Another Canadian dealership group has expanded to the U.S.
Ride Automotive, which includes two Kia stores in Canada, has purchased Simi Valley Chrysler Dodge Jeep Ram from Robert Bayer and Mac McKinley, according to a news release from Performance Brokerage Services, which advised on the deal.
Ride Automotive plans to bring in Performance Brokerage Services to advise them on a second U.S. purchase this quarter and plan to add a third U.S. store, as well.
Navi Singh, president of Ride Automotive, said in a news release: “It has been a pleasure working with Jason Stopnitzky and Performance Brokerage Services on our first US acquisition. There are no words to describe the time and effort Jason put into this deal to make this happen for us. He worked tirelessly and passionately throughout the process, and it has been very advantageous having Jason on our side. We would recommend Jason and his team without hesitation for any acquisition or sale.”
In other dealer-related news, Hyundai Motor America and the automaker’s dealers in Colorado have donated $150,000 to Children’s Hospital Colorado in support of the Alice Cars for Kids Radiothon hosted by Alice 105.9 (KALC-FM).
All of the donations within the radiothon go towards supporting patient care and research at Children’s Colorado.
Among those efforts is pediatric cancer research, which is a major pillar of the Hyundai Hope on Wheels nonprofit.
“We are proud to partner with our Colorado Hyundai Dealers in supporting their mission to end pediatric cancer. Their championship of this cause and the Hyundai Hope On Wheels 25th anniversary is unmatched,” said John Angevine, who is Hyunda Motor America’s general manager for the mountain states region, in a news release.
Foundation Automotive Corp., which operates dealerships in both the U.S. and Canada, announced last week it has acquired Crossroads Dodge Chrysler Jeep Ram in Liberty, Texas.
With the purchase, Foundation now has 17 stores in Texas and eight Stellantis stores in the U.S.
Overall, the group includes 37 locations in Canada and the U.S.
“We’re excited about the huge growth opportunity in the Liberty/Dayton area. I want to thank Bruce Glascock, Alfred Flores, and Chris Godwin for their friendship and giving us the opportunity to purchase part of their legacy,” Foundation CEO and president Kevin Kutschinski said in a news release.
“Special thanks to the new members of the Crossroads/Foundation family, the valued customers, and of course, the whole Foundation team,” Kutschinski said. “Stellantis and their brands Dodge, Jeep and Ram are an extremely important part of the pillars of Foundation.”
This is the second store Foundation has purchased from this group. It is Foundation’s first acquisition of 2023, but more purchases are planned.
“The Texas market is incredible, it’s always great to have another store close to home! We are eager to continue the legacy that has been established with community partners,” Foundation chief operating officer Corey Byrd said.
Bruce Glascock, Alfred Flores, Chris Godwin and Marc Wagoner, the sellers, added in the release: “The fabric of our dealership has been our investment in our community. We are proud of what we have accomplished, and of the support our community has given us. We believe that Foundation was the perfect match to continue to serve and enhance our employees and the community. We want to thank all our employees who worked together to form the culture of Crossroads. We are truly blessed with the relationships we’ve built, and we wish them luck in the future,”
North Carolina-based Team Automotive Group has added a store from the Palmetto State next door.
The retailer said Thursday it has closed on its deal to acquire to Addy’s Harbor Dodge Ram Fiat in Myrtle Beach, S.C., which is Team Automotive’s first store in South Carolina.
With the purchase, the group now has seven stores throughout the Carolinas.
“Team Automotive Group is excited to welcome Addy’s Harbor to the TEAM, and I want to thank Mike Addy for his graciousness throughout the entire process,” Team Automotive president and owner Kristin Dillard said in a news release.
“We could not have asked for a smoother or more pleasant experience working with Mike and his team. Although growing our footprint is an integral part of our strategic plan, growing our team with the right people has always been a priority,” Dillard said. “We are fortunate to partner with such a talented group of people as we take our first drive into South Carolina. Welcome to the family — and more importantly — welcome to the TEAM!”
Dillard has led Team Automotive’s growth since 2017. At that point, the group was one store in Salisbury, N.C., with 60 employees.
Now, the group — which is headquartered in Charlotte — has seven stores and more than 400 employees, and plans to grow to 10 locations and more than 650 employees.
“The growth Team Automotive Group has seen is only made possible by the dedication of our amazing team,” Dillard said. “When you have the right people in the right place, it makes all the difference.”
