E Automotive Inc. Divests Two U.S. Auction Sites to Focus on Canadian Growth

E Automotive Inc. Divests Two U.S. Auction Sites

E Automotive Inc. (EINC), a prominent name in automotive wholesale solutions, has made a strategic move by divesting two of its auction sites located in New Orleans and Houston. This decision, announced on October 27, 2025, comes as part of the company’s ongoing efforts to sharpen its focus on the Canadian market, which is viewed as a high-growth opportunity.

Details of the Divestment

The divestment involves an asset purchase agreement with America’s Auto Auction Group, through which EINC’s U.S. subsidiary will transfer its automotive auction assets for approximately $11 million, subject to standard purchase price adjustments. This agreement is projected to conclude around October 30, 2025.

Lisa Scott, President of EBlock, expressed the importance of this divestment, stating it paves the way for enhanced growth opportunities for the company’s U.S. teams. "It allows us to intensely focus on licensing and innovation," Scott remarked, emphasizing the company's intent to bring more solutions and value to its partners via integrated strategies highlighted by EDealer and Cars.ca.

Strategic Focus on Canada

With this shift, EINC aims to further cement its position in the Canadian automotive industry. The company plans to allocate more resources towards expanding its integrated offerings and operational processes. Key areas of focus include:

1. Integrated Platforms Enhancement: The company seeks to advance both its Land-Meets-Tech and Retail-Meets-Wholesale platforms, integrating EBlock with EDealer while enhancing the consumer-centric brand, Cars.ca.
2. Operational Streamlining: By simplifying its operations, EINC aims to boost efficiency and cut down on complexity across the organization.
3. Auction Operating System Development: EINC plans to further develop and scale its auction operating system, EOS, for future partnerships and licensing opportunities.

Despite the divestment of its auction sites, EINC remains committed to the U.S. market. The Flint, Michigan location will continue to operate as a strategic import/export hub, widening inventory availability for customers in both the U.S. and Canada.

Commitment to Technology

EINC maintains its dedication to advanced technology and innovation within the automotive industry. Currently, MAG Now, associated with McConkey Auction Group, exclusively uses EBlock’s platform for its digital auctions and has integrated technologies such as LiveAuctioneer and LiveLanes to facilitate concurrent physical and digital vehicle sales during auction events.

Jason McClenahan, CEO of EINC, expressed confidence in the company's technological capabilities, indicating a bright future for collaborations and licensing opportunities across North America. The divestiture symbolizes a pivotal shift as EINC looks to innovate further and deliver sophisticated solutions within the automotive sector.

Conclusion

EINC's strategic move to divest non-core U.S. assets illustrates its commitment to strengthening its operations in Canada, ensuring robust growth and further development in the automotive wholesale arena. By focusing on advancing its technology and enhancing dealer partnerships, EINC aims to reshape the landscape of automotive sales and auction services,
empowering its partners and setting new benchmarks in the industry.