2023 rebounding for local auto dealerships
Automotive World predicts global vehicle sales will return to pre-pandemic levels with 9% growth
Automotive sales have taken a hit amid supply chain backups and a shortage of microchips, but industry analysts expect a return to pre-pandemic levels in 2023.
That confidence is reflected in the recent acquisition of two prominent Southland dealerships.
Costa Mesa-based Nouri/ Shaver Automotive Group completed its acquisition of Worthington Ford in Long Beach in February. That was followed the same month by Fletcher Jones Automotive Group's purchase of Carson Toyota.
The Long Beach dealership now operates as BP Ford and the Carson dealership has been rebranded as Fletcher Jones Toyota of Carson. Employee staffing at both locations has remained intact.
DCG Acquisitions, which handled the Fletcher Jones transaction, said that deal speaks to a growing confidence in the industry.
“It's a strong indicator of the competitive opportunities and high dealership valuations we anticipate seeing throughout 2023,” said George Pero, DCG's national vice president of sales.
The deal continues DCG's 2023 merger and acquisition momentum, which began the year with 24 acquisitions already in motion, the company said.
Buying Worthington Ford boosted Nouri/Shaver's portfolio to 17 Southern California dealerships, and Fletcher Jones' latest buy expanded its operations to include 16 new-car dealerships, with locations spread across California, Nevada, Illinois and Hawaii.
Automotive World, an industry publication and research/ consulting company, predicts global auto sales will return to pre-pandemic levels with growth of 9% this year.