Consolidation loomed large this week as publicly-listed Lithia Motors Inc. gobbled up family-owned LA Auto Group. I was pleased to hear that the Shammas family, owners of the Group, will keep Felix Chevrolet, the first dealership the family owned. I love the Felix the Cat neon sign that still announces the dealership, located near downtown Los Angeles.
Felix Chevrolet may continue to thrive despite factors such as factory facility demands and rising HR and compliance costs which are driving single-point stores to sell out. (I hope GM never makes the Shammas family get rid of the Felix sign….).
There will continue to be a place for well-run single-point stores in the dealership world of the future, says Gordon Scott of Clifton Larson Allen LLP. I talked with him this week about a report CLA helped compiled as a member of Auto Team America on the dealership in 2030. We discussed the impact of technology on the dealership model and how it is causing some valuation concerns. Despite the changing technology landscape, he figures dealers will adapt. Read about it in this issue.
One conundrum dealers are already facing, and one that will continue to arise, is whether there is really a need for huge facilities. Some of the real estate dealership need is used to stock inventory. There are ways to use that space more efficiently, however, such as making multi-level parking. This week we re-visit a column from CityLift about their solution to that issue.
And of course we have Transaction News.
Enjoy!
