Hometown Auto Retailers to Add Two New Franchises
13 January 2000
Hometown Auto Retailers to Add Two New Franchises; "Tuck-In" in Vermont and New Franchise in Connecticut Expand Company's Base in Northeastern U.S.
WATERTOWN, Conn.--Jan. 12, 2000--HOMETOWN AUTO RETAILERS, INC. (Nasdaq NM:HCAR) today announced the addition of two new franchises to its network. The Company has purchased the Jeep franchise in Brattleboro, Vermont, which will be tucked into its Brattleboro Chrysler Plymouth Dodge Dealership. This acquisition represents Hometown Auto's third tuck-in over the past four months. In addition, the Company has been awarded a Daewoo franchise that will be added to Hometown Auto's Shaker Lincoln Mercury Dealership in Watertown, Connecticut.Joseph Shaker, President and Chief Operating Officer of Hometown Auto Retailers, commented, "We are very pleased to diversify our product offerings in Brattleboro through our acquisition of the Jeep franchise and in Watertown through the addition of the Daewoo franchise. These popular cars will both expand the array of products Hometown Auto sells and enable us to draw from a broader customer base within our existing markets. The Daewoo models have had tremendous appeal to college students and, as a stimulus to sales to this population segment, we will offer a unique financing arrangement that enables students to pay interest only on their car loans until they graduate. The Jeep models we will be adding to our Brattleboro dealership are also an outstanding product line with a strong sales history, particularly in snow country such as Vermont.
Mr. Shaker continued, "Our acquisition of the Jeep franchise in Brattleboro demonstrates our commitment to pursuing strategic tuck-ins that enable Hometown Auto to make more efficient use of existing service and parts departments, sales forces and administrative personnel while spreading overhead among increased revenues. Both tuck-ins and the addition of new franchises at existing locations enable Hometown Auto to realize economies of scale and avoid significant start-up costs. They represent an important element in our strategy of becoming the dominant dealership group in the northeastern United States."
Hometown Auto Retailers sells new and used cars and light trucks, provides maintenance and repair services, sells replacement parts and provides related financing, insurance and service contracts through 11 franchised dealerships located in New Jersey, New York, Connecticut, Massachusetts and Vermont. The Company's dealerships offer 13 American and Asian automotive brands, including Chevrolet, Chrysler, Daewoo, Dodge, Ford, Isuzu, Jeep, Lincoln, Mazda, Mercury, Oldsmobile, Plymouth and Toyota. The Company is active in two "niche" segments of the automotive market: the sale of Lincoln Town Cars and limousines to livery car and livery fleet operators and the maintenance and repair of cars and trucks at a Ford and Lincoln Mercury factory authorized free-standing service center.
This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expressed or implied. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Therefore, there can be no assurance than any forward-looking statement will prove to be accurate.