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ATLANTA — Cox Automotive and Shift Technologies have announced they are launching a national strategic partnership, enabling the online vehicle retailer to utilize Manheim facilities and services to support its digital business.
According to officials, the relationship will help Shift expand operations with reduced capital investment and drive efficient launches in markets where Manheim has a presence across the country.
“We’re excited to partner with Cox, which enables us to provide more consumers access to Shift’s platform and services,” says Shift CEO George Arison. “By removing the need for us to lease facilities, build systems, and recruit teams for physical vehicle needs, we will significantly reduce our upfront investments and can instead focus on building incredible technology that makes car buying and selling simpler.”
To test drive the initial arrangement, Shift used Manheim San Diego for vehicle storage, reconditioning, imaging, inspections, detailing and more. As a result, according to officials, Shift processed vehicles more quickly and established a strong foothold in the area.
Shift now maintains an inventory of about 300 vehicles at Manheim San Diego. The company continues to operate its facilities in San Francisco and Los Angeles as it considers expansion into markets with Manheim facilities.
Investors responded well to this new, low-overhead approach last July when Shift raised $38 million in a funding round led by BMW iVentures. As a technology company simplifying the consumer car-buying and -selling experience, Shift differentiates itself in the marketplace by providing a hassle-free buying experience, complete with on-demand test drives and white glove service.
“There are many new players with innovative technology platforms entering the market, yet they still require physical infrastructure,” says David Liniado, vice president of new growth and development for Cox Automotive. “Our partnership with Shift is an example of how Cox Automotive can nurture and accelerate their go-to-market proposition or expand their footprint and inventory volume by incrementally leveraging our assets.”
Arison added: “Thanks to Manheim, we’re transitioning to a nimbler business model. Manheim’s national network and deep remarketing expertise, as well as solutions provided by other Cox Automotive brands, are integral to Shift’s plans.”
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