Communications of the Association for Information Systems


Manheim Auctions, the world's largest auction house, recently developed Manheim Online (MOL) to sell program cars (cars that have been leased or hired) in response to the Japanese company AUCNET's efforts to penetrate the US car auction business. This Internet-based electronic sales system has tremendous potential to change the car auction business. There are over 80,000 used car dealers in the US and Manheim auctions some 6 million cars each year. Trying to leverage its knowledge of the automobile market to provide services to its customers, Manheim developed two other products, Manheim Market Report and AutoConnect. It is also expanding its auction business in Europe. Manheim wants to continue to add value to Manheim Online as a way of discouraging competition and of extending sales through the Internet without cannibalizing Manheim's core business.





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