A 30-day supply back for 3 public auto groups

A 30-day supply back for 3 public auto groups https://ift.tt/S0IgRxm

Asbury Automotive Group Inc. has more than 60 days' supply of its No. 2 brand Stellantis, though stop-sale orders have contributed to that stockpile.

Carvana's creditors offer to swap debt for equity, defer payment

Carvana's creditors offer to swap debt for equity, defer payment https://ift.tt/zhL8vdG

Creditors holding about 90 percent of Carvana Co.'s bonds have been pitching the beleaguered used-car company on ways to pare down debt and improve liquidity, including a proposal for a debt-for-equity swap, according to people with knowledge of the situation.

The group, represented by White & Case and PJT Partners, recently offered to swap a substantial amount of unsecured notes for equity in Carvana, the people said, asking not to be named discussing a private matter. The bondholders also said they would allow the company to pay some of its interest with additional debt, a feature known as payment-in-kind.

The proposal isn't final and terms could change. Carvana has not formally engaged with the group's offers, the people added, asking not to be identified because the matter is private.

Bondholders had earlier signaled their interest in moving their existing unsecured positions into new first-lien debt and allowing the company to pay interest in kind for two years, the people said. The plan would save Carvana more than $1 billion in cash interest, the people added. The group also offered to provide new money to the company and asked Carvana's equity holders to inject roughly $1 billion into the business, they said.

Representatives at Carvana, one of its advisers Kirkland & Ellis, and White & Case didn't respond to requests for comment. PJT and another Carvana adviser Moelis & Co. declined to comment.

To maintain a united front, members of the bondholder group have also agreed to extend a cooperation agreement to end of November, with the ability to extend the pact to May 2024, the people said. The group, which includes Apollo Global Management Inc. and Pacific Investment Management Co., came together last year to negotiate with Carvana in preparation for a restructuring.

Led by Chief Executive Officer Ernest Garcia III and his father, Ernie Garcia II, Carvana was one of the companies that benefited from the pandemic economy. The firm raised billions of dollars during the easy-money era to buy droves of pre-owned autos and lure buyers with cheap loans. But its fortunes turned as auto production rebounded and higher interest rates crimped consumer spending.

Carvana had earlier proposed that creditors trade $1.3 billion in debt for $1 billion in notes secured with various assets while shareholders wouldn't suffer a loss. That exchange offer was quickly shot down by the group.

To drum up investor interest, Carvana sweetened terms of the exchange offer and extended the participation deadline to May 3. The company is now staring down at a $168 million interest payment on bonds due in May.

The company's 10.25 percent bond due 2030 last changed hands at around 55 cents on the dollar, according to Trace. Its shares have slumped 89 percent over the past twelve months.

How daily checkouts, e-contracting boosted this store's F&I profits

How daily checkouts, e-contracting boosted this store's F&I profits https://ift.tt/zWXUPBH

Taylor CDJR's daily improved communication and digitized F&I sales increased profit per vehicle to more than $2,400 from $1,100.

Vroom reduces employee headcount by about 120

Vroom reduces employee headcount by about 120 https://ift.tt/gaESU3w

The reduction is included as part of an "organizational restructuring" that Vroom has implemented amid a reexamination of "all facets of the business," the company said in a regulatory filing.

Stellantis, GM, Mazda and Ford dealerships sell across 4 states

Stellantis, GM, Mazda and Ford dealerships sell across 4 states https://ift.tt/kHyxurA

Domestic and import dealerships in Massachusetts, Virginia, Wisconsin and Indiana traded hands in three first-quarter deals and a third-quarter 2022 transaction.

Mercedes more upbeat on signs U.S., China picking up

Mercedes more upbeat on signs U.S., China picking up https://ift.tt/HbFanjd

Demand in Europe was still sluggish, but the automaker expects that to improve in the coming months as consumer confidence rebuilds.

Auto retail giant Lithia Motors says it cut about 1,000 jobs

Auto retail giant Lithia Motors says it cut about 1,000 jobs https://ift.tt/dQ6w1oi

Auto retail giant Lithia Motors Inc. told analysts last week that it cut about 1,000 positions.

Sonic Automotive Q1 net income drops 51%

Sonic Automotive Q1 net income drops 51% https://ift.tt/Tlg1HDM

Sales at Sonic Automotive's EchoPark brand rose 34 percent in the first quarter, but the auto retailer saw lower gross profits per new and used retail vehicles, as well as lower sales volume from its franchised dealerships.

