Carvana has generated industry buzz in recent weeks with its “Megasites” in Houston and Kansas City, Mo., that are designed for high volumes of vehicle reconditioning.

Tricolor is implementing a similar strategy, as the retailer focused on addressing the needs of underserved Hispanic consumers opened its second major reconditioning facility last week to support its sales in California and Texas.

The newest recon site is in Surprise, Ariz., as Tricolor intends to employ more than 500 people who will work at the 258,000-square-foot facility.

In late 2022, Tricolor unveiled a 200,000-square-foot reconditioning center in Wilmer, Texas.

Together, company leaders said these two facilities support Tricolor’s overall promise of quality to its customers. As part of its value proposition, Tricolor performs a 150-point inspection and provides each purchaser with a free 18-month/18,000-mile limited warranty on the vehicle’s major components.

Tricolor hosted a ribbon cutting ceremony last week to celebrate the opening of the Surprise facility. Tricolor chief customer officer Eduardo Perez was joined by City of Surprise vice mayor Nick Haney, as well as representatives from the Arizona Commerce Authority, Greater Phoenix Economic Council, and other local economic development, government and business leaders.

“We are both proud and excited to join the community in Surprise and partner with the Greater Phoenix Economic Council as we grow to meet the mobility and financial needs of underserved Hispanic consumers everywhere,” Tricolor founder and CEO Daniel Chu said in a news release.

“This facility was designed from the ground-up to set a new standard for operational excellence in the retail automotive industry. It’s been a pleasure and a tremendous advantage to work with a city that is aligned with our vision and expectations, and we look forward to a long and productive relationship,” Chu continued.

Chu pointed out the company is the only issuer in all of subprime auto ABS to be certified by the U.S. Treasury as a Community Development Financial Institution (CDFI). It issued its first securitization in July 2013 and has completed 13 ABS transactions in total.

“We provide superior value to our customers in the form of high-quality vehicles fully backed by a warranty and financed at affordable rates — an integrated value proposition simply unattainable elsewhere,” Chu said. “This new, cutting-edge infrastructure enables us to deliver on our commitment to unrivaled vehicle quality as we expand our presence throughout California and the Western United States.”

And now Tricolor has more capacity to recondition vehicles that fit its retailing strategy.

Tricolor said the Surprise facility will have the capacity to handle up to 500 vehicles per week, offering comprehensive services including thorough inspections, mechanical and cosmetic repairs, detailing, and quality control. The facility will ensure each vehicle meets high standards before being prepared for market.

Sandra Watson is president and CEO of the Arizona Commerce Authority.

“Tricolor’s new facility in Surprise highlights Arizona’s growing attractiveness for automotive industry leaders,” Watson said in the news release. “With this new facility, Tricolor grows our robust automotive supply chain while showcasing the rapid economic growth taking place in the West Valley and across the state.”

Chris Camacho is President and CEO of the Greater Phoenix Economic Council.

“Tricolor continues to prove its commitment to Greater Phoenix with this massive new facility that will employ hundreds,” Camacho said. “The company’s dedication to buying and selling locally keeps money flowing within the regional and state economies, multiplying its impact on Surprise and neighboring communities.”

Jeanine Jerkovic, economic development director for the City of Surprise, added, “The City of Surprise is thrilled to welcome Tricolor. Their investment in our community is only the start of a thriving partnership as well as many new career opportunities for over 500 residents.”

For more information about Tricolor, visit tricolorholdings.com and tricolor.com.