RM Sothebys Auctions (now RM Sotheby’s) has become a powerhouse in the fast growing $2bn market for classic cars.
What started out over 35 years ago as small restoration shop, RM today is the largest player in the high-end investment grade collector car market. With nearly $500m in sales for 2014 and 140 full time employees, the RM Group of companies is the 800- pound gorilla in the classic car auction world.
It has sold more than 400 cars for over $1m, printed over 1m catalogues and sold nearly 18′ooo cars since starting 35 years ago (the auction company was only formed in 1991).
While the company is most famous for the brand ‘RM Auctions’ (RM Sotheby’s) which carries out multiple auctions around the world every year, RM is more than only an auction house.
RM carries out restorations (it is the only auction house with a dedicated restoration facility), are involved in logistics, transportation, do private treaty sales and collaborate with other auction houses (like Sotheby’s) to carry to out special events/ sales.
The success of RM caught the attention of Sotheby’s who last week announced a long term strategic partnership with RM and took a 25% interest in the auction house (with an option to increase the stake over time). RM auctions will now be called RM Sotheby’s.
The man and founder behind RM is Rob Myers (his initials make up the company name). It took us one year to get this interview done but it was well worth the effort. Rob Myers is a down to earth, simple, likable self -made man who commands respect of his employees.
We sat down with Rob Myers, Chairman and CEO of RM Sotheby’s at Retromobile to discuss the market outlook for 2015 for classic cars, his company and advice he has for collectors.
(For an interview with the main auctioneer of RM, Max Girardo please see interview here).
LME: How do you see the classic car market in 2015?
Myers: In terms of trends, the early 2015 sales results indicate some cars are showing signs of peaking in terms of prices, such as the 300SL Gullwing and the 300SL Roadster. Prices of Dino 246 GT’s also seem to have plateaued. This is healthy for the market. Having said that, rare, top quality cars will continue to fetch strong prices in 2015.
Which car brands are undervalued today?
Myers: Some of the pre-war cars like the Hispano- Suiza are reasonably valued. Also some more modern cars like the Dodge Viper or Acura NSX, vehicles that were not made in huge numbers, are very reasonably priced.
Ferrari continues to set one auction record after another. Why?
Myers:When it comes to collector car values, Ferrari certainly continues to be the perennial leader of the pack. In the automotive world, they are the ultimate worldwide brand and therefore will always attract a strong following. Having said that, some cars like the 250 Lusso have peaked in terms of price potential. Even Ferrari is not immune to a normal market correction in prices.
Lets talk about the RM deal and Sotheby’s: Why did you do the deal?
Myers: We think that the deal is a win win situation for both parties and it is especially good for our clients. For our clients, the partnership will heighten the RM experience as they continue to enjoy the unprecedented level of service for which both RM and Sotheby’s are known. It will allow us to serve them in a way no one else can: an unparalleled global reach and expanding international client base.
In addition, it enables us to broaden the client experience onsite at our destination events by showcasing and incorporating other areas in collecting in which they may be interested and in which Sotheby’s specializes, be it wine, watches, jewelry, art or photography etc.
Did you ever imagine that RM would grow this large when you started it over 35 years ago?
Myers: Never in my dreams did I imagine RM would grow in what it is today. In the last ten years I saw growth opportunities, but when I started out in restoration 35 years ago I certainly did not imagine RM would become a company achieving nearly half a billion dollars in sales annually. It is thanks to the excellent people I have around me that RM continues to grow and post such strong results.
Why did you start RM? What was your thinking behind it?
Myers: I always had an entrepreneurial spirit, a passion for cars and enjoyed making deals and wanted to create something early on. I really never had an interest to work in a factory and have a ‘normal job’. When I started RM back in 1979 I was doing restoration work only, fabrication and paint. Throughout the 80s I was actively buying and selling collector cars. Dan Warrener and Mike Fairbairn joined the company in 1988 and we were soon consigning dozens of vehicles to collector car auctions.