Sedano scoops up 3 stores near home

Sedano scoops up 3 stores near home https://ift.tt/LEx40j5

Sedano's acquisitive first-quarter brings his dealership count to 5 and adds a store along California's iconic Mile of Cars in National City.

Toyota edges past 9.1M vehicle output goal, warns chip shortage lingering

Toyota edges past 9.1M vehicle output goal, warns chip shortage lingering https://ift.tt/YHyL60a

Toyota produced 9.13 million vehicles in the 12 months through March 31, up from 8.57 million in the previous fiscal year.

Group 1 Automotive improves first-quarter revenue as net income drops

Group 1 Automotive improves first-quarter revenue as net income drops https://ift.tt/OiesDbB

Acquisitions, service business growth and elevated vehicle pricing helped the Houston dealership giant improve its revenue numbers in a tough market.

Lithia exits Alabama with sale of Subaru store; sells 2 other dealerships in Q3 deals

Lithia exits Alabama with sale of Subaru store; sells 2 other dealerships in Q3 deals https://ift.tt/2SobjU6

Lithia Motors made its first divestiture of 2023 with the sale of a Subaru store in Alabama, which was the auto retail giant's entry into the southeastern state. The group also sold two other dealerships last year in third-quarter transactions.

Penske Automotive Q1 earnings drop on record revenue

Penske Automotive Q1 earnings drop on record revenue https://ift.tt/Ms5Nqz2

Penske Automotive's Q1 retail automotive same-store service & parts revenue was $643 million, up 10 percent from the same period a year ago.

Asbury net income, revenue down in Q1 after stores dropped in 2022

Asbury net income, revenue down in Q1 after stores dropped in 2022 https://ift.tt/XR32kwF

Asbury sold 16 dealerships in 2022: Four in the first quarter, three in the second, and nine in the fourth.

Meta's revised auto listing restrictions have mixed effect on dealers

Meta's revised auto listing restrictions have mixed effect on dealers https://ift.tt/FztOgva

Meta as of Jan. 30 stopped letting dealerships create used-vehicle listings using a Facebook business page.

GM Q1 earnings: Employee, dealer buyouts push net income down 19%; full-year guidance up

GM Q1 earnings: Employee, dealer buyouts push net income down 19%; full-year guidance up https://ift.tt/ecJLjso

North American pretax profit rose 14 percent to $3.6 billion.

U.S. Auto Sales institutes furloughs

U.S. Auto Sales institutes furloughs https://ift.tt/snv6ZgW

LinkedIn posts Monday by a store manager and assistance compliance manager announced they were let go and looking for work.

Paying over sticker? There are choices

Paying over sticker? There are choices https://ift.tt/yqdo2pi

So 27 percent of the people who paid over sticker price said they would never buy that brand again, according to a survey by GfK. Really? Why did they pay over sticker price in the first place?

Which dealership groups grew the most by volume of used-vehicle sales?

Which dealership groups grew the most by volume of used-vehicle sales? https://ift.tt/i1GHMPm

23 dealership groups on the our top 100 dealership groups by used-car sales list recorded double-digit percentage gains in used-vehicle retail units sold. Many of those gains came as a result of dealership acquisitions made in 2021 and 2022.

Car Pros dealership group emphasizes the human element of car sales

Car Pros dealership group emphasizes the human element of car sales https://ift.tt/oQdkvyE

Car Pros has a companywide training program centered around the human element of car sales.

Former Mississippi Toyota dealership comptroller charged with embezzlement

Former Mississippi Toyota dealership comptroller charged with embezzlement https://ift.tt/pPd8f7Z

Latisha Jones Smith, 50, faces felony embezzlement charges for allegedly stealing around $71,000 from a Toyota dealership in Philadelphia, Miss.

Kia, Nissan, Ford, Stellantis and GM dealerships sell across 5 states

Kia, Nissan, Ford, Stellantis and GM dealerships sell across 5 states https://ift.tt/rUpWQwe

A West Coast auto retailer bought and sold dealerships, a dealer acquired his first Ford store, a group grew to three stores and two brothers expanded their holdings, all in transactions that closed in the second and fourth quarters of 2022 and the first quarter this year.

Lincoln's plan to regain ‘mojo': Fewer dealers, more fluid EV strategy

Lincoln's plan to regain ‘mojo': Fewer dealers, more fluid EV strategy https://ift.tt/52jXV4L

After three years of declining U.S. sales, the brand's new president says a smaller dealer network is needed to be successful.

