The company reported earnings Wednesday (Nov. 5) showing its retail segment Autohero delivering a record 27,000 units, up 42% year-over-year. Cars are going out faster as well, with the average delivery time falling 20% year over year, from 12 days to 9.5 days, catering to customer preferences for home delivery or pickup, management said.
Christian Bertermann, co-founder and CEO of Auto1, stated that the company is pursuing a value first strategy across all segments.
“We are strongly focusing on the drivers that create value for all of our customers,” he said, focusing on things like competitive financing, greater convenience and selection. The company is working to bolster its inventory, particularly on the retail side, to drive anticipated growth, Bertermann added. He noted that this selection buildup “needs to go hand in hand with this, yeah, elevated brand build out.”
The company is also scaling its operations and finance offerings to support its long-term goals. Production capacity has risen by 38% through the addition of new production centers across Europe, allowing about 95% of Autohero cars to be refurbished internally.
On the financial side, the merchant financing portfolio rose 60% year-over-year, financing €359 million of merchant sales, reflecting what the company described as steady expansion in its captive finance assets. Looking ahead, the CEO stressed a major long-term market opportunity: capturing market share of “10% of the European used car transactions.”
For the quarter, Auto1 achieved revenue of over 2 billion euros ($2.3 billion) for the first time, driven by a 24% year-over-year increase in total units sold, coming to 219,000 vehicles.
Auto1’s successful quarter puts it in the company of other online car sellers enjoying increased sales, even in the face of ongoing U.S. tariffs.
Carvana last week reported a 44% increase in retail units sold, with CEO Ernie Garcia saying that achieving this “when other public retailers are approximately flat, points to something that is structurally different. Something that is capable of achieving our ambitious mission of changing the way people buy and sell cars.”
One week earlier, AutoNation reported a 7% increase in revenues, with CEO Mike Manley, saying the industry is gaining clarity on the ongoing effects of trade disputes.
“The tariff story continues to evolve,” Manley told analysts during an earnings call. “Most of the negotiations with major trading partners are nearing completion and the effects on the auto industry I think are becoming clearer.”
