Auction Direct USA Plans Oxford, North Carolina, Vehicle Reconditioning Facility
The new subsidiary, a.i.m., will focus on supply chain solutions, providing both wholesale and retail-ready vehicles to the entire industry, including dealers and digital channels. The investment will establish a high-volume location to recondition these vehicles.
“The investment in Granville County in a.i.m., our used vehicle supply chain solutions company, marks an exciting expansion for us,” said Tim Frank, CEO of Auction Direct USA. “Every day, hundreds of vehicles expertly reconditioned by our technicians will be made available to our partners, strengthening the automotive supply chain up and down the East Coast.”
The project will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $393.6 million. Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $2,076,300, spread over 12 years. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
“North Carolina’s momentum in creating great jobs continues with Auction Direct’s decision to invest in Oxford,” noted Roy Governor Cooper. “Recent accolades for our business successes are fantastic, but there’s no better endorsement than when a company already doing business in our state decides to expand here.”
Because Auction Direct chose a site in Granville County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $230,700 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 2 county such as Granville, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“I’m pleased to see another company with experience doing business in our state deepen their roots here,” added N.C. Commerce Secretary Machelle Baker Sanders. “I’m confident Auction Direct will find all the ingredients they need to succeed in North Carolina, from our award-winning business climate to our state’s skilled and reliable workforce.”
Auction Direct USA operates an expanding network of highly differentiated, customer-centric used vehicle superstores. The company offers consumer financing, extended service agreements and vehicle protection and warranty products.
Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina (EDPNC) on this project were the North Carolina General Assembly, Granville County, and Granville County Economic Development.
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