AutoCanada continued its drive toward a return to profitability by shedding another Stellantis dealership.

The dealership group said it has sold Okanagan Chrysler Dodge Jeep Ram in Kelowna, British Columbia, to Kot Auto Group for $10 million in cash, a move it called a “strategic divestment” that “supports AutoCanada’s focus on enhancing profitability and lowering leverage.”

AutoCanada said the proceeds from the sale were directed toward paying down its revolving credit facility, which was restructured in October to create more financial flexibility.

“This sale is part of a series of strategic steps we are taking to position AutoCanada for future growth,” executive chairman Paul Antony said. “By reallocating resources, we’re able to sharpen our focus on core operations, reduce debt and strengthen profitability.”

After reporting a second-quarter net loss of $33.1 million, AutoCanada began a strategic review of its non-core and underperforming assets, and collaborating with management consulting firm Bain & Company to implement a series of operational improvements to reduce costs and enhance profitability.

As part of that strategy, AutoCanada previously sold two Stellantis dealerships in Alberta and closed seven unprofitable RightRide locations. The Edmonton-based company now operates 82 franchised dealerships in Canada and the U.S., as well as five RightRide used-car stores and 11 stand-alone collision centers.

AutoCanada said Okanagan CDJR retailed 262 new and 437 used vehicles in the 12 months ending Sept. 30, generating sales of $57.2 million.

Kot Auto Group, which operates 10 dealerships in British Columbia, said the acquisition is “a significant expansion of its automotive presence in the Okanagan Valley.”

“This acquisition marks an exciting chapter for both Kot Auto Group and Okanagan Dodge,” says John Kot, President of Kot Auto Group. “We have always prioritized delivering value to our customers and making a positive impact in the communities we serve. By bringing Okanagan Dodge into the fold, we are better positioned than ever to exceed expectations and continue shaping the future of automotive retail in the Okanagan Valley.”

Holman extends its deal with CDK

CDK recorded another win in its recovery from a ransomware attack over the summer, announcing a multi-year extension of its agreement with Holman, one of North America’s largest integrated automotive service companies.

The deal means Holman’s 59 retail dealerships in nine states will continue to use CDK dealership management system and its Dealership Xperience Modern Retail Suite, a set of software tools designed to connect the consumer-to-dealer buying journey into a single transaction.

Holman has been a CDK customer since 2006. In a news release, CDK said Holman has been “instrumental in providing feedback to reimagine” its accounting capabilities, design and workflows.

“Since opening our first dealership in 1924, our focus has always been on providing our customers with an exceptional experience,” Holman executive vice president of retail automotive Frank Carbone said. “The way consumers purchase vehicles and related services has shifted dramatically in recent years. Extending our partnership with CDK is an important investment that will help ensure our retail employees have the innovative tools and resources they need to continue driving what’s right for our customers as we strive to deliver an industry-leading buying experience.”

Since the cybersecurity incident in June that shut down its dealership software for two weeks and disrupted operations for thousands of dealerships, CDK, which is used by the majority of U.S. franchise dealerships, has renewed its agreements with several major dealer groups, including Greenway Automotive Group, Sonic Automotive and AutoCanada.

“We are excited to extend our longstanding relationship with Holman as we continue to simplify workflows, streamline data and provide flexible experiences for dealers and consumers through the depth and breadth of our software,” CDK president and CEO Brian MacDonald said. “Our relationship with Holman is a testament to the great work our team has done to constantly evolve our solutions to improve operational efficiency, create simpler transactions and reduce wait times during vehicles sales and service.”

Sheehy acquires Bill Kidd’s Toyota, Volvo stores

Sheehy Auto Stores has acquired two Maryland dealerships from Charlie Fenwick, Peter Fenwick, Bill Kidd and his daughter Lisa Kidd, according to Haig Partners, which advised the sellers in the transaction.

Bill Kidd’s Timonium Toyota in Timonium and Bill Kidd’s Volvo Cars in Hunt Valley are now part of Sheehy, now owns 29 dealerships in Maryland, Virginia and Washington D.C. In 2023, the Fairfax, Va.-based company sold some 46,000 new and used vehicles and generated $2.2 billion in revenue.

President Vince Sheehy said Lisa Kidd will continue as the dealerships’ general manager.

“This acquisition fits our strategy of investing in leading brands and strong managers in our core markets of Maryland, D.C. and Virginia,” he said. “Toyota is one of our closest OEM partners and we are pleased to be joining the Volvo network for the first time. Lisa Kidd has built a team dedicated to providing excellent customer service and we are pleased that she will be staying on with us to operate the dealerships.”

The dealerships will be renamed Sheehy Toyota Timonium and Sheehy Volvo Cars Hunt Valley.

Bill Kidd’s Timonium Toyota and Bill Kidd’s Volvo Cars opened in 1973. Haig Partners said the Toyota dealership sells about 1,500 new Toyotas per year and has earned the automaker’s President’s Award 15 times.