Contained within AutoNation’s quarterly news release about sales and revenue results, the publicly traded dealer group also announced its entry into the finance company business.
AutoNation said on Thursday that it has entered into an agreement to acquire CIG Financial, an auto finance company headquartered in Irvine, Calif.
AutoNation said the transaction is expected to close within the next 90 days and is subject to customary closing conditions and regulatory approvals.
“The acquisition of CIG Financial aligns with AutoNation’s strategic business model and singular focus on personalized mobility solutions that are easy, transparent and customer-centric,” AutoNation said in the news release.
“This acquisition will further extend AutoNation’s relationship with its customers beyond the buying experience and throughout the vehicle ownership life cycle,” the company added.
Editor’s note: More details about AutoNation’s second quarter performance in the used-vehicle department will be featured in an upcoming report.
Foundation Automotive marked a couple of firsts with its latest acquisition.
The group, which has stores in both the U.S. and Canada, has entered Tennessee and purchased its first Nissan dealership, as the retailer said Friday it has acquired Jones Motor Company and its four dealerships.
The deal also brings the Jones group’s used-car platform into Foundation’s dealerships.
The acquired dealerships are located in the Savannah and Humboldt-Jackson areas of Tennessee and include Jones Buick GMC, Jones Chrysler Dodge Jeep Ram, Jones Chevrolet Humboldt and Jones Nissan.
They will keep their names. Chad Jones, who owned the group before its sale to Foundation, will remain with Foundation as an executive with the used-car platform, which will now be utilized by all of the group’s 35 stores.
“Nissan is a very welcome addition to our growing group. They have built such a strong and consistent brand in the USA over the last 65 years,” Foundation chief executive officer and president Kevin Kutschinski said in a news release.
“We’re always eager to continue to build our relationship with Buick, GMC, Chevrolet, Chrysler, Dodge, Jeep and Ram,” he said. “The used car platform they have built at Jones Motor Company is second-to-none, and we are fortunate to have Chad Jones on board to help expand it to all of our stores.”
Jones added: “Foundation Automotive was a great fit for us because they are very much like our family and what we believe in. They’re all about taking care of customers and building the community, which is what we have always strived for.”
Reynolds and Reynolds has acquired Motility Software, an end-to-end dealer management software company for specialty dealerships that has been backed by Serent Capital for the past four years.
According to a news release from Serent Capital distributed this week, the two dealer service providers are joining forces to drive operational excellence at specialty dealerships across the country.
In 2018, Motility entered a partnership with Serent Capital, a growth-focused private equity firm based in San Francisco. Since that time, executives said Motility has experienced notable growth during this time with the addition of more than 125 dealers.
That growth was bolstered by the acquisition of location-based inventory management solution, Lot Metrix, in 2021. In addition, Motility introduced three new products to its portfolio over the course of Serent’s investment: MotilityAnywhere, MotilityPay and MotilityConnect.
“Serent has been an exceptional partner to us and helped augment our offerings to customers and increase our growth rate,” Motility Software chief executive officer Brad Rogers said in the news release.
“We are delighted to be joining the Reynolds family. Reynolds’ successful history is undeniable, and this positions us to leverage the advancements they’ve made in automotive and apply them to the specialty dealership market,” Rogers continued
Having been in business for more than 150 years with an already strong presence in the specialty vehicle market with businesses such as AppOne, Open Dealer Exchange and Reynolds Document Services, executive said the transaction will create “excellent” synergies.
“Further movement into the specialty vehicle dealership space is a natural extension for our approach to technology and helping retailers succeed,” said Rudolph Nieto, senior vice president at Reynolds.
“Incorporating Motility’s technology will open a new arena to share our auto retailing expertise. I’m delighted to explore the commonalities and ensure we are bringing immense value to dealers in the specialty market,” Nieto added.
Serent Capital partner Kevin Frick offered these perspectives.
“It has been an honor to have been a partner for Motility and see their remarkable growth over the last few years,” Frick said. “The Motility team has been able to add three new products and increase their reach through a meaningful strategic acquisition. We look forward to seeing their continued growth and success.”
This roundup of dealer news includes one group rolling out an online retail platform fueled by Cox Automotive’s technology, while another group is growing its footprint near the nation’s capital.
