Carvana Stock Soars As Atlanta 'Megasite' Integration Boosts Auction, Reconditioning Capacity

Carvana Co. CVNA shares are trading lower on Wednesday after the company announced its plans to integrate an auction and reconditioning “Megasite” at its existing ADESA Atlanta location.

This transition will see Carvana establish Inspection and Reconditioning Center (IRC) capabilities at the site while maintaining its digital and in-lane auction operations.

According to a press release, the integration aims to bolster Carvana’s production capacity and enhance its offerings for retail and wholesale customers in the region.

ADESA Atlanta, located in Fairburn, GA, serves as a logistics hub in South Fulton County, providing access to wholesale customers and linking seamlessly to Carvana’s broader operations.

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The auction site, with over 100 acres of space and nearly 12,000 parking spots, has been a hub for wholesale business for more than three decades.

As part of the transition, Carvana said it is hiring new IRC associates at the facility and expects the move to create around 200 new jobs over time.

Carvana’s Senior Vice President of Inventory, Brian Boyd, expressed enthusiasm about strengthening the company’s network in Atlanta, a city that holds historical significance for Carvana.

“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,” Boyd said.

The addition of IRC capabilities will expand the company’s reconditioning capacity, improving customer inventory selection and ensuring faster fulfillment times.

Retail customers will benefit from faster access to vehicles, potentially as soon as the same or the next day, while wholesale clients will see enhanced reconditioning operations.

Price Action: CVNA shares are down 1.6% to $195.15 at last check Wednesday.

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