Mannheim Auto Auctions, the largest chain of automobile auctions in the U.S., primarily serves dealerships. In response to the rising significance of electric vehicles (EVs), they’ve introduced a crucial addition to their auctions: the EV Battery Health Report. This report aims to reassure dealers about the condition of the vehicle’s battery before purchase.
Investing in EV Infrastructure
The company is channeling a significant investment—$100 million—towards upgrading infrastructure, processes, and equipment specifically tailored to handle EVs. Grace Hong, the president, emphasizes the significance of batteries in EVs as the most financially impactful component. Their investment includes tools to generate health reports, which will be provided alongside the traditional vehicle condition reports to bidders.
Addressing battery anxiety
Hong underscores the prevalent “battery anxiety” experienced by potential buyers during bidding. To alleviate these concerns, Mannheim Auto Auctions is training technicians to process and manage EV batteries effectively. This training is vital due to the novelty of EV technology and the potential uncertainties surrounding battery conditions.
Evaluating Battery Health Factors
Technicians are trained to assess various battery health factors. These factors include measuring the energy flow in and out of the vehicle, the speed of charging and discharging, comparing the current range to the original range, determining the remaining warranty, and identifying the battery type.
Rolling out health reports
Initially, the health reports will be available at auction facilities with the highest volume of EVs. However, as the prevalence of EVs increases, the company plans to extend this service to other locations. This step aligns with their commitment to adapt auction processes to accommodate the influx of EVs into the market.
Revolutionizing Auction Dynamics
The recognition by the country’s largest dealer wholesale auto auction of the significance of evaluating EV battery health is pivotal. Ensuring that such information is communicated to buyers redefines the dynamics of purchasing decisions. Buyers can now make informed choices based on a vehicle’s value as determined by its condition and remaining battery life.