AutoTrader.com CEO Chip Perry to Step Down After 16 Years
Chip Perry, the founding CEO of AutoTrader.com, will leave the company on 1 May 2013, with Sandy Schwartz set to take over as president of AutoTrader Group.
Chip Perry, who has led AutoTrader.com since its launch in 1997, will resign as CEO on 1 May 2013. Perry, 59, has been the company's only chief executive, steering the online car marketplace from its early days to a business reporting over $1 billion in annual revenue. His departure marks a significant change for the company, as he has been closely associated with its growth and development from its inception.
Leadership Transition at AutoTrader.com
Sandy Schwartz, who currently serves as president of Manheim, will succeed Perry as president of AutoTrader Group. Schwartz, 60, will retain his role at Manheim, the auto auction company also owned by Cox Enterprises. Both AutoTrader.com and Manheim are part of the Cox portfolio, and Schwartz will report to Cox CEO Jimmy Hayes. This leadership change is notable as it places one executive at the helm of both major automotive businesses within the Cox group, suggesting a more unified strategy for their automotive services.
Perry's departure marks the end of an era for the online automotive marketplace. He was AutoTrader.com's first employee and became synonymous with the brand's rapid growth. Under his leadership, the company expanded its services and made key acquisitions, including VinSolutions, HomeNet Automotive and vAuto, strengthening its offering to car dealers and consumers. Perry's vision helped transform AutoTrader.com from a start-up into a dominant player in the online used car market.
No reason was given for Perry's resignation, and he was not available for comment. The company made the announcement through an official statement. This lack of public explanation has left industry observers speculating about the circumstances, but no details have been provided by AutoTrader.com or its parent company.
Recent Corporate Developments
The change comes at a time when AutoTrader.com has been active in corporate restructuring. In January 2013, the company withdrew a $300 million IPO registration, signalling a shift in its financial strategy. In April, AutoTrader.com raised $400 million in debt to pay a one-time cash dividend to shareholders. These moves have drawn attention within the industry, as they indicate significant financial manoeuvring and may reflect changing priorities or market conditions.
AutoTrader.com reported $1.2 billion in revenue for 2012, while Manheim posted $2.7 billion. These figures highlight the scale of Cox Enterprises' automotive holdings and underscore the importance of strong leadership for both companies. The revenue growth also reflects the increasing reliance of car dealers and consumers on digital platforms for buying and selling vehicles.
Cox Enterprises Consolidates Control
With Schwartz now leading both AutoTrader Group and Manheim, Cox Enterprises has further consolidated its control over its automotive services businesses. Schwartz will oversee a portfolio that spans vehicle listings, dealer software and wholesale auctions, reporting directly to Cox CEO Jimmy Hayes. This consolidation is likely to affect the strategic direction of both companies, potentially enabling greater integration of services and a more cohesive approach to the automotive market.
AutoTrader.com remains a major player in the US online used car market, and its recent acquisitions have positioned it as a key provider of dealer technology. The leadership change signals continuity at the top, given Schwartz's existing role within the Cox group. Industry analysts will be watching closely to see how Schwartz balances his responsibilities and whether further changes will follow as Cox seeks to strengthen its position in the automotive sector.
Recent Acquisitions and Business Moves
- Acquisition of VinSolutions, a dealer CRM and marketing software provider
- Purchase of HomeNet Automotive, specialising in inventory management
- Acquisition of vAuto, offering inventory management and pricing tools
These acquisitions, completed under Perry's leadership, expanded AutoTrader.com's reach beyond listings into dealer software and services. By integrating these companies, AutoTrader.com has adapted to changes in how dealers and consumers buy and sell vehicles online. The move towards providing dealer management tools and inventory solutions reflects the growing complexity and competitiveness of the automotive retail environment.
Perry's legacy includes not only the expansion of the company but also its ability to respond to industry trends and technological advancements. As the automotive marketplace continues to evolve, the foundation laid by Perry and the strategic direction set by Cox Enterprises will shape AutoTrader.com's future.
Looking Ahead
The transition in leadership at AutoTrader.com comes at a pivotal time for the company and the wider automotive industry. With digital platforms becoming increasingly central to car sales and dealer operations, the new leadership will face the challenge of maintaining growth and adapting to further technological change. Sandy Schwartz's dual role may bring new synergies between AutoTrader.com and Manheim, potentially benefiting both dealers and consumers.
While Chip Perry's reasons for stepping down remain undisclosed, his influence on AutoTrader.com's development is clear. The company is now positioned as a leading force in online automotive retail, with a strong technology portfolio and a significant presence in the US market. The next phase under Schwartz's leadership will be closely watched by the industry.
