Monday, Sep. 04, 2006, 08:00 PM UPDATED 11:59 AMBy Nick Zulovich
FAIRFIELD, Calif. -- Copart will be phasing out the non-salvage side of VB2, but before that happens, executives will work with business partners to fulfill all business obligations and provide a smooth transition, a Copart spokeswoman announced late last week. The spokeswoman stressed the fact that nothing will change with VB2 on the salvage side of the business.
The decision to phase out the non-salvage side of VB2 came in recent weeks after executives held several discussions. Given the significant success on the salvage side, Copart said it decided to center its resources on this core aspect of business.
"A few years ago, Copart launched our VB2 technology with a lot of excitement and success," explained Marla Pugh, a spokeswoman for Copart. "After seeing tremendous success in our existing business, we expanded VB2's business to include the wholesale market.
"While both sides of VB2 have been growing, VB2's phenomenal success in the salvage industry has overshadowed our growth in the non-salvage (wholesale) dealer auction industry," she continued. "As a result, we have decided to focus all our efforts on the Copart side of VB2 and no longer support VB2's non-salvage efforts."
Pugh said Copart will continue to work with business partners to make sure all obligations are met on VB's non-salvage side before this aspect of the business is completely phased out. The transition will be slightly different from partner to partner, depending on the needs, Pugh noted.
VB2 will continue to be housed at Copart's headquarters, and the company will be phasing out the management for the non-salvage side of the business once all obligations have been met. Once the phase-out is complete, dealers will no longer be able to use the product; however, business will remain as usual for the salvage buyers.
"We are working with our business partners on the non-salvage (wholesale) side of VB2 to make a smooth transition for everyone concerned, and we look forward to further success with VB2 in the salvage industry," Pugh concluded.