AutoNation highlighted this week that the dealer group’s newest marketing campaign is designed to amplify the company’s commitment to delivering an “unrivaled” customer experience and “world-class” work environment.
AutoNation’s new national advertising campaign is celebrating its associates coast to coast with the theme, “Go Be Great!”
As the next evolutionary phase of AutoNation’s, “What Drives You, Drives Us” customer-facing ad campaign, the group said the new “Go Be Great” messaging highlights the customer experience as central to AutoNation’s approach to automotive sales and service.
AutoNation’s multi-million dollar, omni-channel media campaign was developed in partnership with the group’s marketing team, I Think Studios and Zimmerman Advertising.
The campaign features associates from AutoNation’s dealerships coast to coast and will run across media channels including TV, radio, print, online and social media. TV commercials will start airing on ESPN, CNBC and NBC leading up to the Indianapolis 500 on Sunday, when AutoNation’s four-time Indy 500 champion driver Helio Castroneves will “Drive for Five,” in his bid to be the first five-time Indianapolis 500 winner in the history of that race.
“AutoNation’s ‘Go Be Great’ ad campaign characterizes the collective drive, ambition and determination of our Associates to be the best each and every day, leading the way in Customer excellence,” AutoNation executive vice president and chief customer experience officer Marc Cannon said in a news release.
To coincide with the new advertising campaign launch, AutoNation also said it will focus on recruitment and retention in each of its markets.
From retail sales and service technicians to corporate positions, AutoNation mentioned that it provides comprehensive benefits packages, extensive on-the-job training and opportunities for career growth, inspiring employees to “Go Be Great.”
“Our associates are our greatest asset, and we’re currently in the process of hiring more talented individuals at all levels and skill sets who are motivated and inspired to excel in everything we stand for here at AutoNation,” Cannon said.
AutoNation pointed out that it has been recognized by many industry authorities.
In fact, J.D. Power has awarded 129 of AutoNation’s stores with the coveted Dealer of Excellence award, recognizing the best dealers in customer experience.
In addition, Reputation reported that AutoNation has received more than a half-a-million Five-Star reviews, the most of any public or private automotive dealer group. Through AutoNation’s DRV PNK initiative, the company is driving towards $35 million donated to fight cancer.
AutoNation has also created ONE AutoNation to ensure that associates feel at home in an inclusive workplace, where differences are embraced and opportunities for learning, growth and leadership are abundant.
To find out more about careers at AutoNation, visit www.jobs.autonation.com.
This roundup of dealer group news begins with another dealership changing hands.
According to a news release sent on Thursday, Vaughan Automotive has purchased Mike Calvert Toyota, one of the fastest-growing Toyota dealerships in Houston.
While the pandemic made it challenging for many businesses, Vaughan Automotive said Mike Calvert Toyota retained its entire staff and added new employees to further serve its customer base. As a result, the group said Mike Calvert Toyota sold more than 6,000 new and pre-owned vehicles and highlighted several store achievements, including:
—Total 2021 new Toyota volume 108.3% of prior year versus Gulf State Toyota (GST) Region at 101.9%.
—Total 2021 Toyota Certified Used Vehicle (TCUV) 112.3% of prior year versus GST at 105.7%
—Grown Service Technician staff from 22 to 55
—26 local associate degree scholarship graduates, current Highschool CTE apprentices
—Total sales year-over-year (2021 versus 2020) posting a more than 130% increase
—Customer labor sales (2021 versus 2020) generating a 161.0% increase
—Ranked sixth in GST for 2021 (157 dealerships) by percentage increase for fixed operations sales growth.
“I am thrilled to continue Mike Calvert’s legacy and build on the foundation he laid,” Vaughan Automotive owner and chief executive officer Shawn Vaughan said in the news release.
“Over the past year, we’ve seen exponential growth, not only in sales, but also in our dealership team. It’s critical to me to create a world-class customer and employee environment at Mike Calvert Toyota, something that our Houston and surrounding area communities deserve,” Vaughan continued.