Walser group partners with Urban League
In other dealer group news, Walser Automotive Group has teamed up with the Urban League Twin Cities for a partnership, funded through the Walser Foundation. The partnership is connected to the Urban League Twin Cities’ Black Gems program, which is a college and career-preparation program open to area high school students.
Included in the program is a spring tour of Historically Black Colleges & Universities as well as civil rights monuments, and museums.
The Walser Foundation is covering fees for all of the 20 students participating this year.
“Beyond the financial donation, it is critically important to us that we begin a relationship with this next generation of incredible future leaders,” said Sherry Schultz, Walser’s chief human resources officer. “We feel strongly about digging earlier and deeper to connect with talented individuals we hope to see in our organization one day very soon.”
Tbe program also includes training on money management, investing, civics, community service, college admissions, financial aid and other curricula.
Marquita Stephens, who is interim CEO and president of Urban League Twin Cities, added: “Walser came to our students in December, ready and excited to present who they are and what they do as a community employer. It set the bar for students on what they should seek and expect from employers in the future. We see this partnership as especially beneficial for our college students and Black Gem alumni.”
In this roundup of dealership M&A moves, we start with one of the largest public groups and its major move in the aftersales space.
AutoNation announced it has closed its $190 million acquisition of RepairSmith, a mobile auto repair and maintenance provider. The deal was first announced in December.
“Apart from the important outcome of adding over 400 talented and dynamic team members, the acquisition of RepairSmith represents a unique opportunity for us across many aspects of the automotive value chain,” AutoNation CEO Mike Manley said in a news release. “We have over 11 million Customers with different and diverse after-sales needs. RepairSmith will add additional customer-centric and convenient repair and service options for our customers – further improving our penetration and loyalty.”
Manley also noted the purchase helps AutoNation grab market share in the non-franchise aftermarket, and gives its AutoNation USA used-car stores a competitive edge over similar providers.
“Customers who have migrated away from franchised dealerships now have a competitive, more convenient alternative to the standalone maintenance and repair providers. They now have a mobile service solution backed by the country's most respected and admired automotive retail group,” Manley said.
“RepairSmith will add a strong competitive advantage to our AutoNation USA preowned business – which will now be able to offer After-Sales services to their customers that other competitors cannot do,” he said. “And finally, we will bring the full weight and scale of the AutoNation business to RepairSmith to accelerate their growth and success.”
AutoNation has also named Christian Treiber president of after-sales for the retailer, where among other duties, he will head up integrating RepairSmith into the AutoNation business.
Treiber will also work with RepairSmith CEO Joel Milne and the AutoNation leadership team to continue growing the RepairSmith mobile repair and maintenance business.
Del Grande buys Audi store
Next up, Northern California-based Del Grande Dealer Group has added another store in the region with the purchase of Audi Modesto, which it acquired from Findlay Automotive Group.
It’s the first Audi store in the group’s portfolio.
“Adding Modesto Audi as our first Audi store at DGDG not only adds another premium brand to our group but also fits perfectly into our continued growth strategy in Northern California,” said DGDG principal Shaun Del Grande. “This new dealership complements our existing portfolio and helps expand the DGDG footprint.”
Group CEO Jeremy Beaver added: “DGDG will bring its Silicon Valley savvy to Audi Modesto. Our new dealership will offer DGDG’s world-class modern automotive retail experience, technology-rich digital retailing processes, Sell to DGDG technology, data analytics, and more. Additionally, this will also provide more opportunities for our team members to grow in their careers. We are thrilled to welcome Audi Modesto to the DGDG family.”
Parks Automotive Group, which owns 13 stores throughout the Carolinas and Virginia, has purchased two dealerships near the Charlotte, N.C. area from Jack Salzman and Robin Salzman: Lake Norman Chrysler Dodge Jeep Ram and Gastonia Chrysler Dodge Jeep Ram.
That’s according to a news release from Haig Partners, which was the sell-side advisor on the transaction.
Haig said the sale of the Lake Norman store is thought to have the highest value of any CDJR dealership sale.
Haig Partners president Alan Haig said of the Salzmans: “Theirs is truly an American success story, and proof that hard work and determination can lead to greatness. Our whole team congratulates them both as they move on to new opportunities. We were so proud to partner with them in this record setting transaction. The story here was complicated with a relocation to a new and much larger facility, a recently opened commercial upfitting center and a to-be-opened used vehicle superstore, so we needed all our skills to pull together the offering materials and show potential buyers the story of what is, and what could be.”
