SHERMAN OAKS, Calif. — It's not been easy these past six months, admitted Mark Chandler, president of Autoland Inc., the auto buying CUSO resource for hundreds of credit unions nationwide, most notably in California, Oregon and Washington. "We've felt the bad economy here as much as anyone, but things are looking great. We had a good month for us. So far we've sold 500 cars and 46 today."
Autoland seemed to have survived the Ides of March, and Chandler said it has turned a corner. That turn was not without some pain, he said, with the CUSO forced to downsize a bit. "We did a company restructure because we had to position ourselves for today." That euphemism is often business-speak for layoffs, and Chandler said that the restructure meant going to 130 employees from 160. "Now, as our business grows, we'll rehire and grow with it," he added.
Chandler stressed that Autoland was different from other auto services available to CUs. "We're a concierge model. We're different from CUDL in that way. We negotiate directly, and we're a more direct source, but we're also one of the top six or seven CUDL dealers in our territory. So it's not exactly like we're in competition with CUDL, we use their tools as well. We're just different."
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Autoland partners with some 150 credit unions in its three-state operating area. "These are tough times, it's true but we'll get through this and keep our core group together. We're involved with our partners and want to be responsive to their needs. Here in California, cars can be a status symbol, and we are often the leading edge of trends that move across the country."
Chandler said that owing to the economy and the rising price of gasoline he's seen demand for hybrids skyrocket. "While our new car sales are flat, sale of used cars is up and now we can't keep hybrids in stock. There's a huge demand for these cars while the big SUVs are struggling."
Chandler said that hybrid resales with a high-occupancy vehicle sticker that allows a sole driver to use the HOV lane are especially prized.
Autoland recently added California Agribusiness Credit Union to its list of equity partners when it bought into CU Vehicles LLC, and the holding company for Autoland Inc. It is expected to be the first of several offerings to potential future equity owners, the company maintains. As a result, Adam Denbo, California Agribusiness CU CEO, will join the board of directors.
"We want to continue to help credit unions acquire loans through this direct channel, while continuing to differentiate credit unions from other providers," said Chandler. "We want to be the best service credit unions provide. Our business is dependent on relationships, and we recognize how important our credit union partners are to Autoland."
Autoland is looking to grow its footprint nationally, he said. One of the company's strategies is to leverage relationships with existing CUSOs throughout the country and to be owned by the credit unions they serve, eventually making Autoland a nationally owned CUSO.
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