Now with Vaughan as owner and CEO, Mike Calvert Toyota — which has been serving the Houston community for more than 44 years — is undergoing renovations to update the customer amenities, technician areas and body shop all the while continuing to provide high-quality customer service with top-of-the-line amenities and equipment.
The 75,000-square-foot store features refreshed sales and leasing offices, express lube, customer waiting space, restrooms, Rent-A-Toyota operations, along with top-tier facilities for technical services and an expansive lot with new and pre-owned vehicles.
Vaughan has spent most of his career training and managing Vic Vaughan Toyota of Boerne alongside his father. At the beginning of 2022, Shawn Vaughan purchased the family legacy dealership to become the owner and dealer principal of Vic Vaughan Toyota of Boerne.
Vaughan said he plan to integrate Mike Calvert Toyota further into the community through nonprofit partnerships and charitable giving, such as the newly announced Noble Nurse project.
“Houston has such a vibrant community and we’re excited to give back and really make it our home,” Vaughan said.
Group 1 dividend & stock repurchase
Similar to what fellow publicly traded dealership group Penske Automotive announced this week, Group 1 Automotive also revealed that its board of directors increased the company’s common stock repurchase authorization by $175 million to $250 million, and also declared an increase to the quarterly cash dividend.
The company also updated its year-to-date repurchase activity of 796,060 shares of common stock at an average price of $179.72 for a total of $143.1 million, which represents 4.6% of Group 1’s outstanding share count as of Jan. 1.
Group 1 indicated in a news release that it expects that any repurchase of shares will be funded by cash from operations, and repurchased shares will be held in treasury.
And Group 1’s board of directors also declared a cash dividend of $0.37 per share for the first quarter.
The company highlighted the dividend represents an increase of 2.8%, or $0.01 per share, from the fourth quarter. The dividend will be payable on June 15 to stockholders of record as of June 1.
“We continue to demonstrate strong cash flow and a healthy balance sheet, which has enabled significant capital deployment in 2022. said Earl Hesterberg, president and chief executive officer of Group 1, which has 202 dealerships located in the U.S. and U.K.
“We look to continue growth via acquisitions while also returning capital to our shareholders,” Hesterberg added.
Another Castle exec promoted
Also happening for the second time this week, Castle Automotive Group (CAG) promoted one of its executives.
In a move effective immediately, Jim McLaughlin has been promoted to vice president of fixed operations for CAG, which currently owns nine dealership locations with 14 franchises throughout Illinois and Northwest Indiana.
CAG highlighted that McLaughlin is well-known expert in his field with more than 22 years of robust automotive fixed operations experience with multiple OEMs. The group said his leadership skills range from developing and mentoring employees and streamlining processes to identifying and executing revenue growth potential.
According to a news release, McLaughlin will be crucial as CAG continues to expand its dealership footprint by modernizing the service and parts departments.
“Our company has grown at a rapid speed over the last few years, and in order to stay competitive as well as deliver results and great customer experience, we have to grow our people internally first,” CAG chief executive officer Joe Castle said in the news release.
“It is no secret that fixed operations in most stores get the least amount of resources and infrastructure, yet it has tremendous potential for growth and impact on our store’s profitability,” Castle continued. “From the day that Jim started with me, I knew that he was young, hungry and had a vision for service and parts operations that fit mine.
“I am excited for this opportunity to support our stores’ fixed ops teams at a whole new level and for Jim and his directors team — Hayley Navarro and Dave Vargocko — to all continue to grow their careers with CAG,” Castle went on to say.
Previously, CAG chose Sean Seltzer to lead its marketing strategy as chief marketing officer and promoted David Ortiz to be vice president of variable operations.
While Penske Automotive Group made moves connected with its shareholders, Castle Automotive Group (CAG) reinforced its executive leadership team in the past week.
