Suburban stores at greatest risk of consolidation?Jan. 23
NADA consultant Glenn Mercer says suburban dealers are most likely to sell out in the next wave of store consolidation. Rural stores have lower volume, but also are less subject to price competition. And suburban real estate is worth more, so the suburban dealer has exit options.
Small dealerships lack the clout and capital to competeOct. 31, 2016
Regardless of geography, market size or franchise, many dealers with a single point or a small group find they must either become bigger or sell. The retail business model now favors big groups, they say, which can more easily hit factory sales targets, afford dealership improvements and achieve cost benefits.
Doug Knust wants all dealers' voices heardOct. 31, 2016
Doug Knust provides a big voice for dealers operating small volume stores. The NADA director representing South Dakota has taken on the unofficial and self-appointed role of advocate for NADA members operating in small and rural communities.
How can 2-store minority dealers compete?Oct. 31, 2016
As dealership groups get bigger and gain greater economies of scale and operational efficiencies, dealers operating stores that are not part of a dealership group will have trouble competing, the president of the National Association of Minority Automobile Dealers, said.
AutoNews Now: A way out for Cadillac, dealersSept. 23, 2016
Carbone helps Lithia expand in NortheastSept. 19, 2016
Larry H. Miller group eyes acquisitionsJuly 18, 2016
2016 will see fewer dealership acquisitionsJan. 25, 2016
Some retailers say dealership acquisition prices are too high, citing a drop in public dealership groups' stock prices and narrowing dealership margins. They predict that buy-sell deals will slow in 2016, as buyers trim what they're willing to pay and sellers resist that trend.
Enjoy good times, and keep an eye on the road aheadJan. 4, 2016
A new kind of buy-sell playerOct. 19, 2015
With the Bechtel family's majority purchase of Morrie's Automotive Group in Minneapolis, a new kind of buyer steps up in the dealership acquisition market: family offices -- firms set up to invest wealthy families' money.
My Saturn stores were profitableJune 29, 2015
My company, Lucas Dealership Group, owned and operated 30 new-car dealerships between 1960 and 2000, including six Saturn stores. GM wanted to purchase them back, and it was willing to pay a goodwill/blue-sky premium. GM knew Saturn dealerships were profitable and had faith in the future of the product.