Beginning on the acquisition front, Graham Holdings Co., announced on Wednesday that it has acquired a Toyota dealership and a Chrysler-Dodge-Jeep-Ram dealership in Woodbridge, Va., from the Lustine Automotive Group.
According to a news release from Graham Holdings, the purchase price was not disclosed.
The announcement indicated Christopher Ourisman, a member of the Ourisman Automotive Group family of dealerships, and his team will operate and manage the dealerships. Graham Holdings holds a 90% stake in the stores.
The company also owns four other dealerships, including:
—Ourisman Lexus of Rockville
—Ourisman Honda of Tysons Corner
—Ourisman Jeep Bethesda
—Ourisman Ford of Manassas
According to a news release from Haig Partners, which served as the exclusive sell-side advisor, Graham Holdings is a diversified holding company headquartered in Arlington, Va. It was formerly the owner of the Washington Post newspaper and Newsweek magazine.
Graham Holdings now invests in a variety of industries, including dealerships.
“We thank the Lustine Family for giving us the opportunity to represent them on the sale of their dealerships to the Graham Ourisman partnership,” Haig Partners president Alan Haig said in the news release. “Mr. Burton Lustine built two highly profitable dealerships and has been a fixture in the D.C. Metro auto retail business for decades before passing away late last year.
“And we send our congratulations to Chris Ourisman and the Graham Holdings team on this acquisition that will grow their group in the D.C. metropolitan area, one of the best car markets in the country,” Haig continued. “We like this partnership between knowledgeable operators that have the support of the OEMs with investment firms that are looking for attractive returns on the capital they are putting to work.
“Toyota and Chrysler-Dodge-Jeep-Ram dealerships are performing particularly well over the past year given their ability to produce and deliver attractive products to dealers, and that they remain committed to the traditional franchise system,” Haig went on to say after being involved in the purchase or sale of 15 dealerships in Virginia.
Haig Partners has advised on the sale of 29 dealerships nationwide so far in 2022.
Mike Charapp and Barrie Charapp Beaty of Mahdavi Bacon Halfhill & Young provided legal counsel to Lustine Automotive Group.
Details of WylerComplete, powered by Esntial
In April, the Jeff Wyler Automotive Family completed its first vehicle sale transaction using cryptocurrency, as the dealer group sold a certified pre-owned 2021 Mercedes-Benz S580 to a buyer in Saudi Arabia.
Whether it’s with cryptocurrency, cash or traditional financing, the group is looking to leverage technology even more to retail used vehicles. On Wednesday, Jeff Wyler announced the launch of WylerComplete, a 100% online vehicle buying experience for pre-owned vehicles.
WylerComplete is designed to allows customers to go through the entire car buying process online — from the initial search and financing to remote signing and scheduling delivery — in less than 15 minutes.
WylerComplete shoppers can look forward to the following benefits:
• Wide selection of quality pre-owned vehicles
• Transparent pricing
• Scheduled delivery
• Opportunities with Kelley Blue Book Instant Cash Offer (ICO)
• Aftermarket product and insurance offerings specific to each customer
• Safe and secure deal completion, signing of paperwork and online payments
WylerComplete leverages Cox Automotive’s Esntial Commerce technology, which guides consumers through the online buying process.
“Unlike some of the other online car buying sites, Wyler is locally owned and has been doing business in the Cincinnati market since 1973,” said David Wyler, president of Jeff Wyler Automotive Family. “With the launch of Wyler Complete we can expand our reach in the market and offer the convenience of a fully online shopping experience with the benefit of being able to call our highly knowledgeable sales team or come into our dealership at any point along the way.
“At Wyler, we are always here for our customers before, during and after the purchase of their vehicle to make sure they are completely satisfied,” added Wyler, who serves customers predominantly from Ohio, Kentucky and Indiana.
As hot as those fireworks that will explode during the upcoming Fourth of July weekend is dealership M&A activity since two more transactions became public knowledge on Wednesday.
Beginning with the McGovern Automotive Group, the New England franchised store operator announced its 20th dealership acquisition during the past five years. Now part of the group is Lundgren CDJR: Chrysler Dodge Jeep RAM in Greenfield, Mass.
