Hyundai Glovis acquires GEAA to speed up entry into U.S. used car market

[Photo provided by Hyundai Glovis]

Hyundai Motor Group has acquired a full stake in U.S. vehicle auction dealer Greater Erie Auto Auction (GEAA) via its logistics unit Hyundai Glovis to speed up its entry into the global used car market with an aim to achieve 300 billion won ($211.1 million) in revenue in the U.S. market.

Hyundai Glovis said Tuesday its U.S. operation Glovis America Inc. has purchased a 100 percent stake in GEAA. The price was undisclosed under the terms of the agreement.

Pennsylvania-based GEAA has been engaged in vehicle auction since 2003. The number of vehicles it trades for a year reaches 20,000 units, based on a membership of 4,000 dealers.

Hyundai Glovis plans to introduce an online vehicle auction platform to GEAA business that currently relies on offline sale. With the change, it aims to operate six auction dealers in major cities of the U.S. by 2025 for annual revenue of around 300 billion won.

Hyundai Glovis shares were trading 0.61 percent lower at 164,000 won ($115.43) in Seoul trading at 10:54 a.m. Wednesday.

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