It won't take long for readers of Automotive News' latest ranking of the top 150 dealership groups based in the U.S. to notice changes in the lineup.
Starting at the top, for the first time, is auto retail giant Lithia Motors Inc.
Lithia, once the smallest publicly traded dealership group before embarking on a multiyear dealership buying spree, passed longtime No. 1 AutoNation Inc. in new vehicles sold in 2022. The toppling of AutoNation, which had held the top spot since 1997, was expected as Lithia purchased dealerships at a rate far outpacing its rival.
It's fitting that Lithia, which has helped drive the dealership buy-sell market to new heights with its acquisition strategy, is now No. 1 on a list that strongly reflects the impact of consolidation in auto retail.
After seeing megadeals completed in 2021, new buyers entered the market, including dealers who hadn't previously explored growth through the acquisition space, said George Karolis, president of Presidio Group, an investment banking and advisory firm in Denver and Atlanta.
Some groups, many of which acquired multiple dealerships in 2022 and 2021, made big jumps. Take Shottenkirk Automotive Group Inc., up 43 spots to No. 56, or Ciocca Dealerships, up 32 spots to No. 51, for example.
Ben Keating, owner of Keating Auto Group, credited the seven dealerships he bought in 2021 for his group's sales growth, describing three of those stores as high-volume Hyundai locations. Keating Auto Group climbed 13 spots to No. 15.
One newcomer to the list gave off an energized vibe when talking about the industry and his company's ranking.
McGovern Automotive Group, a 6-year-old retailer, made its list debut at No. 65. CEO Matt McGovern said the dealership group will be ready to tackle whatever happens next in the industry.
Another newer and growing company, Empire Automotive Group, jumped 31 spots to land at No. 67 on the list.
"We still feel we have the ability to grow," Empire CEO Michael Brown told Automotive News.
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