Carvana Announces Auction-IRC ‘Megasite’ Integration in Atlanta Area

Rhea-AI Summary

Carvana (NYSE: CVNA) announced plans to integrate an Inspection and Reconditioning Center (IRC) at its existing ADESA Atlanta wholesale auction site, creating an auction-IRC 'Megasite'. The Fairburn, GA facility spans over 100 acres with nearly 12,000 parking spaces and will maintain both digital and in-lane auction operations while adding new IRC capabilities.

The integration is expected to create approximately 200 new jobs in the area and will increase Carvana's total reconditioning capacity. The Megasite will enhance local retail and wholesale customer experience by providing access to more vehicles with same or next-day delivery options. The transition will be facilitated by the site's existing infrastructure and Carvana's proprietary CARLI software system.

Positive

• Creation of 200 new jobs in the Atlanta area
• Increased production and reconditioning capacity
• Enhanced local inventory availability with same/next-day delivery options
• Leveraging existing 100-acre facility with 12,000 parking spaces
• Maintenance of existing auction operations while adding new capabilities

Negative

• None.

Insights

Market Research Analyst

The integration of IRC capabilities at ADESA Atlanta represents a strategic expansion of Carvana's operational infrastructure. The 100-acre facility with 12,000 parking spaces positions Carvana to significantly boost its reconditioning capacity in a key logistics hub. The creation of 200 new jobs indicates substantial operational scaling, while the dual-purpose facility (auction and IRC) optimizes asset utilization and operational efficiency.

The strategic value lies in Atlanta's position as Carvana's first market and its role as a critical logistics center. The integration enhances inventory turnover speed through same/next-day delivery capabilities and improved reconditioning capacity. Think of it as transforming a traditional car auction site into a modern automotive processing hub - like upgrading from a regular warehouse to an Amazon fulfillment center.

Supply Chain Expert

This Megasite integration masterfully addresses three critical operational challenges: production capacity constraints, logistics optimization and inventory velocity. By maintaining auction operations while adding IRC capabilities, Carvana creates a self-sustaining ecosystem where vehicles can seamlessly flow between wholesale and retail channels.

The implementation of Carvana's CARLI software system is particularly noteworthy - it's like installing a central nervous system that coordinates all facility operations. This technological integration enables real-time inventory management and standardized reconditioning processes across Carvana's network, important for maintaining quality control and operational efficiency at scale.

Financial Analyst

This strategic expansion carries significant financial implications. The Megasite model maximizes return on assets by combining auction and IRC operations, reducing facility overhead costs per unit processed. The proximity to Atlanta's logistics infrastructure should reduce transportation costs and accelerate inventory turnover.

The investment in CARLI software integration and facility upgrades, while requiring upfront capital, should drive operational leverage through increased throughput and efficiency gains. For investors, this represents a calculated move to enhance unit economics and market penetration in a key geographic region. The dual revenue streams from wholesale and retail operations provide additional financial stability and growth potential.

Carvana Adds Inspection and Reconditioning Center Capabilities to Existing ADESA Atlanta Site, Increasing Production Capacity, Creating Jobs, and Enhancing Offering for Local Customers

ATLANTA--(BUSINESS WIRE)-- Carvana Co. (NYSE: CVNA), an industry pioneer for buying and selling used cars online, today announced plans for an auction and reconditioning ‘Megasite’ integration in Atlanta. With this transition, Carvana will establish Inspection and Reconditioning Center (IRC) capabilities at its existing ADESA Atlanta wholesale auction site while maintaining all digital and in-lane auction operations. The integrated site will support Carvana’s continued growth by building overall production capacity and will also enhance the company’s offering for local retail and wholesale customers.

ADESA Atlanta is located in Fairburn, GA, a logistics hub in South Fulton County. Its central location is easily accessible to wholesale customers and connects seamlessly to Carvana’s regional and national operations. The auction site, which has served wholesale customers for more than 30 years, covers more than 100 acres and includes almost 12,000 parking spaces. Carvana has already begun hiring new IRC associates at this facility and expects the Megasite transition to create approximately 200 new entry-level and skilled jobs in the area over time.