McGovern has experienced significant growth to achieve revenues near $2 billion, employing more than 1,100 people and selling more than 27,000 vehicles per year across Massachusetts, New Hampshire and New York.
The group’s diverse portfolio spans luxury brands such as Ferrari, Porsche, Maserati, BMW, Audi, as well as other badges such as Subaru, Chevrolet, Toyota, Ford, and Hyundai.
“I started McGovern Automotive Group to build the best auto dealership group in the business with my own hands, without any bureaucratic influences from outside investors,” chief executive officer and founder Matt McGovern said in a news release. “I knew the most important action item was to recruit the most talented management team, which I quickly assembled from the many loyal relationships I cultivated during my 20+ years in the automotive sector.
“It is so enjoyable for me personally to work every day with a group of people that are all fully aligned with our mission,” McGovern continued. “Our employees are hands-down our biggest asset, and the success we’ve had is testament to their hard work, commitment, and determination to be the best in the business; always going the extra mile to deliver value for customers.”
Illinois Ford store gains new ownership
CliftonLarsonAllen (CLA), one of the leading professional service firms in the United States, announced on Wednesday that it helped the Rehkemper family find a new owner for its Tri Ford dealership in Highland, Ill.
The store now it is part of the Lou Fusz Automotive Network, which is based in St. Louis.
Started in 1968 by David Rehkemper, Ed Moenster, and Clinton Rogier, Tri Ford became one of the largest businesses in Highland, which is less than an hour away from St. Louis. By 2006, Rehkemper had become the sole proprietor of Tri Ford.
After his passing in 2010, Monica Rehkemper stepped into the role of sole owner-operator, and along with her son Eric, continued to build the dealership operation.
After operating the dealership for more than a decade, Monica Rehkemper eventually decided it was time to move on to the next chapter of her life.
“The sale of our store brings many emotions as we have been rooted here for over 50 years, but I am thrilled with the outcome,” she said in the news release. “I know the Fusz family will continue to provide members of the Tri Ford community with great care and service. I also know they look forward to affording our great team at Tri Ford opportunities for success and growth in the future.”
Ben Axelrod is the head of the investment banking practice at CLA, which mentioned the firm had conversations with numerous prospective buyers, including detailed discussions with several high-quality groups, before the deal come together with the Lou Fusz Automotive Network.
“It was a pleasure to work with Monica and help her achieve these retirement objectives,” Axelrod said. “We knew it was important to Monica to not only find a strong operator who would continue to build on what Dave, Monica, and Eric have built, but also somebody who has a fantastic reputation in the community and the close-knit dealership ecosystem in the area.
“With the Fusz organization, we found a highly experienced, professional team set on curating their expansion in the greater St. Louis area and the state of Illinois Axelrod continued. “Lou Fusz Automotive was a great fit for Monica and Eric’s objectives and we wish the team at Lou Fusz Ford of Highland success in the next chapter of this dealership.”
Many folks love to vacation either in south Florida or Las Vegas.
Lithia & Driveway are looking to retail more vehicles to potential buyers who might reside in those locations.
The company announced on Tuesday it has expanded its south Florida footprint with the purchase of nine Lehman Auto World stores and two Esserman International stores in Miami-Dade County.
Together, these 11 stores are projected to generate $850 million in annualized revenue, according to a company news release.
According to a news release from Haig Partners, which served as the exclusive sell-side advisor, Lehman Auto World consists of:
—Largo Honda
—Doral Hyundai
—Doral Kia
—Doral Genesis
—Lehman Subaru
—Lehman Hyundai
—Lehman Buick-GMC
—Lehman Genesis
—Lehman Mitsubishi
As a part of this transaction, Lithia also acquired Esserman International which consists of Esserman Acura and Esserman VW in Doral, Fla.
LAD also announced its expansion in Las Vegas with the addition of Henderson Hyundai and Genesis. With this purchase, LAD said it becomes the sole owner of the Hyundai and Genesis stores in the greater metro area.
This is LAD’s eighth Las Vegas metro store purchase in the past year and adds a projected $100 million in annualized revenue.
