Bye Bye Auto Trader…
I used to work for the company, and was very shocked (well, sort of) from recent events.
So I found some information online, have been in contact with a lot of old co-workers, one of whom made it to the national cut, and will transition to AutoTrader.com.
As you’ll see in this article in the first link, they will be closing ALL AutoMart and AutoExtra publications in all markets, and shifting to strictly online. While the article STATES that they will be keeping all Auto Trader and Truck Trader Magazines that are currently running, still running, one of the survivors indicated on yesterday’s conference call, with Ian MacDonald, the Vice President of Sales Ops, in not so direct terms, that the Auto and Truck Trader titles will be eventually out too—that they are shifting them to strictly private party ads, but because that will shrink the books dramatically, and lack substantial content, it will give them their out to do away with them altogether. The only reason they are leaving them for now, is due to distribution/rack agreements with Dominion Enterprises/Landmark Media Enterprises. The second link indicates a pending lawsuit between the two companies, due to this whole mess.
The rep also said that Ian indicated that all reps coming over from AutoTrader/AutoMart will all be HEAVILY bonused on whatever business they can bring from where they were, onto the AutoTrader.com side.
Furthermore, according to the grapevine, the apparent reason for the final doing-away with the print components, is due to the fact that in recent months, when AutoTrader.com/Cox Auto Trader was put up for sale and then taken off, was because they were contacted contacted by big companies like Yahoo, Google, as well as some other large companies, with POSSIBLE interest, but no one was interested in the print division. By doing away with that division now, it will make them a better product overall to sell to either company, or to any other high bidder.
There’s also speculation that they will group together any and all print debts under the Cox Auto Trader/Auto Mart division (which of course includes AutoMart.com and AutoExtra.com), separate AutoTrader.com out into its own completely separate entity more-so than it is now, and file bankruptcy, leaving only AutoTrader.com remaining, and leaving an entity with little-to-no debt—prime to put to market.
This in itself would obviously mean bye-bye AutoMart.com and AutoExtra.com(which was already known), and would make sense, as with the cancellation of their print products, their databases would shrink IMMENSELY, with no more basic feeds from print. And who would sell it? The print reps who sold for them before are gone by January 23rd. And the reps going to AutoTrader.com (only 140 or so out of like 1400 sales reps), are being bonused to take business AWAY from the other units, AutoMart/AutoTrader/AutoExtra.
For example, the majority of Auto Mart listings in my area come from the book, as their online penetration is MUCH weaker than their print penetration. The listings now in our area will be a joke…
The links below:
For dealers who are getting tired of the on-going Trader Publishing saga (separating Auto’s and Commercial Trucks), the Cox Auto Trader saga (Auto Trader versus AutoMart versus AutoTrader.com), and the continued, unreasonable price increases, my advice is simple:
Look to your LOCAL forms of classified advertising…they are market-based, they have their own brands and reputations, hopefully have been around for a while, and in turn, have business models that will keep them strong and in play for a long time to come, without succumbing to corporate greed.
Good luck to all! (Dealers and Auto Trader and Auto Mart victims.)