The subsidiaries, known as Auto Network Group, are located in New Mexico, Oregon and San Antonio. The new owner is Automotive Disposition Management Services Inc., a private Arizona corporation.
Officials with AutoTradeCenter referred calls regarding the size, location, and future plans for the San Antonio site, to the company's new owner ADM. Jules Galens, a director at ADM, says the 6,000-sf auto warehousing facility is located north of the San Antonio International Airport. Galens says about 150 to 200 cars are sold per month from that location and ADM has no plans to close the facility. A source from AutoTradeCenter says, however, that all land-based operations will be discontinued by year's end.
An ADM source says AutoTradeCenter is looking to improve cash flow, increase income and repay current debt. The company expects a loss of about $650,000 from the ADM transaction.
The purchase gives AutoTradeCenter 16% of ADM stock and a reduction of $1.2 million in long-term debt. AutoTradeCenter will continue a client partnership with ADM and assist ADM in listing, selling and purchasing vehicle inventory over the Internet.
The San Antonio land-based operation is one of three locations where AutoTradeCenter houses vehicles for wholesale purchase over the Internet. AutoTradeCenter markets its services to automobile manufacturers, finance companies, lease and rental companies, and financial institutions.
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