AutoNation Q1 results: Declines in net income, revenue and vehicle sales

AutoNation Q1 results: Declines in net income, revenue and vehicle sales https://ift.tt/jAPvWs6

The auto retailing giant partially offset its declines with gains in new-vehicle and after-sales revenue.

Lithia cuts Driveway Finance Corp. income forecasts through 2025

Lithia cuts Driveway Finance Corp. income forecasts through 2025 https://ift.tt/RMFJQyA

Lithia Motors, in an updated forecast, expects its captive finance company, Driveway Finance Corp., to post a loss of $40 million in 2023.

Focus on follow-up

Focus on follow-up https://ift.tt/p5GyFDs

Following up with customers who don't initially buy F&I products in the business office could pay off and increase product sales.

Lithia's Q1 net income drops 33 percent on lower gross profits per vehicle

Lithia's Q1 net income drops 33 percent on lower gross profits per vehicle https://ift.tt/mkIGU46

Lithia Motors, which surpassed AutoNation Inc. in new vehicles sold in 2022 to take the No. 1 spot, said new- and used-vehicle sales were up in the first quarter, but average gross profits per retail unit for new and used vehicles fell.

Bill that aimed to block automaker ability to reassign buy-sell deals fails in West Virginia

Bill that aimed to block automaker ability to reassign buy-sell deals fails in West Virginia https://ift.tt/VrLqOdf

A bill that aimed to block automakers' use of right of first refusal on dealership buy-sell deals in West Virginia failed to move in the House of Delegates before the state's legislative session ended last month.

Flow Automotive buys Mercedes-Benz, Toyota, Honda, Subaru and Stellantis dealerships

Flow Automotive buys Mercedes-Benz, Toyota, Honda, Subaru and Stellantis dealerships https://ift.tt/QFB5LDf

Flow Automotive Cos. expanded its presence in Charlottesville, Va., in one of the largest dealership acquisitions of the year, as tracked by .

Southern used-car dealer U.S. Auto Sales closes locations

Southern used-car dealer U.S. Auto Sales closes locations https://ift.tt/uI5qlJ9

U.S. Auto Sales' website carried a popup Tuesday morning stating its used-vehicle dealerships had closed, but it was "working on a solution to re-open them as soon as possible."

Tesla profits after price cuts the focus of Q1 earnings

Tesla profits after price cuts the focus of Q1 earnings https://ift.tt/8yEZ7XQ

Tesla is expected to report lower vehicle gross margins after juicing deliveries this year with multiple rounds of price reductions.

Former megadealer Bernie Moreno trying again for Senate seat

Former megadealer Bernie Moreno trying again for Senate seat https://ift.tt/wZ576fs

The former megadealer has filed paperwork to run for Senate in Ohio and is being encouraged by former President Donald Trump.

Dealer anniversary

Dealer anniversary https://ift.tt/e5y2Axd

The dealer featured this week is Winston Pittman Sr., dealer principal of Chatham Parkway Toyota in Savannah, Ga.

Hyundai leans on EV tax credit lease provision

Hyundai leans on EV tax credit lease provision https://ift.tt/mpK4Lbe

Hyundai is making use of the leasing provision in the EV tax credit rules to keep its electric models in the fight.

Bob Loquercio Auto Group buys Lexus, Toyota and Ford dealerships

Bob Loquercio Auto Group buys Lexus, Toyota and Ford dealerships https://ift.tt/kYrzHhI

The acquisitions bring the group's franchised dealership count to 14 and includes its first Lexus store.

Ourisman Cars adds Ford, Toyota and Stellantis dealerships

Ourisman Cars adds Ford, Toyota and Stellantis dealerships https://ift.tt/bxJrASF

Ourisman Cars, a group of dealerships within Ourisman Automotive Group, bolstered its Maryland presence with third-quarter 2022 and first-quarter 2023 acquisitions.

Polestar turns to certified pre-owned to offset limited new inventory

Polestar turns to certified pre-owned to offset limited new inventory https://ift.tt/aAJpzWZ

A new CPO program will help amplify brand awareness, Polestar North America boss says.

CarMax quarterly net income, used-car sales plunge, stock rises

CarMax quarterly net income, used-car sales plunge, stock rises https://ift.tt/TdX8FW6

CarMax said net income plunged 57 percent to $69 million in the quarter ended Feb. 28. But CarMax shares gained 9.6 percent to $72.21.

