Sonic Automotive Acquires Subaru and Volkswagen Franchises, Expanding Its Franchised Dealership Network in the State of Colorado

Rhea-AI Summary

Sonic Automotive announced the acquisition of Grand Junction Subaru and Grand Junction Volkswagen in Colorado, enhancing its automotive sales and service network in the region. CEO David Smith emphasized the strategic importance of these franchises in achieving Sonic's goal of $25 billion in total revenues by 2025. The acquisitions mark the beginning of several planned expansions within the franchised dealership business, capitalizing on strong brand demand in Colorado.

Positive

• Expansion of the dealership network in Colorado enhances market presence.
• Acquisition aligns with Sonic's goal of reaching $25 billion in revenues by 2025.
• Subaru and Volkswagen brands are in high demand, promising potential revenue growth.

Negative

• None.

Sonic Automotive, Inc. (“Sonic” or the “Company”) (NYSE:SAH), a Fortune 500 Company and one of the nation’s largest automotive retailers, today announced the acquisition of Grand Junction Subaru and Grand Junction Volkswagen in Grand Junction, Colorado.

“We are very excited to add these two great franchises to the Sonic Automotive family, further strengthening our automotive sales and service network in the Colorado market,” said David Smith, Chief Executive Officer of Sonic Automotive and EchoPark Automotive. “Each of these award-winning dealerships has demonstrated a long-standing commitment to its customers and the local community, which is key to the success of our growth strategy. These acquisitions represent another measurable step toward our goal of $25 billion in total revenues by 2025.”

“These two franchises represent the first of several upcoming acquisitions for our franchised dealership business, and we are pleased to add Subaru to our brand portfolio and continue to grow our partnership with Volkswagen,” said Jeff Dyke, President of Sonic Automotive and EchoPark Automotive. “Both of these brands are in high demand in the Colorado market and will allow us to continue to expand our network in the western part of the state, reaching new consumers beyond our existing footprint.”

Within the State of Colorado, Sonic Automotive operates BMW of Denver Downtown, Mercedes-Benz of Denver, Mountain States Toyota, and Land Rover of Roaring Fork, in addition to EchoPark Automotive locations in Thornton, Centennial and Colorado Springs.

Visit Our Newest Locations

Grand Junction Subaru is located at 651 Market Street, Grand Junction, Colorado. It is open Monday to Friday from 8:30am to 7pm, and Saturday from 8:30am to 6pm. The store can be reached at (888) 480-2307 or online at www.rockymtnsubaru.com.

Grand Junction Volkswagen is located at 653 Market Street, Grand Junction, Colorado. It is open Monday to Friday from 8:30am to 7pm, and Saturday from 8:30am to 6pm. The store can be reached at (888) 461-2109 or online at www.grandjunctionvolkswagen.com.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.

About EchoPark Automotive

EchoPark Automotive is a growing operating segment within the Company that specializes in pre-owned vehicle sales and provides a unique guest experience unlike traditional used car stores. More information about EchoPark Automotive can be found at www.echopark.com.

Forward-Looking Statements

Included herein are forward-looking statements, including statements regarding anticipated future revenue levels, future acquisitions, and future network expansion. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, anticipated future growth in our EchoPark Segment, the success of our operational strategies, the rate and timing of overall economic expansion or contraction, the effect of the COVID-19 pandemic and related government-imposed restrictions on operations, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and other reports and information filed with the Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210728005037/en/

FAQ

What acquisitions did Sonic Automotive announce?

Sonic Automotive announced the acquisition of Grand Junction Subaru and Grand Junction Volkswagen.

What is the significance of these acquisitions for Sonic Automotive?

These acquisitions strengthen Sonic's sales and service network in Colorado and contribute to its revenue goals.

How will the acquisitions impact Sonic Automotive's revenue goals?

The acquisitions are a step toward Sonic's target of $25 billion in total revenues by 2025.

What brands are included in the recent Sonic Automotive acquisition?

The recent acquisition includes Subaru and Volkswagen franchises.

What future plans does Sonic Automotive have following these acquisitions?

These acquisitions represent the first of several upcoming expansions in Sonic's franchised dealership business.