One of my favorite moments in The Sopranos involves mobsters trying to shake down a large, faceless corporation. When the mobsters are told by the manager of a local store that if he acquiesces, he’ll be fired and replaced by someone else and the corporation will make sure the mob doesn’t get any money.
Perplexed, one says to the other “it’s over for the little guy.”
That scene came to mind when reading/editing Matt’s piece on Penske Automotive Group scooping up another prolific Ford dealership.
Penske is one six large dealership groups that collectively own about one-third of new-vehicle sales. The groups, in order of sales, are Lithia, AutoNation, Penske, Group 1 Automotive, Asbury Automotive, and Sonic Automotive.
My question to you is — are these groups going to continue to grow and take out the smaller dealership groups out there?
It’s a tricky question, because there are small dealer groups that own multiple stores but are controlled or owned by one person. Think Perillo or Napleton if you’re familiar with the Chicago market.
So it’s not just a binary of those who own one store versus large companies that own hundreds. It’s a spectrum, with some dealership groups being small chains with maybe 5-10 locations.
Keeping that in mind — do you think groups like Penske and Lithia will swallow the dealership industry whole? Or can the smaller groups, as well as those folks who own just one store, still compete?
Sound off below.
[Image: Scharfsinn/Shutterstock.com]
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