CAG, which currently owns nine dealership locations with 14 franchises throughout Illinois and Northwest Indiana, chose Sean Seltzer to lead its marketing strategy as chief marketing officer.
Castle also promoted David Ortiz to be vice president of variable operations.
Seltzer joins Castle with more than 25 years of marketing, sales, and executive management experience, which includes stints in South Florida for Ford, leading marketing for a division of Volkswagen of America, being the North American sales manager at Ferrari-Maserati North America and managing a division of Kelley Blue Book.
CAG chief executive officer Joe Castle highlighted through a news release that Seltzer’s entrepreneurial background, OEM experience and digital marketing leadership will be a valuable asset as the CMO for the group.
“As Castle Automotive Group continues to expand its dealership portfolio through acquisitions and is focused on modernizing the automotive retail experience through its digital assets, Sean will be a crucial part of my leadership team in preparation for the growth and scale we will need to execute our vision,” Castle said.
Meanwhile, CAG said in another news release that Ortiz’s promotion comes as part of the organization’s strategy to further accelerate Castle’s growth, taking advantage of his vast knowledge and expertise in the ever-changing demands from its customers and their dealership experience.
“David Ortiz is a vital executive on my team with an insane work ethic,” Castle said in the other news release. “His vision for what the sales and customer experience in automotive retail needs to be from the time they hit our websites through the purchase and after purchase experience will set our organization up for success well into the future. I am excited to see David grow and take on this mission.”
The group added that Ortiz will be an integral part of CAG’s expansion with a primary focus on modernizing the automotive retail experience through a streamlined, frictionless approach to buying and selling vehicles.
“David is an important asset to our group. He has demonstrated a broad understanding of store operations, integrating our acquisitions and growing our platforms in step with Castle’s growth strategy,” CAG chief operating officer Bob Poltiza said.
“With his entrepreneurial background and approach to leading teams, he will help us better leverage our talented employees and enable us to capture potential faster,” Poltiza went on to say.
Penske’s stock moves
In other dealer group news, Penske announced last week that its board of directors has increased the company’s dividend by 6.4%, or $0.03 per share, to $0.50 per share.
According to a news release, the dividend is payable June 1 to shareholders of record on May 23.
“During the first quarter of 2022, Penske Automotive Group generated $381 million in cash flow from operations,” Penske Automotive Group president Robert Kurnick said in the news release.
“Based on this strong cash flow, and the continued strength of the company’s diversified business model, we are delighted to provide our shareholders with another increase in the cash dividend,” Kurnick continued.
Additionally, Penske’s board of directors increased the company’s share repurchase authorization to $250 million.
From Jan. 1 through April 30, the company had repurchased 1.9 million shares for $184.1 million, leaving it with $46.3 million available as of April 30.
This dealer group roundup includes activities involving a franchised group and an independent group, both located in the Northeast.
The McGovern Auto Group, which operates more than 19 dealerships across Massachusetts, New Hampshire and New York, announced the opening of McGovern Route 93 Hyundai.
The new dealership, which replaces Bill Dube Hyundai, has 25 staff members across its sales, leasing, and maintenance teams, with plans to add approximately 15 more in the coming months.
The opening of the new dealership follows McGovern’s acquisition of Bill Dube Hyundai, located on Main Street in the heart of Wilmington, Mass. Under the McGovern brand, the new dealership will feature a lot with more than 175 new and used vehicles.
“The Dube family has provided exemplary service to car buyers and owners in Wilmington, Danvers, Middleton, and Reading for decades — we’re proud to continue that legacy of excellence,” McGovern Route 93 Hyundai general manager Patrick Coffey said in a group news release.
“We’re also excited to build on the dealership’s commitment to the local economy, with plans to employ more than a dozen new staff from the surrounding area,” Coffey continued.
Founded in 2016, McGovern Auto Group is a full-service operation with five collision centers and a commercial and municipal division.