“We are thrilled to welcome these teams to our Lithia & Driveway family,” Lithia & Driveway president and chief executive officer Bryan DeBoer said in the news release. “The Lehman family has deep roots in south Florida, serving the community for over 86 years. Under its leadership, the stores have achieved a reputation for earning lifelong customers with their impeccable level of service.”
The company explained the additions of Lehman Auto World, Esserman International, and Henderson Hyundai and Genesis bring LAD’s total expected annualized revenue acquired in 2022 to over $2.1 billion.
The company added that it is pacing to exceed its 2025 plan to reach $50 billion in revenue and more than $55 in EPS.
Lithia & Driveway mentioned these acquisitions were financed using existing on-balance sheet capacity.
William “Bill” Lehman, Jr., the principal owner, explained his rationale for the sale through the Haig news release.
“On a personal level, I asked my wife, when do I retire? When do I smell the roses? I’ve had one job my whole career running these dealerships. I’ve had a great run. I’m 81 and I think it’s time. From a corporate perspective, there is continued consolidation in the automotive retail space, so when Lithia expressed interest in starting initial conversations with us, I felt that this was not only the right time but the right company,” Lehman said.
“I thank Alan Haig and the team at Haig Partners for introducing us to Lithia and advising us on the sale process. This was a complicated transaction and they were integral to helping it to come off smoothly. Jonathan Awner at Akerman LLP was also impressive in his ability to negotiate the legal agreements and close a large transaction like this,” Lehman continued.
Alan Haig, president of Haig Partners which represented the seller, added these perspectives.
“We congratulate Bill Lehman, Jr. on the sale of his dealerships to Lithia Motors. He built Lehman Auto World into one of the largest groups in the state. They operate high volume stores, including Hyundai in Doral which consistently ranks as a Top 5 dealership in terms of sales,” Haig said.
“Also, we tip our hats to Bryan DeBoer and the Lithia team with this significant investment in one of the most desirable auto retail markets anywhere in the world. South Florida is growing rapidly and we believe Lithia will do very well with these eleven dealerships. Welcome to South Florida! This transaction demonstrates that buyers remain confident about the future profitability of auto dealerships and want to continue to grow,” Haig went on to say.
Share repurchase activity
Lithia & Driveway offered an update on another part of its business operation.
To date in the second quarter, the company has repurchased approximately 1.9 million shares or approximately 6.5% of shares outstanding at a weighted average price of $284.
To date in 2022, Lithia & Driveway have repurchased approximately 2.1 million shares at a weighted average price of $285.
Under the current share repurchase authorization, approximately $116 million remains available.
“With our strong balance sheet and continued significant free-cash flows, we continue to successfully execute on our revenue 2025 plan, while still opportunistically repurchasing a meaningful amount of shares, providing immediate shareholder return,” DeBoer said in the same news release.
Mergers and acquisitions are happening in automotive adjacent industries, too.
On Monday, carsales.com, one of the largest online marketplaces in Australia focusing on the automotive, motorcycle, and marine spaces, announced the intention to purchase the remaining 51% of Trader Interactive from the current investors, Eurazeo and Goldman Sachs Asset Management to bring its holding up to 100%.
The move to acquire Trader Interactive first started last year, when carsales purchased 49% of Trader Interactive in August.
The deal is expected to close during the third quarter, according to a news release.
Through its brands such as Cycle Trader, RV Trader, Commercial Truck Trader and Equipment Trader, Trader Interactive connects more than 13 million consumers monthly to more than 9,500 dealers, while providing customers with innovative solutions to improve their profitability and drive a more seamless experience with their buyers.
Executives explained the acquisition of Trader Interactive by carsales furthers Trader Interactive’s goal of transforming lifestyles and livelihoods through innovative digital solutions that seamlessly connect people to vehicles for work and play, and to pioneer digital solutions that empower our customers to reach consumers searching for their next vehicle or service by utilizing the international experiences of the carsales brand portfolio.
“I’ve worked with the carsales leadership team over the last 12 months and I have been extremely impressed. We can see how compatible we are from a culture and strategy perspective” Trader Interactive chief executive officer Lori Stacy said.
“The backing of carsales, along with their domain expertise from their worldwide marketplace portfolio, will enable us to accelerate innovation across all of our verticals, while refining and improving both the buying and selling experiences for our consumers and dealers alike,” Stacy continued.