We were doing such a large volume of business with other auction houses- several million dollars a year-that we decided to open our own auction house. That is when RM Auctions was born (in 1991).
What do you think RM offers that other auction houses don’t?
Myers: We are really ‘car people’ that happened to get into the auction business. Our team has a great passion for cars -perhaps more so -than any other company. If you look at the other players in the market, they are mostly auctioneers that happened to be in the car business. With RM, it is the other way around. We offer a complete set of services, the full spectrum from restoration, consulting, private treaty sales, logistics, transportation and of course auctions.
Take our restoration business for example. We are the largest restoration company in the world for classic cars in terms of number of people employed and our team has achieved incredible success including five wins at Pebble Beach.
Tell us more about your private treaty sales. What percent of your overall business is this? Is it growing as fast as your auction business?
Myers: I cannot disclose how much this business is in terms of percent but it is not growing as fast as our auction business.
Although a North American company- you have expanded in Europe aggressively. Tell us more.
Myers: Yes, since launching in Europe in 2007 we have enjoyed success and good results, although there is room for improvement to grow and improve. This year we carried our second auction at Retromobile and are pleased with the results. We are learning and improving every single day and with time, you can expect us to become more important in Europe.
Any plans to bring the RM brand to Asia?
Myers: No not right now. It is important to remember that Asia does not have a car collecting culture like Europe or the US. The biggest markets for RM remain the US and Europe. We do see new interest and clients coming from Poland and Russia and India is quite strong.
It might surprise a few but India is a much larger market for us than China. India has enjoyed a long car collecting culture dating back to the Maharajas who collected some of the finest Rolls-Royce motorcars in the world.
You collect motorcycles according to your bio. Tell us more.
Myers: I love motorcycles and my collection at its peak was over 200 bikes. I also have a few classic cars but am more into motorcycles. I’ve been an official Harley Davidson dealer since 2003.
You must love the Shelby Cobra- after all you called your Son ‘Shelby’.
Myers: I liked the name Shelby first and foremost however yes, Carroll Shelby (the founder of Shelby Corbra) was a very close friend of mine.
What was one of the most memorable cars you have sold?
Myers: Honestly speaking there are many of them. One that stands out is the Bugatti Aravis that I sold to Bill Pope many years ago.
You were one of the first to recognize that classic cars are like moving artworks.
Myers: Yes, I’ve long viewed automobiles as rolling sculptures, however we did a special collaboration with Sotheby’s in New York in 2013 which really highlighted the idea by displaying automobiles as an art form. The sale was a huge success, largely because cars are rightfully being regarded as art today.
The New York sale was a complete demonstration of how to bring some of the world’s rarest and most exceptional automobiles to market, in both an exciting and visually arresting way. It also successfully brought many new collectors into the market for the first time, which is fantastic news for our hobby.
Do you see a big overlap between art and car collectors?
Myers: Sure. Watches, classic cars, art and wine- there is a strong overlap across all these categories.
What advice to you give a collector looking to buy his / her first car?
Myers: My advice for anyone entering the hobby is always buy what you like, do your homework and buy the best you can afford. First time buyers should consult with somebody who knows the business. They should be careful using the Internet and looking for offers and dealers online.
The advantage that auction houses offer collectors and first time buyers is that we do some of the homework for them.
What are some of the most common mistakes collectors make?
Myers: As mentioned in the previous question, they consult the Internet and rely on advice from the wrong people and as a result get bad advice. It is important for collectors to do their homework properly and use experts who have many years of experience. Another common mistake collectors make is that they focus on price instead of focusing on quality.
In the classic car world this can be a very costly mistake to make.
Now I ask Rob to chose one or the other.
- A shelby Cobra or a Ferrari Daytona? A shelby Cobra!
- A 250 GTO reaching $100m or Gold reaching 2000 /ounce? It depends which GTO?
- A Harley Davidson Motorcycle or Triumph? A Harley (I am a dealer)
