale of 145 million vehicles,” Hackett observes.

NAAA President Paul Lips draws this main conclusion from the survey’s statistics — working together makes a difference. “In the final analysis, I believe the improving picture revealed by the survey is due to the dedicated auction owners, their hard-work-ing staff, along with the loyal consigners and buyers all standing together in tough times,” he says. “Uniting in our efforts to advance the industry for the benefit of all provided the strength to meet the chal-lenge of the recession and will continue to ensure our success regardless of what the future may bring.” n

74% Complete Auction Industry SurveyEvery auction owner or general manager of a member auction who completed the auction in-dustry survey will receive two complimentary room nights at the JW Marriott hotel in Indianapolis, IN, during the Association’s

65th annual convention

September 3-5, 2013. The rooms are nontransferable. Information for claim-ing the room nights was sent out in April to those who qualified. The 2012 survey was offered to members electronically for the first time. A small group representing all NAAA members met in Washington, DC and customized the survey to simplify the Q&A process. For information and questions, contact Tom Dozier at dozier@naaa.com.

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NAAA Auctions Mark Milestone Anniversaries Continued from page 7

dealers who travel to attend our special events, we work hard to build solid relationships,” says Ron Parker, auction general manger. “We want every customer to be comfortable doing busi-ness here, whether they’re dealing with a clerk, a driver, an auctioneer or the general manager. We work hard to make sure that we focus on the customers, and to look for ways to make it easier for them to do business with us.”

The Columbus Fair Auto Auction was opened in December of 1958 in the agriculture/ horticulture building at the Ohio State Fair-grounds by William “Bill” Jacobs. Operated as a 2-lane sale in the early days, the auction had

to move during the weeks of the Ohio State Fair, selling at a small airport nearby, some-times at a ballpark, even at a racetrack. The operation outgrew the fairgrounds in 1977 and moved to a 65 acre location just off the outer belt in Columbus. When Jacobs died in 1982, his daughter Alexis took over the busi-ness, which has 11 auction lanes and includes a technology center that allows customers to buy and sell from multiple locations.

“We know that to be competitive, we have to embrace technology, and we have an amazing array of technological tools at our disposal at Columbus Fair Auto Auction,” says Keith Whann, auction CEO. “When the auction was founded, every bit of information was processed by hand. Today, with a hand-held device, we can check in a vehicle, assign a lot number, scan a bar code for the vehicle’s details, take 10 photos of the car, and have all the information online within minutes. But, the secret to our success is our people,” he emphasizes. “We’re a service business, first and foremost. There are certain things you never compromise on and every customer is important. It may sound like a cliché, but the person who sells one car is just as important as the dealer who sells a lot more. We’re fortunate in that our company’s culture makes that a reality every day.” n

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Legendary Football Coach Lou Holtz to Give Keynote Speech at 2013 Convention

Archie Griffin – Two Time Heisman Trophy Winner to Meet & Greet Convention Attendees

Lou Holtz, one of the most winning college football coaches of all time, will share his “Game Plan for Success” as the keynote speaker at the National Auto Auction Association’s 2013 Convention this September in Indianapolis, IN. The Hall of Fame member, ESPN sports ana-lyst and best-selling author will deliver his address on Wednesday, Sept. 4, during the opening luncheon.

In a legendary career spanning five decades, Holtz is the only coach in col-lege football history to lead six different teams to bowl games, guide four various programs to the final top 20 rankings and have four different college teams in the final Top 20 poll. Despite never inheriting a winning team, he compiled a 249-132-7 record and chalked up 12 postseason bowl victories, earning him a spot in both the College Football Hall of Fame and the Cotton Bowl Hall of Fame.

Holtz, who grew up in East Liverpool, Ohio and graduated from Kent State University, began his coaching career as a graduate assistant at the University of Iowa where he earned his master’s degree in arts and education. His first head coaching position was at the College of William and Mary, followed by positions with North Carolina State, the New York

In 1974, Ohio State tailback Archie Griffin became just the fifth junior ever to win the Heisman Trophy. In 1975, Griffin became the first player ever to win a second Heisman. Twenty-nine years later he is still the only player to have two of the coveted bronze statues, which go annually to the nation’s top college football player. more info: www.naaa.com

ANNUAL CONVENTION2013

IND IANAPOL ISIND IANAPOL IS

Lou Holtz

Jets, the University of Arkansas, the University of Minnesota and Notre Dame.

