Sonic opens EchoPark delivery center in Austin
Sonic Automotive said Tuesday it has opened an EchoPark Automotive delivery center in Austin, which marks the seventh Texas location for Sonic’s standalone used-car program.
The retailer plans on opening approximately 25 EchoPark locations a year (including 20 delivery centers and five medium or large retail hubs) from 2021 to 2025.
The company anticipates covering 25% of the population by the end of this year.
“With our new Austin Delivery Center concept, EchoPark introduces the next level of car buying, allowing guests to replace the traditional dealership experience with an exciting, enjoyable and seamless transaction, while still locking in savings of up to $3,000 versus the competition,” Sonic and EchoPark chief executive officer David Smith said in a news release.
“Our customized guest delivery experience in Austin features three technology-enabled indoor delivery bays that will inspire our guests to celebrate their new purchase in a unique new way,” Smith said.
Sonic and EchoPark president Jeff Dyke added, “Over the past several years, car buyers in my home state have already discovered the value of the EchoPark brand, traveling to one of our six pre-existing physical locations to save thousands of dollars purchasing their next vehicle. We are excited to bring our flexible, seamless car buying experience directly to the state capital as we continue to grow our market share and expand our nationwide reach.”
Sonic is also expanding EchoPark within the company’s home state.
One of the EchoPark locations planned for 2022 is in the Raleigh, N.C.-area. Dyke told Auto Remarketing late last month that a hub in nearby Cary is expected to open at a former Crossroads Ford store in the first quarter.
Sonic’s current EchoPark locations in North Carolina include a hub in Charlotte and a delivery center in Greensboro.
In related news reported previously, Sonic said late last month that its board of directors has begun a review of “potential strategic alternatives” for EchoPark, given the success in the program’s strategy and “our confidence in our runway for continued expansion.”
In a news release on Sonic’s latest quarterly earnings report, the retailer said it is, “considering a full range of potential alternatives with respect to its EchoPark business.”
Sonic has not set a timeline for the review to be completed and noted that it may not result in a transaction.
“The company does not intend to disclose further developments with respect to its review process unless and until its board approves a specific action or otherwise concludes the review,” Sonic said.
Sonic is currently building a digital retailing platform for EchoPark, which is slated to be finished in the fourth quarter. It also is bringing in a chief marketing officer specifically for EchoPark.