AutoCanada, the only publicly traded dealer group based in Canada, first forayed into the U.S. in 2018, when it bought the Grossinger Auto Group in Illinois.

This acquisition added eight dealerships to the group’s linkup in Metro Chicago, plus another six luxury brand dealerships in an auto mall in nearby Bloomington/Normal, Ill.

Now, with a new management team at the helm, the dealer group crossed the border again this year.

AutoCanada added its first-ever Stellantis dealership in the U.S. with the purchase of Crystal Lake Chrysler Jeep Dodge Ram — also in the Chicago area — this summer.

Auto Remarketing Canada spoke with Paul Antony, executive chair of AutoCanada, to discuss the dealer group’s strategy in the U.S. market.

Of the 2018 purchase, Antony said it may not have been one his current management team would have looked at to purchase, but the acquisition is still reaping benefits.

This current management team inherited this U.S. acquisition that was orchestrated by the previous team.

“It required a full transformation of that platform. So, very heavy lifting and a lot of work,” Antony said.

Antony said the success is in part to putting the “right talent” in place at the dealership, as well as a terrific operator and team.

Although perhaps not obvious upon the management reorganization, it turned out to be a “great acquisition,” Antony said. 

He and the current management team led AutoCanada’s latest move into the U.S.  

“With Crystal Lake (Crystal Lake Chrysler Jeep Dodge Ram), given the price we paid for it, plus the opportunities that we saw, plus the brand that we liked, it felt like it was the right acquisition for us,” Antony said.

As for why the U.S. is an attractive market for the publicly traded dealer group, Antony cites franchise dealership policy.

“Franchise laws in the states are more protective of dealers,” he said. “So, the whole dealership model in the U.S. is likely less at risk.”

Antony said valuations also seem to be less expensive in the U.S. versus Canada.

“So, financially, the opportunities are more attractive in the states,” Antony said.

There are also more consolidation opportunities, as well, “just by the sheer volume of dealerships in the U.S.,” Antony said

The company is primarily looking at opportunities in the Illinois, Indiana and Missouri markets for further expansion into the U.S.

When studying potential acquisitions, Antony said the dealer group focuses on price, opportunities in the market and whether AutoCanada could run the store more profitably and efficiently than the previous ownership.

As for future moves in the U.S, Antony said, “It’s all still fairly fresh,” but when the math and opportunities line up, the company will deploy capital.

And AutoCanada will continue to evaluate all opportunities in the U.S. — and Canada — as they come to the company.