When he took over as Notre Dame’s 27th head coach in 1985, he brought with him a proven reputation as a fixer of football pro-grams following a series of spectacular repair jobs at his previous schools. He led the Notre Dame Fighting Irish to an undefeated season and the 1988 national championship before leaving after the 1996 season.

After spending two years as a commenta-tor for CBS Sports, Holtz arrived at the

University of South Carolina, where he received National Coach of the Year hon-ors from “Football News” and “American Football Coaches Quarterly” in his second season. His six years spent in Columbia helped turn around the Gamecocks’ football program by posting AP Top 25 finishes in 2000 and 2001.

Holtz and his wife Beth had an impact at USC beyond the football field. The two established an endowment at the Thomas Cooper Library to provide for the addi-tion of library materials and resources for undergraduate students. The couple also made substantial gifts to Columbia’s win-ter homeless shelter, which was renamed in their honor a year before he retired in 2004.

Today, Holtz is a college football analyst for ESPN, a motivational speaker and has written or contributed to 10 books, including his several best-sellers, Win-ning Everyday: A Game Plan for Success and Wins, Losses and Lessons.

Holtz also serves on the Catholic Advisory Board of the Ave Maria Mutual Funds and is a champion of charitable and educa-tional causes, including libraries, the Juvenile Diabetes Foundation and centers for the homeless. n

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NAAA Services Corporation Returns $1.3 Million to NAAA Members

Incentive Program Criteria:

2012 set a new mark for auctions partici-pating in the NAAA AuctionNet incentive program. In June of each year, auctions are recognized for contributing their sales data to the program.

The NAAA AuctionNet program is an agreement between NAAA and NADA whereby NAAA auction members provide sales data relating to the auction of used vehicles in return for royalty payments to NAAA. Auction members participat-ing in the program receive an incentive

payment of $2,500 per year based on established program criteria. To date, NAAA has given back to auction members $1.3 million. “The amount returned to auctions will surpass $1.8 million when the next round of checks are issued in a few weeks,” states CEO Frank Hackett. n

1. Must be a North American Auction member.2. The incentive period is counted in 52 weeks, January 1 – December 31.3. Participation level must be 75% or greater during the 52 weeks. 4. Data must be transmitted by auction to NADA on time to meet NADA’s deadline. Note: If an auction agreed to transmit data by April 1 and transmitted on time every week until December 31, 2013, the auction would qualify for incentive. 5. If an NAAA member auction is purchased by another member auction during incentive period, incentive goes to NAAA member auction holding ownership of the auction on December 31.

2012 Annual ReviewAvailable as a pdf or view online at www.naaa.com

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Matt Arias

DAY 1

Condition Report Writing Class

DAY 2

Structural Damage Policy Class

• Inspection Basics

• Vehicle Makeup

• Vehicle Sections

• Interiors

• Restraints

• Auto Body & Refinishing

• Flood & Hail Damage

• Mechanical Basics

• Collision Estimating Guides

• Frame Types

• The Collision

• Repair vs. Replace

• The Inspection

• Policies & Guidelines

The Auction Standards Training Program delivers two full, information-packed days of hands-on training for condition report writers and arbitration managers. Day One provides comprehensive in-struction on writing condition reports, covering a wide range of issues including inspection and mechanical basics, vehicle sections, interiors, flood and hail damage, restraints and collision estimating guide-lines. The second day presents a thorough review of the structural damage policy.

Classes are taught by Matt Arias, director of operational excellence for Manheim, who is responsible for operational support and continuous improvement activities of lot operations and vehicle entry and arbitration departments. In addition, he serves as the intermediary for arbitration claims and mediation. Arias also co-chairs the NAAA Standards Committee.

• Manheim Dallas __________________ July 25-26, 2013

• Greater Milwaukee Auto Auction ____ September 16-17, 2013

• Manheim Riverside _______________ December 4-5, 2013

Auction Standards Training Dates, Locations & Time

Registration Fee(s)

DAY 2

DAY 1 & 2

DAY 1 Condition Report Writing — $385

Structural Damage Policy — $385

Condition Report Writing & NAAA Structural Damage Policy Classes — $700

Registration Fee Includes: Continental Breakfast, Lunch, and Manual(s) Thank You ADESA Boston for Hosting the May 7-8 Auction Standards Training Program

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2013 NAAA Warren Young, Sr. Scholastic Foundation Scholarship Recipients The NAAA Warren Young, Sr. Scholastic Foundation, Inc. makes available each year to NAAA member auctions and corporate offices 12 scholarships totaling $40,000 to eligible full-time employees, their children and grandchildren. Congratulations 2013 scholarship students!