“We’re excited to continue to strengthen our network by bringing Carvana Inspection and Reconditioning Center capabilities to ADESA Atlanta,” said Brian Boyd, Carvana’s Senior Vice President of Inventory. "As our first market, Atlanta holds a significant place in Carvana's history, and we have built a robust retail presence here over the years just as ADESA has established a strong local presence on the wholesale side. We look forward to providing an even better experience to all of our customers in the Atlanta community with this integration."

Adding IRC capabilities to ADESA Atlanta increases Carvana’s total reconditioning capacity, which improves selection for all customers. Adding a new pool of retail inventory to the Atlanta metropolitan area makes Carvana’s reconditioning and fulfillment network more efficient and gives local retail customers access to even more vehicles that can be delivered as soon as the same or the next day. Wholesale customers will continue to enjoy full in-lane and online auction functionality and will now benefit from even more robust reconditioning operations on-site.

ADESA Atlanta's efficient transition to an auction-IRC Megasite will be enabled by the site’s significant existing footprint and infrastructure as well as by its adoption of Carvana’s proprietary CARLI software, which enables efficiency, scalability, and consistency across its IRC network.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Carvana’s current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, strategy, future performance, and business. These statements may be preceded by, followed by or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook," "plan," "potential," "project," "projection," "seek," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning.

Forward-looking statements include all statements that are not historical facts, including expectations regarding our retail reconditioning capacities, job creation, real estate development, operational and efficiency initiatives and gains, our strategy, forecasted results, potential infrastructure capacity utilization, efficiency gains and opportunities to improve our results, including opportunities to increase our margins and reduce our expenses, expected customer patterns and demand, potential benefits from new technology, and our long-term financial goals and growth opportunities. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Among these factors are risks related to: our ability to utilize our available infrastructure capacity and realize the expected benefits therefrom, including increased margins and lower expenses; our ability to scale up our business; the larger automotive ecosystem, including consumer demand, global supply chain challenges, and other macroeconomic issues; our ability to raise additional capital and our substantial indebtedness; our history of losses and ability to maintain profitability; our ability to effectively manage our rapid growth; our ability to maintain customer service quality and reputational integrity and enhance our brand; the seasonal and other fluctuations in our quarterly operating results; our relationship with DriveTime and its affiliates; the highly competitive industry in which we participate, which among other consequences, could impact our long-term growth opportunities; the changes in prices of new and used vehicles; our ability to acquire desirable inventory; our ability to sell our inventory expeditiously; and the other risks identified under the “Risk Factors” section in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Carvana does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise.

About Carvana

Carvana’s mission is to change the way people buy and sell cars. Since launching in 2013, Carvana has revolutionized automotive retail and delighted millions of customers with an offering that is fun, fast, and fair. With Carvana, customers can find a car, get financing, trade-in, and complete a purchase entirely online with the convenience of delivery or local pick-up as soon as the same day. Carvana’s unique offering is powered by its passionate team, differentiated national infrastructure, and purpose-built technology.

For more information, please visit www.carvana.com.

About ADESA

ADESA is a leader in wholesale auto, providing comprehensive remarketing and logistics solutions that help OEMs, financial institutions, fleets, and dealers source, sell and manage cars efficiently and profitably. ADESA customers across the country enjoy access to its extensive physical auction network, robust digital offerings, and value-added services. ADESA is owned by leading online automotive retailer Carvana (NYSE: CVNA). Learn more about ADESA here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250108924464/en/

MEDIA CONTACT:

Carvana Communications

press@carvana.com

Source: Carvana Co.

FAQ

What is Carvana's new Megasite integration plan in Atlanta?

Carvana is adding Inspection and Reconditioning Center (IRC) capabilities to its existing ADESA Atlanta wholesale auction site while maintaining all digital and in-lane auction operations.

How many jobs will CVNA's Atlanta Megasite create?

The Megasite transition is expected to create approximately 200 new entry-level and skilled jobs in the Atlanta area over time.

Where is CVNA's new Atlanta Megasite located?

The Megasite is located in Fairburn, GA, a logistics hub in South Fulton County, at the existing ADESA Atlanta site.

What are the benefits of CVNA's Atlanta Megasite for customers?

The Megasite will provide increased vehicle selection, same or next-day delivery options for local retail customers, and enhanced reconditioning operations for wholesale customers.

How large is CVNA's new Atlanta Megasite facility?

The facility covers more than 100 acres and includes almost 12,000 parking spaces.