A WELL-KNOWN car dealership has announced that it will sell a majority of its franchises located in the United States.
The dealership is selling its new-vehicle franchises for roughly $60 million.
An auto dealership decided to pull away from the American market after massive loss in sales[/caption]
AutoCanada is selling 13 of its 17 US locations for roughly $60 million[/caption]
The company has agreed to sell 13 of its 17 locations, solidifying its exit from the American market, as reported by Automotive News Canada.
The list includes Chevrolet of Palatine, Crystal Lake Chrysler-Dodge-Jeep-Ram, Hyundai of Palatine, and North City Honda.
It also features two multi-brand dealerships: Autohaus of Peoria, which houses Audi, Mercedes-Benz, Porsche, and Volkswagen, and Bloomington Automall, home to Audi, Lincoln, Mercedes-Benz, Subaru, and Volkswagen showrooms.
“We had the right buyers, at the right price, at the right time,” AutoCanada Executive Chair Paul Antony told Automotive News Canada.
“The business in the U.S. deserves a more focused leader that actually really understands that market, that actually can go after that market and actually operate the business at a high level,” he added.
Antony said he anticipates the sales of Hyundai of Lincolnwood, Kia of Lincolnwood, Toyota of Lincoln Park, and Toyota of Lincolnwood will be finalized by the end of 2025.
Atony said the company plans to refocus its efforts on the Canadian market.
“With the sale of these U.S. assets, plus the cost structure, you’re going to see a completely different AutoCanada within the next three to six months … I think they will be the consolidators of choice,” Antony said.
He also noted that the buyers were “experienced operators” who were familiar with the American auto retail industry.
This comes after the auto dealership struggled with falling sales.
In 2024, AutoCanada reported a loss of $33.1 million for the quarter, down from a $45.2 million increase during the same period in 2023.
Antony said it did not respond “swiftly enough to adequately counter increasingly challenging market demands.”
“Our recent performance has not met our own expectations and it has become clear to me that we need to further deepen our focus on both deleveraging,” he told analysts on a conference call earlier this month.
“And the profitability of our core dealership operations.”
What to do if a dealership closes
If you recently bought a car or motorcycle from a dealership that suddently closed, you may feel anxious about how that affects you.
When you finance a new car or motorcycle or need warranty repairs done at an authorized dealership, a sudden closure can make some people think they’re out of options or worry their car will be repossessed.
If you’re in a situation that sounds like that, here are a few things you can do after receiving an official notice:
- Notify the bank hosting your loan of the closure to make them aware. If the financing is done through the dealership itself, it’s important to contact the dealership or your salesperson to ask how to keep up your payments. Many dealerships will send the lien (the title and registration that will only be released to the buyer after the debt is paid) to a financial institution to keep.
- If the dealership cannot be contacted through traditional means, most states allow drivers to apply for the title and registration through the DMV.
- If you leased a car from a dealership that went out of business, instructions should be sent as to which dealership to bring your vehicle to when the lease expires. If not, contact the dealership.
- A factory warranty through the manufacturer will be honored at any other authorized dealership. However, an extended warranty through the dealership may not be honored at other repair shops, so it’s important to seek that information from the dealership as soon as possible.
Source: Consumer Law Group
After the massive loss, AutoCanada considered selling other “non-profitable and non-core assets.”
The company was already reeling from a CDK Global cyberattack that occurred in June, which informed the decision to shut down US branches.
The losses only affected the company’s US operations — the company reported a net income of $2.4 million from its Canadian dealerships.
As AutoCanada gets ready to ditch its US dealerships, big changes are already underway at the top.
Antony is backing away from the driver’s seat, with the company announcing on July 11 that he’ll step down as executive chair once they lock in a new CEO.
AutoCanada did not immediately reply to The U.S. Sun’s request for comment.