American Auto Auction Group, LLC Scholarship

Auction Broadcasting Company Scholarship

Black Book Scholarship

Manheim Scholarship

Southern ChapterScholarship

Midwest ChapterScholarship

Western ChapterScholarship

Ruth Hart-Stephens MemorialScholarship

Carolina Auto Auction Scholarship

Kayla Barker

Kristen Caggiano

Marina Pettinicchi

Madison Taylor

Leah Boyd

Lauren Cole

Baylie Smith

Elise Tilton

Shannon Budworth

Aracely Gonzalez

Nicole Rodriguez

Jennifer Wolfsohn

Indiana Auto Auction Scholarship

Auction Insurance Agency Scholarship

Black Book Scholarship

Major: Elementary Education North Carolina State University

Major: Exercise Physiology University of Massachusetts Lowell

Major: Community Health SUNY College at Cortland

Major: AccountingSiena College

Major: Computer Science University of Georgia

Major: Psychology Washington State University

Major: Undecided University of Pennsylvania

Major: Medical Sonography Valencia College

Major: Communicative Disorders University of Alabama

Major: Psychology/ Pre-Med University of Southern California

Major: Education Spokane Falls Community College

Major: Mathematics University of Southern Mississippi

Parent: Jerry Barker, Greensboro Auto Auction, Inc.

Parent: Michael Caggiano, ADESA Corporation

Parent: Jackie Pettinicchi, ADESA Long Island

Parent: David Taylor, ADESA Syracuse

Parent: Ed Berni, ADESA Corporation

Parent: Russ Smith, Dealers Auto Auction of Idaho, LLC

Parents: Kevin Tilton and Catherine Davis- Tilton, Central Maine Auto Auction

Employee of ABC Orlando Auto Auction

Parent: Ruth Kugue, America’s Auto Auction - Dallas

Parent: Phillip Wolfsohn, Manheim Milwaukee

Parent: Kevin Budworth, DAA NorthwestParent: Eric Boyd, Oak View Auto Auction

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President-Elect Jack Neshe prepares for the 2014 Annual Convention with film crew in Boston.

Front row, left: Tricia Heon, NAAA Legislative and Information Manager; Jay Cadigan, NAAA Executive Vice President, Industry Relations, Manheim; Charlotte Pyle, NAAA Chairman of the Board, Owner-Capital City Auto Auction; Ellie Johnson, NAAA Vice President, General Manager-Manheim North Carolina; Paul Lips, NAAA President, Executive Vice President, Operations and Finance, ADESA; Jack Neshe, NAAA President-Elect, General Manager-ADESA Boston; Dave Angelicchio, NAAA Treasurer, Owner-Pittsburgh Independent Auto Auction; and Frank Hackett, NAAA Chief Executive Officer

Back row, left: Racquel White, Vice President, Communications and Corporate Affairs-Manheim; Peter Saldamarco, Owner-Central Auto Auction; Joe Pyle, Owner-Mountain State Auto Auction; Chuck Redden, President and Chief Executive Officer-AutoTec; Steve Krupa, Owner-Morton Auto Auction; Ray Vickers, Owner-Farmington Auto Auction; Karyn Wrye, NAAA Legislative Committee Co-Chair, Senior Director Government Affairs-Manheim; Kristie Griffin, Owner-Greater Milwaukee Auto Auction, and Michelle Mallon, NAAA Legislative Committee Co-Chair, Vice President of Legal-ADESA

NAAA members attended the Day On The Hill in Washington, D.C. with Congressman David McKinley (R-WV) to discuss the auto auction industry.