“I wish to thank our sponsors, Eurazeo and Goldman Sachs Asset Management, for their support over the past few years,” Stacy went on to say. “They have been tremendous partners leveraging their consumer focus and technology experience which supported our most recent phase of growth. They have been great supporters of our strategy and we appreciate the value they have brought through their experience and aligned vision. It has been a pleasure to work with them.”
Cameron McIntyre is managing director and chief executive officer of carsales.
“The first year of ownership has been very successful and we have strong conviction in the quality of the Trader Interactive business, the management team and its growth opportunities,” McIntyre said.
“Culturally, there is strong alignment between the carsales and Trader Interactive teams and we are excited to be working more closely together to execute on our strategic objectives.” McIntyre continued.
“We are delighted to have partnered with Trader over the past five years and would like to especially thank the Trader management team, as well as our partners at Eurazeo, for their strong partnership and support for the company,” said Harsh Nanda, managing director and head of technology within private equity, and Joon Park, who is managing director in private equity within Goldman Sachs Asset Management.
“Since we invested in Trader, the company has achieved rapid innovation and growth, further strengthening its leadership position in each of the marketplace verticals it serves. We believe carsales will continue to be a strongly synergistic partner for Trader and we wish them continued success in their next phase of growth,” Nanda and Park went on to say.
Vivianne Akriche is managing director and Henri Domange is director at Eurazeo.
“We want to thank Lori and the team for their strong leadership and incredible partnership over the last five years,” Akriche and Domange said. “We have enjoyed the opportunity to support Trader Interactive, alongside our partners at Goldman Sachs Asset Management, as they have grown share and advanced the value they provide to their customers.
“We look forward to continuing to watch Trader Interactive and carsales successfully grow their businesses together globally,” they added.
This dealership news roundup begins with another Canadian-based group expanding its footprint in the United States.
A couple of days after Steele Auto Group finalized an acquisition with Group 1 Automotive, Knight Automotive Group made a deal with the John Elway Dealership Group.
According to a news release from Performance Brokerage Services, the firm assisted in the sale of John Elway’s Claremont Chrysler Dodge Jeep Ram in California to Knight.
The firm said the dealership will remain at its current location at 620 Auto Center Drive in Claremont, Calif., and has been renamed Knight Claremont Chrysler Dodge Jeep Ram.
Knight Automotive Group was founded by Ted Knight more than 45 years ago, and is now led by his son and president, Kevin Knight.
Knight Automotive Group is one of the largest dealers in Canada with 14 locations. This acquisition marks the group’s third dealership in southern California.
Knight Automotive Group vice president Braeden Mueller said in the news release, “The Knight Group wants to thank Jason Stopnitzky and his team for their efforts in finding another store that aligned with our objectives. Jason has continued to impress us with his level of market knowledge and professionalism through the entire process. We look forward to continuing our relationship with Performance Brokerage Services.”
Stopnitzky is the co-founder Performance Brokerage Services and was the exclusive agent for this transaction.
“We recently worked with Kevin Knight and Braeden Mueller of Knight Automotive Group on their acquisition of two Ford dealerships in California and are proud to have assisted with their third transaction in the US. We look forward to working with both groups again in the future and wish them both tremendous success,” Stopnitzky said.
John Elway Dealership Group is headquartered in Englewood, Colo., and was established in 2004. The group now operates seven dealerships across California, Colorado and Utah.
“This is our second transaction with the John Elway Dealership Group, recently having sold to them Porsche of Salt Lake City. It is always a pleasure working with such a professional and first-class organization, and we thank them for entrusting our firm with the sale,” Stopnitzky said.
Established California VW store changes hands
According to another news release from Performance Brokerage Services, the firm helped to facilitate the sale of Volkswagen of Oakland in California from Mike Murphy to Putnam Auto Group.
Volkswagen of Oakland is located in the heart of downtown Oakland and has been a part of its community since the late 1950s. The announcement indicated the dealership will remain at its current location at 2740 Broadway.
The dealership has been family owned and operated for the past 26 years by the Murphy family, with Mike Murphy serving as president and his two sons, Chris and Mike Jr., serving as general manager and used car manager.
