In January, Pritchard Family Auto Stores sold its Ford dealership in Clear Lake, Iowa to the Billion Automotive Group. It will also cease selling new cars at its Clarion Auto Center in the Iowa city by the same name at the end of January. However, the dealership will still continue to offer pre-owned sales, parts and service for their existing customer base.
The retail car business may be hot right now, but not all dealers are set on growing that side of their business. Pritchard Family Auto Stores is focusing instead on its commercial business, and looking to expand.
Joe Pritchard
“We are not abandoning our retail base in Iowa, but we are focused on growing our commercial base across the country,” Joe Pritchard, president of Pritchard Family Auto Stores, tells Automotive Buy Sell Report.
The Clear Lake Ford store was a newly-built Trustmark facility, Ford’s latest image program. Pritchard completed it in 2014. But selling it to the Billion Auto Group, which is based in Bozeman, Mont., was the right move for both groups, says Pritchard.
The Billion group approached Pritchard about acquiring the newly-built dealership in late fall of 2015. “It made sense for us to talk to them as we expand [our commercial business] across the country,” says Pritchard. “I respect the Billion Group. It was a good fit for both parties.”
Pritchard continues to own five new car retail dealerships across northern Iowa, including Ford, Chrysler, Jeep, Dodge, Ram, GMC, Chevrolet, Buick, and Cadillac franchises. They are traditional mom-and-pop stores that serve as feeders for Pritchard’s commercial businesses, which sells Ford, Ram, and Chevrolet – brand medium and light duty trucks and vans.
The commercial business covers much more than vehicle sales, however.
“We are a national and international company that provides a menu of services to fleet and commercial customers,” says Pritchard.
Commercial accounts for around sixty percent of his group’s business, says Pritchard. That includes fleet management, financing, and logistics, as well as manufacturing and assembling tow trucks.
With nine commercial locations nationwide, Pritchard ranks in the top five for commercial sales with the OEMs.
Through its Metro Worldwide division, Pritchard also owns the manufacturing and distribution rights to Winnebago Metro Link shuttle van. It is opening a distributorship in California for Jerr-Dan towing and recovery, Pritchard’s first California operation.
“We are always looking for strategic opportunities,” says Pritchard.
Pritchard family (l-r): Ryan, Bill, Joseph, and Angela (Pritchard) Spiteri
Five generations and counting
Pritchard Family Auto Stores was established in 1913. Joe Pritchard’s son and daughter who work in the business now are the fifth generation to do so. So succession isn’t an issue. But, his daughter Angela and son Ryan are more focused on growing the commercial business at this time, says Pritchard.
Both worked outside the family business before working at Pritchard Family Auto Stores, Angela in the health and life insurance industries, Ryan at a utility body company.
“We have a family rule that a family member can’t come back and work for us until they have worked for someone else,” says Pritchard.
Angela is now the commercial administrative manager at Pritchard Family Auto Stores, Ryan handles commercial sales.
Pritchard Family Auto Stores plans to hold on to its remaining retail dealerships to maintain their successful legacy on that front. Pritchard Family Stores has received two distinctions as Automotive News “Best Dealerships to Work For.” They have been a three-time recipient of Ford’s most prestigious ‘President’s Award’ and were recognized by NADA as the only Dealer in the US to be ranked in the top five in both sales and service satisfaction.
But when asked where he sees business five years from now under the next generation of Pritchards, Joe says: “Their focus is on the commercial side.”