Former MLB players Brian Dorsett and Dorian Boyland buy and sell dealerships in Q1

Former MLB players Brian Dorsett and Dorian Boyland buy and sell dealerships in Q1 https://ift.tt/M41vAeV

Two dealerships trading hands involved former Major League Baseball players Dorian Boyland and Brian Dorsett, and a group bought its second Long Island store, all in the first quarter, while another dealer purchased his second store in fourth-quarter 2022.

Obituary: Former Hendrick CEO Edward Brown III dies at 74

Obituary: Former Hendrick CEO Edward Brown III dies at 74 https://ift.tt/IOKSnlH

In 2010, banking executive Brown came out of retirement to become CFO for Hendrick.

Capital One exits floorplan lending business

Capital One exits floorplan lending business https://ift.tt/Jurw9xe

Capital One decided to exit floorplan lending on March 29, but will stay in the auto finance business.

CarMax quarterly net income, used-car sales plunge

CarMax quarterly net income, used-car sales plunge https://ift.tt/S8xkV3i

CarMax said net income plunged 57 percent to $69 million in the quarter ended Feb. 28.

Nonprofit turns to virtual reality to train more auto technicians

Nonprofit turns to virtual reality to train more auto technicians https://ift.tt/vdC520R

Vehicles for Change worked with a Houston company on the curriculum. They have a virtual reality lesson on oil changes and plan to add more lessons.

Ford dealership employee in Wis. killed at work remembered as ‘jack of all trades'

Ford dealership employee in Wis. killed at work remembered as ‘jack of all trades' https://ift.tt/rb19Hve

Nicholas Jozefowski, of Johnson Creek, Wis., had worked in automotive and trades for "the majority of his life," according to his obituary.

New Apple CarPlay integration helps improve Domino's pizza ordering — from customer dashboards

New Apple CarPlay integration helps improve Domino's pizza ordering — from customer dashboards https://ift.tt/yq63vem

The new Apple CarPlay technology allows motorists to order a pizza with a few taps on the screen.

Selling over sticker price can backfire on car dealer, automaker

Selling over sticker price can backfire on car dealer, automaker https://ift.tt/VW0t93Y

Survey: 29% of customers charged above MSRP told GfK they would never buy that brand of vehicle again.

Dealerships' EV charging cost savings may be found in solar panels

Dealerships' EV charging cost savings may be found in solar panels https://ift.tt/ZYtRL1j

Dealerships are paying for expensive EV charging stations and hoping solar panels cover some of the costs.

Dealer anniversary

Dealer anniversary https://ift.tt/gu0iG2U

The dealer featured this week is Jay Darling, dealer principal of Darling’s Nissan in Bangor, Maine.

Wholesale used-vehicle prices rose through Q1, but may be at a turning point

Wholesale used-vehicle prices rose through Q1, but may be at a turning point https://ift.tt/AU73iZ2

Cox Automotive's Manheim Used Vehicle Value Index rose 1.5% in March from February.

Iconic Felix Chevrolet dealership among stores sold in 4 states

Iconic Felix Chevrolet dealership among stores sold in 4 states https://ift.tt/5Kp9bPu

L.A.'s iconic Felix Chevrolet changed hands, a group added another Kia store to its mix, and dealerships selling General Motors and Stellantis brands traded hands in fourth-quarter and second-quarter transactions.

EV tax credit rulebook clearer, but Treasury's work is not done

EV tax credit rulebook clearer, but Treasury's work is not done https://ift.tt/QOXWZzk

How strictly the U.S. Treasury Department defines and enforces the law's "foreign entity of concern" provision could affect the Biden administration's objectives to drive EV adoption and build a domestic supply chain.

Illinois state Senate approves bill to codify e-signatures, home vehicle delivery

Illinois state Senate approves bill to codify e-signatures, home vehicle delivery https://ift.tt/gmTE917

If also passed in the state House and signed into law, S.B. 1896 would amend the Illinois Vehicle Code to clarify language pertaining to home vehicle delivery and electronic signatures.

Volvo sales dip 6% in March; Q1 deliveries edge up

Volvo sales dip 6% in March; Q1 deliveries edge up https://ift.tt/omLKrHg

Volvo Car Corp.’s sales in China, its largest market worldwide, dropped six percent to 11,608 in March due to weak demand for gasoline-powered products. 

Gregg Young expands dealership count in Iowa

Gregg Young expands dealership count in Iowa https://ift.tt/oC3d5cg

The Gregg Young Automotive Group, with stores in Iowa and Nebraska, added four dealerships in three transactions late last year to add to its presence in the Hawkeye state.