Following the sale, Murphy said, “I have been an auto dealer in the San Francisco Bay area for 40 years. As I was approaching retirement, I reached out to Jason Stopnitzky of Performance Brokerage Services to handle the sale of my dealership. Having worked with Jason in the past on other transactions, I was always impressed with his professionalism and attention to detail. Jason found me an excellent buyer and the whole process went smoothly. I am very grateful to Jason and the entire team at Performance Brokerage Services who were a joy to do business with.”
Putnam Auto Group has been serving the Bay Area since 1965. Putnam Auto Group established their presence in Northern California when Joe Putnam acquired a Buick dealership in Burlingame, and they are now one of the oldest dealership groups in the Bay Area. The group offers 16 brands across its 13 dealerships in California.
During the last past five years, Performance Brokerage Services has advised on the sale of more than 250 dealerships.
“I have known Mike Murphy for the past 20 years. It was an honor and a privilege to help him retire from the auto industry after 40 years and represent his family through this legacy transition. I want to congratulate Mike on his well-deserved retirement and wish him luck on his next chapter,” Stopnitzky said.
Mike Calvert Toyota announces VIP program for registered nurses
Mike Calvert Toyota is looking to help crucial providers of medical care.
The store that’s part of Vaughan Automotive announced its commitment to nurses at the frontline with its Noble Nurse VIP Program. This program is dedicated to emphasizing and appreciating the importance of nurses by providing them with complimentary car services, discounts and programs.
“Mike Calvert Toyota’s priority is to give back to the nurses who have put themselves on the frontline and given so much to the community,” Vaughan Automotive owner and chief executive officer Shawn Vaughan said in a news release.
“To show our appreciation, we want to provide Texas registered nurses with automotive services, programs, and the recognition and appreciation that they deserve,” Vaughan continued.
The Mike Calvert Toyota Noble Nurse VIP Program is available to registered nurses with the purchase of a new Toyota or certified pre-owned Toyota. This program includes oil changes for life (a $1,493.85 value over five years), free sanitation of vehicle interiors, and a free car wash, vacuum and tire shine with service.
Nurses are also provided with a $500 dealer discount on selected vehicles and 10% off accessories, maintenance and repair.
Nurses that are platinum members of the Texas Nurses Association receive prepaid rental assistance with repair (48 hours only) and complimentary services.
During May, which also is National Nurses Month, Mike Calvert Toyota provided any registered nurse with a free oil change and tire rotation.
This year, Mike Calvert Toyota issued 138 free services to nurses, with a total investment of $4,907 in giving back to the community.
The dealership news roundup includes a store opening, another rooftop changing hands and a group expanding its leadership team.
Let’s begin with more activity within mergers and acquisitions, as Haig Partners served as the exclusive sell-side advisor to Group 1 Automotive on the sale of Sterling McCall Hyundai South Loop in Houston to Steele Auto Group.
The deal announced on Thursday involved two of the largest groups in North America. Haig noted that publicly traded Group 1 generated $13.5 billion in revenue and retailed 307,000 new and used vehicles last year, while Steele is Atlantic Canada’s largest auto dealership group with 55 franchised dealerships, seven independent dealerships, three powersports dealerships and eight collision centers.
Steele has since expanded into the U.S., as Sterling McCall Hyundai is its sixth U.S. dealership, all in Texas. The dealership will be rebranded Steele South Loop Hyundai.
With the sale of Sterling McCall Hyundai South Loop, the team at Haig Partners has been involved in the purchase or sale of 79 dealerships in Texas.
“It was an honor to represent Group 1 Automotive in the sale of Sterling McCall Hyundai South Loop in Houston. Sometimes the best buyer for a dealership is located right next door. But in this case, our process surfaced the best buyer in Canada, 2,500 miles away,” Haig Partners president Alan Haig said in a news release.
“This transaction is further proof that many buyers are interested in expanding into Texas,” Haig continued. “With high population growth, low taxes and a business-friendly climate, Texas, Florida and other similar markets bring elevated dealership values. The transaction also demonstrates that demand for dealerships remains high even though the macroeconomic outlook is troubled at the moment.