Recognized as one the region’s leading dealers of luxury brands such as Ferrari and Porsche, the McGovern Auto Group also has extensive expertise working with Chevrolet, GMC, Ford, Hyundai, Honda and Toyota vehicles.
Zac Casey is McGovern Auto Group’s vice president of operations and added these thoughts about McGovern Route 93 Hyundai.
“The new dealership will deliver McGovern’s extensive inventory and intelligent, tech-enabled pricing strategy to customers in and around Wilmington,” Casey said in the news relase. “This is a new part of Massachusetts for us, and we can’t wait to offer our great prices, superb customer service, and amazing aftermarket support to the local community.”
AutoLenders’ charity efforts in southeast PA
On Friday, AutoLenders, an independent and family owned dealership group for more than 40 years, announced its partnership with Make-A-Wish Philadelphia, Delaware & Susquehanna Valley. The special honor comes following AutoLenders’ $10,000 donation to support a child’s wish in observance of April’s Distracted Drivers Month, which highlights how active community support plays a role in the safety of the youth.
In recognition of the sponsorship, AutoLenders hosted Make-A-Wish Philadelphia, Delaware & Susquehanna Valley president and chief executive officer Jennifer Davis for a commemoration at its newest showroom in Exton, Pa.
According to a news release, the event included opening remarks from AutoLenders president Brad Wimmer, a donation presentation to Make-A-Wish; a short speech from Davis and an exclusive meet and greet with Wimmer, Davis and other AutoLenders leaders who attended the ceremony.
“Since our inception in 1979, community, stewardship, philanthropy and transparency have guided AutoLenders’ success,” Wimmer said in the news release. “As our brand has evolved, so has our commitment to making our neighbors feel safe — as both drivers behind the wheel and members of our communities.
“We are honored to work alongside Make-A-Wish, an organization that embodies this mission and champions what it means to create strength, hope and transformation in communities nationwide,” Wimmer went on to say.
Make-A-Wish defines Wishes Heroes as those committed to raising $1,000 or more during the campaign. With a campaign goal of $175,000, the Make-A-Wish Philadelphia, Delaware & Susquehanna Valley campaign went on to raise nearly $200,000.
AutoLenders was recognized as one of the generous Wish Heroes sponsors.
“The Make-A-Wish wish journey provides children with more than a momentary gift. It provides them with hope,” Davis said in the news release. “Wish Heroes help make future wishes possible, which is why we are thrilled to have AutoLenders’ support. AutoLenders’ generous donation helps ensure that local wishes are granted to the over 400 children waiting.”
While one dealer group broke ground on a new rooftop, another dealer group continued the ongoing trend of acquiring existing stores.
Another development in what’s been a busy stretch for Sonic Automotive, the company recently held a groundbreaking ceremony to celebrate the start of construction of Audi Downtown Nashville, a two-story, 35,000-square-foot building located at 15 Lindsley Avenue in the heart of the Music City’s SoBro neighborhood.
Meanwhile, Performance Brokerage Services announced the sale of Nevada Auto Mall in Nevada, Mo., from Dan Hope to Bob Jacaway and Mark Muller of Max Motors.
Earlier this week, Sonic highlighted a move in the Show Me State, as well, boosting its used-car operations with the opening of an EchoPark Automotive retail hub in St. Louis. That announcement came on the heels of a community-driven project in Florida at EchoPark Automotive Tampa.
Sonic recapped in a news release that it conducted focus groups with Nashville residents in 2020 to test the concept and location for Audi Downtown Nashville. The company indicated the focus groups overwhelmingly liked the downtown location and felt the energy of SoBro, partnered with progressive and innovative digital tools, would bring a “tech-forward” Audi experience to downtown Nashville.
Sonic highlighted Audi Downtown Nashville will be an innovative space where guests can test-drive new Audi models, build and customize their ideal Audi, and enjoy convenient Audi service from factory-trained technicians, bringing the future of automotive luxury directly to Nashville.