Group 1 Automotive was the seller of a N.J. Acura store

Group 1 Automotive was the seller of a N.J. Acura store https://ift.tt/0UtXlfK

New Hampshire's Key Auto Group bought three dealerships on the East Coast and one in Nevada in three separate transactions. Group 1 Automotive was the seller of a N.J. Acura store.

Work-from-home trend gives sales, F&I staff chance to upsell, GfK says

Work-from-home trend gives sales, F&I staff chance to upsell, GfK says https://ift.tt/xJlg2NF

54 percent of consumers planning to buy a new vehicle commute daily, while 46 percent either work exclusively from home or have flexible arrangements. Those with flexibility have the most income and are more likely to be planning to buy their first luxury vehicle.

There's no single growth strategy for dealers, M&A panel says

There's no single growth strategy for dealers, M&A panel says https://ift.tt/3RdCQ64

Panelists speaking on M&A activity at the J.D. Power Automotive Forum in New York said there are several growth strategies dealers can pursue, but they agreed that it was important to focus on being a better operator.

Nissan strategy means more partnership with dealers, Papin says

Nissan strategy means more partnership with dealers, Papin says https://ift.tt/fdukt5K

Retailers should be involved through multiple owners as well as schedule follow-up visits with EV buyers.

Column: Adapting to bank failures

Column: Adapting to bank failures https://ift.tt/uvQtSnw

Retail auto tech startups affected by the Silicon Valley Bank collapse can be resilient and survive the crisis. But longer-term concerns remain about inflation and rising interest rates.

Chevy, Audi, Stellantis and Ford dealerships trade hands in 4 states

Chevy, Audi, Stellantis and Ford dealerships trade hands in 4 states https://ift.tt/gzjwH0v

Two of the country's largest dealership groups made first-quarter purchases while two other growing groups on the East Coast also made early 2023 purchases.

Former employee at Michigan Chevy-Buick dealership accused of embezzling $68,000

Former employee at Michigan Chevy-Buick dealership accused of embezzling $68,000 https://ift.tt/6ER2UZr

A former Betten Baker Chevrolet-Buick of Cadillac title clerk is on bond after being accused of embezzling $68,000.

STELLANTIS: U.S. sales dip 9.1% in Q1

STELLANTIS: U.S. sales dip 9.1% in Q1 https://ift.tt/lKkPEfx

Jeep and Ram volume was down, but Chrysler and Dodge posted gains.

HYUNDAI: U.S. sales rose 16% to 184,449 in Q1 after strong March

HYUNDAI: U.S. sales rose 16% to 184,449 in Q1 after strong March https://ift.tt/LoPNSVp

Hyundai Motor America closed the first quarter strong with best-ever March sales and also posted the fifth consecutive month of record sales, while crossovers continue to provide a major lift to Genesis.

SUBARU: Sales jump 23% in March with Crosstrek record

SUBARU: Sales jump 23% in March with Crosstrek record https://ift.tt/wC5TtkL

Subaru of America's volume rose 8.3 percent for the first quarter as the Crosstrek remained the brand's top-selling vehicle.

TOYOTA/LEXUS: Toyota sales fall 9.1% in March, despite Lexus gain

TOYOTA/LEXUS: Toyota sales fall 9.1% in March, despite Lexus gain https://ift.tt/5z6FZ8E

Toyota Motor North America said its sales fell 9.1 in March to 176,456 as declining sales at Toyota dragged down a positive month at Lexus. For the first quarter, the automaker's sales fell 8.8 percent to 469,558.

Column: This year's annual dealership group ranking chock-full of change

Column: This year's annual dealership group ranking chock-full of change https://ift.tt/VpkTWSZ

It won't take long for readers of Automotive News' latest list of the top 150 dealership groups to notice changes in the lineup.

2023 Automotive News list of the top U.S. dealership groups shows many shifts

2023 Automotive News list of the top U.S. dealership groups shows many shifts https://ift.tt/EgXqezU

The groups on the annual Automotive News list commanded a bigger percentage of the U.S. industry's new light-vehicle sales in 2022 and held a growing share of the U.S. dealership count.

Which dealership group generated the most revenue per dealership in 2022?

Which dealership group generated the most revenue per dealership in 2022? https://ift.tt/YBaMbRj

Sam Pack Automotive Group in Dallas, No. 79 on the overall list, took the title of the group with the highest average revenue per dealership, up from third place in that category a year ago.

The top 150 groups' share grows larger

The top 150 groups' share grows larger https://ift.tt/j3PfXWh

The six publicly traded groups on the list collectively retailed 1,094,459 new vehicles, up 1.5 percent.