“Dealerships are still producing record levels of profits, so buyers want more of them,” he went on to say.
Hello Auto Group opens new Subaru dealership
Switching from the Lone Star State to the Golden State, Hello Auto Group this week announced today the opening of its new Subaru dealership in California.
The group now includes Kia of Valencia and Hello Mazda of Valencia (located in Santa Clarita) Hello Mazda of Temecula and Hello Subaru of Temecula (located in Temecula) and Hello Mazda of San Diego.
The new Subaru dealership includes 24 service bays and created more than 70 jobs in the Valencia-Santa Clarita community.
“Hello Auto Group is excited to open a new location in Valencia-Santa Clarita,” Hello Auto president Karl Schmidt said in a news release. “As we grow in the Southern California region, we are confident our new dealerships will provide exceptional value and services to the surrounding community.”
The group mentioned that Subaru moved out of Valencia three years ago, leaving Subaru owners having to travel roughly 18 miles and upwards of an hour outside this community to find the nearest Subaru dealership.
“Our new Hello Subaru dealership in Valencia-Santa Clarita is going to fill a void in the community and will also bring a fresh approach to car sales,” Schmidt said. “The Hello Auto Groups unique upfront business model and commitment to giving back to the community aligns with the Subaru brand and has received positive reception throughout California.”
Hello uses a one-person sales model; a strategy suggested by industry leader Chip Perry.
“We aim to alleviate the stress that comes with buying a car,” Hello general manager Angel Maldonado said in the news release. “Hello Auto Group is proud to offer customer-centric services and processes that allow buyers to have the most seamless purchasing experience possible. It’s with great joy that we can expand our community-based business into new areas, yet still take our core values of being genuine, honest, respectful, and fair with us.”
Hello Auto Group also is committed to giving back to the community, so $25 from every vehicle delivery and $1 from every repair order go to a local philanthropic fund.
Castle Automotive Group adds to marketing leadership team
This week, Castle Automotive Group (CAG) expanded its marketing leadership team by bringing on Giancarlo Montenegro as director of marketing operations.
“Giancarlo’s ever evolving digital marketing experience is vital to the growth and direction of our internal marketing organization,” chief marking officer Sean Seltzer, who joined CAG in May.
“As Castle Automotive Group continues to evolve our marketing into a true transparent experience for all customers, Giancarlo’s skillset and drive for success will be a crucial part of our future,” Seltzer continued as the group currently owns nine dealership locations with 14 franchises throughout Illinois and northwest Indiana,
Montenegro possesses more than a decade of agency experience, overseeing digital strategy for multiple Fortune 100 companies across the automotive, financial/investment and technology sectors. He specializes in the curation of harmonious strategies across platforms to bridge the divide between media efficiencies and direct business objectives.
Montenegro joins the Castle Automotive Group fresh off his tenure as social director at Reunion Marketing. While at Reunion, CAG highlighted that Montenegro led a successful enhancement of Reunion’s product suite, propelling the firm to the forefront of Tier 3 automotive paid social.
We go out West for this round of dealership M&A.
Starting in Washington state, the Bud Clary Auto Group has purchased Auburn Volkswagen from Matt Welch, who acquired the dealership in 2006.
The news was shared in a release from Performance Brokerage Services, which facilitated the sale.
The family-owned Bud Clary Auto Group was founded in 1959 and has 14 stores in Washington representing 11 brands.
Bryce and Kelly Clary have been third-generation owners since 2016.
Bryce Clary said in a news release: “We would like to thank Jason Stopnitzky and Mark Shackelford of Performance Brokerage Services for their truly exceptional service. They helped find the perfect fit for our group, and their guidance throughout the process was invaluable. It could not have gone better with Matt Welch and Auburn Volkswagen, and Performance Brokerage Services made that happen. This is the third time working with Performance, and we are looking forward to working with them in the future!"
Elsewhere in the Pacific Northwest, Performance Brokerage Services announced that Teton Auto Group has purchased Coos Bay Toyota in Oregon from brothers Guy and Lee Hawthorne.
Teton Auto Group, which Mario Hernandez and Jim Parker founded in 2005, has a presence in Idaho, Oregon, Nevada, Colorado and Washington.