“Our Audi Nashville dealership has built a reputation for innovation, luxury, and exceptional customer care, and we are excited to expand that level of excellence into an exciting new destination at Audi Downtown Nashville,” Sonic chief executive officer David Smith said in the news release.
“This new location will be the first of the Audi of America brand to feature an evolutionary new way for consumers to shop, buy, and service their vehicles and experience our Audi Nashville team’s exceptional guest experience,” Smith continued.
As part of the seamless digital guest experience at Audi Downtown Nashville, customers will be able to select any Audi model from either Nashville location for convenient pickup, empowering them with more technology, complete transparency, and the most convenient way to give their Audi the service it deserves.
“We are thrilled to partner with Audi of America on this new concept,” Sonic president Jeff Dyke said. “We’ve assembled a top-notch team to bring this innovative dealership model to life and are looking forward to providing guests in Nashville and surrounding areas with a unique way to shop for and service their vehicles.”
Dealerships change hands in Missouri
According to that news release from Performance Brokerage Services, Nevada Auto Mall was established by Dan Hope in 1994 and remained family owned and operated since opening its doors.
The firm highlighted Hope began his career selling vehicles in 1969 before he acquired his first dealership in 1975. After more than 50 years in the business, Hope is looking forward to retirement, according to Performance Brokerage Services.
Max Motors was established in 2006 in Butler, Mo. During the past 16 years, the company has expanded to 10 dealerships and one collision center across Missouri and Kansas. This acquisition marks the group’s second location in Nevada, Mo.
The dealership will remain at its current location at 2501 East Austin Boulevard in Nevada, Mo., and has been renamed Max Ford of Nevada and Max Chrysler Dodge Jeep Ram of Nevada.
As part of the acquisition, the dealerships will retain their employees, including Hope’s son and grandson.
“Nevada Auto Mall and the Hope family name have been doing business for 25 years and are known throughout the region for delivering a pleasurable buying experience,” Max Motors president and CEO Bob Jacaway said in the news release from Performance Brokerage Services. “It’s our mission to continue that legacy with Nevada Auto Mall as part of the Max Motors family.”
As franchised dealer groups continue to ramp up their used-car operations, Yark Automotive Group has teamed up with Cox Automotive to launch Yark QuickBuy, an online pre-owned vehicle platform that allows consumers to complete a car-buying transaction digitally in as little as 20 minutes.
Yark QuickBuy, which is powered by Cox’s Esntial Commerce technology, provides used-car customers with the following, as listed in a Cox Automotive news release:
- Automated financing and lender approval
- 360-degree vehicle views
- Transparent pricing
- Prescriptive aftermarket product and insurance offerings
- Trusted trade-in opportunities with Kelley Blue Book® Instant Cash Offer (ICO)
- Safe and secure completion and signing of deal paperwork and payments
- Complimentary white glove vehicle delivery within 50 miles of the dealership
“We created Yark QuickBuy to save our customers’ valuable time and offer them a fully-online car buying experience,” Yark Automotive Grup marketing and ecommerce director Billy Yark said in a news release.
“With Yark QuickBuy customers can shop however they want to shop, whenever they want to shop. We are proud to be the first dealership in Toledo to offer a start to finish online car buying experience, but if for any reason a customer wants to come into the dealership to see the car or talk to one of our sales experts, that’s always an option,” he said.
Scott Duncan, who is manager of Yark QuickBuy, added: “Yark QuickBuy is the future of car buying. It’s great to be able to give our customers a trusted option to complete their purchase online, while still offering the same local expertise and aftermarket services we’ve been providing for more than 40 years. And we provide a 3-month or 3,000-mile limited warranty in addition to our 5-day or 500-mile no hassle return policy that both come with every Yark QuickBuy purchase. If a customer changes their mind for any reason, they can return the vehicle for a full refund.”
