Auction Direct USA, an operator of a network of used vehicle superstores, will expand its operations in North Carolina by locating a new high-volume vehicle reconditioning facility in Granville County, creating 173 jobs. The company will invest $2.9 million in Oxford.
“North Carolina’s momentum in creating great jobs continues with Auction Direct’s decision to invest in Oxford,” said 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.”
Auction Direct USA was formed in Rochester, New York in 2004 as a traditional used vehicle retail superstore, and has existing retail operations in Raleigh, NC. With this new subsidiary, called a.i.m., the company is expanding into supply chain solutions, providing both wholesale and retail-ready vehicles to the entire industry, including dealers and digital channels. The company’s project in Granville County 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.”
“I’m pleased to see another company with experience doing business in our state deepen their roots here,” said 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.”
The North Carolina Department of Commerce led the state’s support for the company during its site evaluation and decision-making process.
Although wages will vary depending on the position, the average salary for the new positions will be $88,258. The current average wage in Granville County is $48,653.
Auction Direct USA Raleigh, LLC’s project in North Carolina 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.
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.
“North Carolina and Granville County are outstanding places to do business, and Auction Direct’s site decision proves this once again,” said N.C. Senator Mary Wills Bode. “This company is an innovative force in their industry, and we welcome the new energy and enthusiasm they will bring to our community.”
“All of us in Granville County and Oxford extend a warm welcome to Auction Direct,” said N.C. Representative Frank Sossamon. “We stand ready to help the company’s executive team and their employees connect with the many resources available in our community to ensure the company will enjoy many years of success.”
The Economic Development Partnership of North Carolina would like to recognize the North Carolina Department of Commerce as well as other key partners involved in this project, including the North Carolina General Assembly, Granville County, and Granville County Economic Development