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President Travels in May to Member Auctions in Texas

Left: NAAA President Paul Lips; Auction General Manager Jeffrey Dunning, and NAAA President-Elect Jack Neshe

Left: NAAA Chief Executive Officer Frank Hackett; NAAA President Paul Lips; Auction Manager Bill Roberts; Auction General Manager Ken Osborn, and NAAA President-Elect Jack Neshe

Left: Auction Sales Manager Ben Nash; NAAA President Paul Lips; Auction Operations Manager Tommy Rose; Auc-tion Controller Susan Shuttlesworth; Auction Sales Representative Cherie Slaughter; Auction General Manager Buddy Cheney, and NAAA President-Elect Jack Neshe

Left: NAAA President Paul Lips; Auction General Manager Nichole Graham-Ponce; Auction Assistant General Manager Bonnie Williams; NAAA President-Elect Jack Neshe, NAAA Chief Executive Officer Frank Hackett

Left: NAAA President Paul Lips; Auction President and Chief Operating Officer Ben Lange; Auction General Manager Robert Hammonds, and NAAA Presi-dent-Elect Jack Neshe

Left: NAAA President Paul Lips; Auc-tion Manager Jim Shreeve, and NAAA President-Elect Jack Neshe

Left: NAAA President Paul Lips; Auction General Manager Rich Curtis, and NAAA President-Elect Jack Neshe

Left: NAAA President-Elect Jack Neshe; Auction General Manager David Robert-son, and NAAA President Paul Lips

Left: NAAA President Paul Lips; Ameri-ca’s Auto Auction President and Chief Operating Officer Ben Lange; America’s Auto Auction Chief Financial Officer Dustin Miller; America’s Auto Auction Chairman and Chief Executive Officer Richard Gundy; NAAA President-Elect Jack Neshe, and NAAA Chief Executive Officer Frank Hackett

Texas Lone Star Auto Auction

America’s Auto Auction - North Houston

ADESA Dallas

Manheim Dallas-Fort Worth

Houston’s 1st Choice Auto Auction

America’s Auto Auction - Dallas

Manheim Dallas

Manheim Texas Hobby

America’s Auto Auction - Headquarters

continued on page 18

Now you can enjoy the same piece of auto auction history that hangs in the headquarters of the National Auto Auction Association while showing your support of the NAAA Political Action Committee.

For your $65 donation, NAAA is offering a full color print of the 1958 oil painting, “Pennsylvania Auto Dealer’s Exchange,” by Guy V. Glatfelter, stepfather of P.A.D.E.’s co-founder, the late Jacob B. Hershey. Donated by his son Jake Hershey to the Association, the painting depicts auctioneers Alvin Miller and Charles M. Bachman in action on the block along with Hershey as interested buyers inspect a car sporting that era’s iconic tail fins!

The print measures 18 x 24 inches and is suitable for framing. For more details and contribution information, email Tricia Heon at theon@naaa.com. All proceeds to benefit NAAAPAC.

Support the PAC and Get a Print!

Left: Auction E-Commerce Manager Wim Van den Bulck; Auction Staff Accountant Angela Garcia; Auction Lot/Operations Manager Tracy Graham; Auction Factory Manager Kristi Roberts; Auction General Manager Mark Lindenmuth; Auction Dealer Sales and Service Manager Kjersta Loyd; Auction Commercial Accounts Manager Rob Frazier; NAAA President Paul Lips; Auction Mechanic Shop/Arbitration Manager John Richardson; Auction Transportation Manager Brad Brooke; Auction Office Supervisor Chris Nolden; NAAA President-Elect Jack Neshe, and NAAA Chief Executive Officer Frank Hackett

Left: NAAA President Paul Lips; Auction General Manager Steve Green; Auction Market Vice President Barry Roop, and NAAA President-Elect Jack Neshe

Left: NAAA President-Elect Jack Neshe; Auction General Manager Joe Lavigne; Auction Vice President Dave Pratt, and NAAA President Paul Lips

Left: NAAA President-Elect Jack Neshe; Auction General Manager Steve Swin-ford; Auction Vice President Isaac Wil-liams, and NAAA President Paul Lips

Manheim Houston Houston Auto Auction

ADESA Houston

United Auto Auction

President Travels in May to Member Auctions in Texas Continued from page 17

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19www.naaa.com • email: naaa@naaa.com • 301-696-0400

National Auto Auction Association5320 Spectrum Drive, Suite DFrederick, Maryland 21703301-696-0400 • Fax 301-631-1359

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ANNUAL CONVENTION2013

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2013 Annual Convention

REGISTER @ www.naaa.com

SEPTEMBER 3-5 • JW MARRIOTT INDIANAPOLIS