Sonic takes EchoPark to another state
Elsewhere, Sonic Automotive also boosted its used-car operations, with the news Wednesday that its has opened an EchoPark Automotive retail hub in St. Louis, which is the first Missouri location for Sonic’s chain of standalone used-car stores.
EchoPark now has locations in 20 states.
“We are very excited to announce the opening of our first EchoPark location in Missouri,” said David Smith, CEO of Sonic Automotive. “We are pleased with the progress we are making as a brand and I’m proud of our teammates for continuing to deliver happy owners, while growing the EchoPark brand at the same time.
“Our rapidly growing distribution network brings the best quality pre-owned cars with the best-proven value from the most caring staff who will deliver award-winning guest experiences to another key market.”
Group 1 Automotive and Penske Automotive leaders spoke during their respective companies’ earnings calls last month about the various supply chain and consumer demand issues that have taken place since the start of the pandemic a couple years ago.
One of the similarities between the two companies’ quarterly earnings reports …
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EchoPark Automotive Tampa is about to get much more colorful, thanks to the creativity of local high school students.
The location, which is part of Sonic Automotive’s segment that specializes in retailing used vehicles, announced the winners of its student mural contest to celebrate cars and the importance they play in our everyday lives.
The goal of the contest was for art students at Howard W. Blake High School to develop designs for a mural on the exterior wall of the dealership.
According to a news release, 88 students submitted their visual interpretations of cars in today’s culture with a nod to Tampa.
The designs by the finalists were posted on Instagram for public voting. The artists for the top three designs with the most votes will be awarded a commission, and their designs will be blended into one mural.
The winners include:
Valentina Sarrin – 11th grade
Phillip Woodside – 11th grade
Vittoria Haynes – 11th grade
The mural will be painted by local artist Carlos Pons, and EchoPark Tampa partnered with Blake High School art teachers Molly Dressel and Linda Galgani to have their students participate in the contest.
“Community involvement is core to our business,” EchoPark Tampa general manager Todd DeVoogel said in the news release. “We felt that having a mural that was designed and executed by local students and a local artist would be a great project that interjects energy into the community.”
The painting of the mural begins this month and is expected to take 45 days to complete.
EchoPark Tampa is located at 4636 N. Dale Mabry Highway, and the mural will be highly visible to cars passing by on the busy roadway.
Sonic highlighted all of the students who entered the contest will get a chance to participate in a day of painting the mural under the mentorship of Pons.
EchoPark is also making a donation to Blake High School’s art department. The school’s curriculum includes a performing and visual arts magnet program in which any student in the Hillsborough County Public School district can audition to attend.
“EchoPark has been a tremendous partner in this project,” Dressel said in the news release. “I’m so pleased that our students got the chance to participate in this creative way to express the intersection of travel (cars) and art.”
Pons is a painter and multimedia artist currently working in the Tampa Bay area. Born in Guatemala City, he is a self-taught artist whose work reflects the illusion of reality and the human experience. His murals can be seen throughout the Orlando and Tampa Bay areas.
“The arts enrich our lives, our communities, and connect all of us,” Sonic chief executive officer David Smith said. “It is inspiring to see the creativity, energy, and fresh vision of our industry reflected in the mural submissions, and we are excited to share the winning designs with our guests and the Tampa community.”
Aggressive dealership acquisition strategies and consumer-centric digital buying platforms helped Asbury Automotive Group and Lithia & Driveway deliver record earnings and revenue in their respective first quarters of 2022.
In fact, Asbury’s 2021 dealership buying spree catapulted it past its previous five-year acquisition target in the first year of the plan. That led the Duluth, Ga., group to revise its previously announced revenue goal for 2025 to …
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AutoNation reported its first-quarter results in mid-April, sharing a solid start to the year for used-car sales and more
Sonic Automotive announced its Q1 performance shortly after. Sonic’s highlights included quarterly revenues hitting record levels.
The following explores both auto retail giants’ respective performances during the quarter, and their plans for the future amid a hot used-vehicle market …
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