He added: “We also commend Adam Parks for having the vision to see that Lake Norman CDJR has the potential to be among, if not the most profitable dealership of its kind. Lake Norman and Gastonia are both growing rapidly, and N.C. is an excellent state for dealers. The potential for very high sales and service work is unlike almost anything we have seen in our careers.
“This transaction demonstrates that the market remains strong for dealerships. Buyers are contacting us regularly looking for acquisition opportunities, and they are not hesitant to make strong offers on dealerships that fit their strategies. We expect 2023 to be similar to 2022 in terms of dealership sales, which was the second-best year ever.”
Ahead of next week's NADA Show 2023 event in Dallas, at least two dealer groups have news to celebrate.
Starting in the Northeast, Tasca Automotive Group, which is based in Rhode Island, has acquired Gibbons Ford in Dickson City, Pa. from John Grow, who is retiring.
That’s according to a news release from Tim Lamb Group, which brokered the sale.
The store, which is Tasca’s first in Pennsylvania, has been renamed Tasca Ford Dickson City.
Tasca retained all of the dealership’s 71 employees.
“We understand how important honesty, integrity, and customer satisfaction are to a company,” Tasca vice president Bob Tasca III said in a news release. “These values and principles are the same ones that we have been committed to providing since my great grandfather Bob Tasca Sr. founded Tasca Automotive Group in 1943 and we are happy to carry them on at Tasca Ford Dickson City.”
The group now has 31 locations through in Rhode Island, Massachusetts, Connecticut, Illinois, Florida, New York, Missouri and Pennsylvania.
“This is our first dealership in Pennsylvania, and we are excited to be expanding into a new market and providing a stress-free car shopping experience with exceptional car care and customer service,” Tasca said.
Moving to the Midwest, Michigan-based Zeigler Auto Group said it ranked No. 37 on Glassdoor’s 100 Best Places to Work in the U.S. for 2023 (among large companies). The retailer said it was tops among dealer groups and automotive companies.
“Being recognized by Glassdoor as one of the Best Places to Work for 2023 alongside companies larger than us, truly demonstrates how committed we are to our team members,” president and CEO Aaron Zeigler said in a news release.
“This means investing in innovative processes and training that equips our employees with the skills needed to exceed customer expectations without sacrificing work-life balance,” he said.
Mike Van Ryn, who is director of talent development at Zeigler, added: “Recognition at the highest level from Glassdoor is an honor for our team at Zeigler Auto Group. This award is a milestone for us and validates our commitment to each other for truly living out our values as an organization.
“We help each other grow, develop and excel in our roles.Team members and customers can experience our world-class culture,” he said. “We are thankful to be among these truly amazing organizations!”
The full list can be found here.
Tonkin Automotive Group has sold its Acura of Reno dealership in Nevada to New England-based Key Auto Group, according to Performance Brokerage Services.
In a news release, Performance Brokerage Services co-founder Jason Stopnitzky said: “We have been friends with the Tonkin family and their multi-generational dealer group for many years. They are a very special client to our family, and it was an honor to help them with another sale.
“This is our third transaction with John Leonardi and Key Auto Group. The group has experienced hyper growth in recent years, and it’s only the beginning,” he said. “I am excited to watch them execute their vision of expanding the Key Auto Group from coast to coast, while operating under the philosophy of offering consumers the highest quality of products and service.”
Elsewhere, Castle Automotive Group has named a new chief financial officer and a new chief operating officer.
In a transition that became effective Sunday, COO Bob Politza became CFO, and Mike Fullmer took on the COO role.
“This critical move will allow Bob the time and flexibility to focus on the groups acquisition and financial strategy and will allow Mike Fullmer to take the reins to optimize the auto groups performance through the development of streamlined processes and people development,” CEO Joe Castle said in a news release. “I am fully committed to creating a culture where everyone can thrive and reach their full potential.”
Politza added: “I am excited to take on the role of CFO to continue to analyze and thoroughly vet acquisition opportunities and better align our financial performance to exceed our goals, As Joe Castle says, we are building a plane in flight and with that I need to ensure that our group can be competitive with other auto groups as we are self-funding our growth with no outside investors or other capital.”
Fullmer said: “In a short period of time I learned quickly of Joe's vision to scale the group and I knew that from an operational standpoint I could take a lot of load off of Joe and Bob so they can focus 100% on acquisitions in 2023. I am looking forward to meeting and working with all of our OEM partners and over 800 Castle employees to continue to keep our group in the forefront of innovation, people development and performance.”
