SEOUL -- Hyundai Glovis, the logistics wing of South Korea's Hyundai auto group, acquired Greater Erie Auto Auction (GEAA), a U.S. dealer in vehicle auction, to turn it into an online-oriented auction house by gradually introducing digital technologies such as a multi-channel network auction system and augmented reality.
GEAA would be Hyundai Glovis' wholly-owned subsidiary, but financial terms were not disclosed. Utilizing its geographical advantages, ease of use, and cheaper fees than other auction houses, Hyundai Glovis will expand and strengthen GEAA's sales power to new areas such as Cleveland and Pittsburgh.
Hyundai Glovis said it would gradually increase GEAA's business, establish six auction houses in major U.S. cities by 2025, and carry out businesses in all areas of used cars such as wholesale, retail, and exports through the connection of auction houses to achieve about 300 billion won ($210 million) in annual sales.
"GEAA's local know-how will be combined with Hyundai Glovis' global logistics, distribution, network, and professional auction house operation capabilities to create business synergy," an unnamed Hyundai Glovis official said in a statement on October 4.
Hyundai Glovis jumped into the used car auction market in 2001. In March 2020, the company launched a cloud-based digital auction system for used car dealers to provide information in the form of 3D augmented reality and 360 degrees images so that clients can closely examine and buy vehicles using PCs and smartphones.
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