How These Companies Are Taking Over Car Dealerships
Car dealerships have been mom and pop businesses for much of their existence. But the industry has been slowly consolidating. Six publicly traded dealership groups – AutoNation, Lithia Motors, Group1, Sonic Automotive, Penske, and Asbury – have been on a shopping spree, buying up a small but growing share of dealerships. These larger groups have been wildly profitable. But they face challenges. Tesla, Rivian and others are trying to sell cars directly. Consumers and automakers have been rebuking dealers for record high prices. But these groups have a lot of opportunity to expand further – they only control a small share of the total dealership market. They are also going online.