Ken Garff Automotive Group has purchased two dealerships in Arizona from Earnhardt Auto Centers, according to a news release from Kerrigan Advisors, which represented Earnhardt in the transaction.
Ken Garff bought Earnhardt Volkswagen in Gilbert-Chandler and Rodeo Kia in Avondale.
“It was a sincere pleasure and honor to once again represent the Earnhardt family in the sale of their valuable dealerships and property,” advisory founder and managing director Erin Kerrigan said in a news release.
“The success of these dealerships, the power of their brands and the strength of the Phoenix market – one that our firm knows well – created tremendous buyer demand,” Kerrigan said. “ We congratulate the Ken Garff Automotive Group on another successful purchase in one of the best auto retail markets in the country.”
Elsewhere, Vietnam-based automaker VinFast said Wednesday it has opened additional stores in Los Angeles and Orange County, Calif.
The company opened VinFast Canoga Park, VinFast Irvine Spectrum, and VinFast Marina Del Rey on Wednesday and will open VinFast Del Amo Fashion Center later in December.
“We are proud to open four more VinFast stores in California, rapidly expanding our retail system to bring direct product experiences to customers and meet their vehicle needs,” VinFast US CEO Giang Nguyen said in a news release.
“This will not only be where the customers learn more about VinFast's products but also a place to connect VinFast to the customers and take care of them for a lifetime of car ownership.”
Swickard Auto Group in Gladstone, Ore., has purchased five dealerships representing seven franchises from Anderson Autos in Thousand Oaks, Calif., according to a news release from The Presidio Group, which advised Anderson in the deal.
Included in the deal are Acura, Honda, Jaguar, Land Rover, Lexus, Mercedes-Benz and Commercial Van dealerships. Swickard plans to purchase three more dealerships from Anderson Autos, representing Buick, GMC, Cadillac and Chevrolet, in early 2023.
Swickard has stores in Alaska, Oregon, Texas, Washington and California. The deal broadens the group’s presence in the Golden State, where it has eight stores in the San Francisco area.
“Swickard Auto is grateful for the opportunity to serve our new colleagues and community partners in Thousand Oaks,” Swickard Auto Group CEO Jeff Swickard said in a news release.
“As our business grows across the west coast, our commitment to hospitality, employee development, and community causes will enhance the great foundation built by Anderson Autos,” he said. “Our expansion in California is one example of where we see Swickard heading directionally.”
William Anderson, who is executive chairman and CEO of Anderson Holdings, added: “We were determined to find alignment with a buyer who represented the same values and interests as our own.
“We are extremely pleased with the outcome that The Presidio Group helped us obtain. Their process and relationships made the transaction seamless and fruitful for both sides, and after getting to know the executive team at Swickard Auto Group, we are confident that our employees will continue to thrive under their leadership.”
AutoNation has made a major play in the aftersales business, announcing Monday it is acquiring RepairSmith, a mobile auto repair and maintenance provider, for $190 million.
The transaction is expected close in the first quarter.
The retailer said the purchase of RepairSmith gives the company another channel to provide aftersales services to its existing customers and introduce AutoNation to new customers.
Through RepairSmith, customers can have vehicles/maintenance done at their home, workplace or on site for fleet vehicles.
AutoNation also plans to utilize RepairSmith for reconditioning and other internal services to increase efficiency of getting vehicles frontline ready.
“Earlier this year, we added captive financing capabilities and initiated the development of mobility solutions to expand our customer offerings,” AutoNation CEO Mike Manley said in a news release.
“RepairSmith is the next step in our plan,” Manley said. “It expands AutoNation's ability to penetrate the extensive aftersales service market and conveniently respond to our customers' needs by broadening the reach of our existing aftersales network.”
Less than a month ago, AutoNation announced it had obtained a roughly 6.1% minority ownership stake in TrueCar.
In a Nov. 15 news release, Manley said: “We believe that TrueCar, with its leading digital marketplace, is well positioned to enhance the digital car buying experience and provide personal transportation solutions that are easy, transparent, and Customer-centric. We also believe the investment will strengthen the relationship between our companies and provides an opportunity for closer commercial collaboration with TrueCar in the future.”
In that same release, TrueCar president and CEO Mike Darrow said: “We are excited by this announcement from AutoNation, America's leading automotive retailer, as we see their commitment to a great Customer experience as fully aligned with the values of TrueCar and our offerings. Our companies believe this opens the door to an opportunity to collaborate on ways to provide a superior digital buying and selling experience for consumers.”
