By Alysha Webb, Editor and Publisher
I look north this week in my discussion with AutoCanada president, Tom Orysiuk. I became interested in AutoCanada after seeing several notices in quick succession of acquisitions of Chrysler Dodge Jeep Ram dealerships by the group. While Chrysler’s fortunes are looking up down here, it is kicking some butt up in Canada, I discovered, in a head-to-head fight with Ford for the sales lead. AutoCanada likes Chrysler stores, especially its Ram brand. AutoCanada is on a buying spree and I expect to see it acquire more Chrysler Dodge Jeep Ram stores in coming months. That will be good for the group’s bottom line in several ways. Canadian’s like four-wheel drive on their Ram trucks and they buy lots of accessories, two good profit areas for dealerships. Their service business is also going strong, according to Orysiuk.
Given the number of dealerships in Canada – around 3,400, according to the CADA – AutoCanada’s acquisition record in the last few months is pretty astounding. The group has acquired at least 11 new stores this year, and I say “at least” because it may have acquired a few more by the time this column posts. At writing it had 44 dealerships. Succession issues seem to be the main reason for the availability of so many stores. Canada’s family-owned dealerships are facing the same problems as those in the U.S., including no family member interested in taking over the business and trouble getting enough cash to buy a dealership. At the same time, the Canadian light vehicle market is growing at a healthy pace. I predict U.S. companies in all aspects of the buy sell industry will start looking to our neighbors to the north for business in coming months.
