CarMax buys 2 D/C stores
RICHMOND, Va. - CarMax Group has bought two more DaimlerChrysler dealerships - Prince Chrysler-Jeep-Eagle and LAX Dodge - for an undisclosed price. The dealerships are in Inglewood, Calif., near Los Angeles. Last month, CarMax, the auto retail subsidiary of Circuit City Stores Inc., acquired Fairway Chrysler-Plymouth-Jeep in Orlando, Fla. CarMax, known primarily for its 29 used-car superstores, already operates two Chrysler-Plymouth-Jeep franchises at used-car superstores in Atlanta and a Jeep franchise at its multifranchise CarMax Auto Mall in Kenosha, Wis.
CARMAX SALES UP
RICHMOND, Va. - CarMax Group reported sales of $150.5 million during April, up 45 percent from April 1998. Although same-store sales for the month rose 1 percent, the improvement reflected an easier prior year comparison, according to parent company Circuit City Stores Inc.
VOLVO URGES LINK
GOTHENBURG, Sweden - Heavy-truck maker AB Volvo continues to pursue Swedish rival Scania. Citing the high cost of product development, AB Volvo CEO Leif Johansson last week proposed that the two companies cooperate on a 'precompetitive' level. Two weeks ago, AB Volvo upped its stake in Scania from 13 to 20 percent. Scania officials said last week they would not respond to Johansson's proposal.
MAKERS GET ASSIST
ATLANTA - Manufacturers had unlikely allies in their campaign against a Georgia bill that restricts factory-owned dealerships. Consumer and e-commerce advocates lobbied against the bill because they thought it would hamper Internet sales. The measure might restrict out-of-state dealers or manufacturers from selling vehicles online in Georgia, said Frank Dunne, a General Motors attorney. The bill, signed last week by Gov. Roy Barnes, says manufacturers can sell new vehicles only through franchised dealerships.
FIAT WANTS TO JOIN AAM
WASHINGTON - Fiat Auto U.S.A. Inc. wants to join the Alliance of Automobile Manufacturers, the new trade association representing the former Big 3 and six overseas-based automakers. A Fiat spokeswoman said she could not discuss the issue. An industry official close to the alliance confirmed the application for associate membership and said it will be considered. The only Fiat products currently sold in the United States are cars from its Ferrari subsidiary.