Hometown Auto Retailers Adds Pre-Owned Luxury Car Unit to Wellesley, Mass. Lincoln Mercury Dealership
20 November 2000
Hometown Auto Retailers Adds Pre-Owned Luxury Car Unit to Wellesley, Mass. Lincoln Mercury Dealership
WATERTOWN, Conn.--Nov. 20, 2000--Hometown Auto Retailers (Nasdaq NM: HCAR) has acquired the assets of Massachusetts-based International Auto, which will be incorporated into Hometown's Lincoln-Mercury dealership in Wellesley, Mass.International Auto, operated by Chadsam Inc., specializes in pre-owned luxury car sales, including Audi, BMW, Ferrari, Jaguar, Lexus, Mercedes, and Porsche.
Under the terms of the agreement, Hometown will realize all the revenues of the former dealership, which generated $15 million in 1999, beginning Nov. 15, 2000. In addition, Hometown signed three-year employment agreements with Joe and Cindy Stumpo, former owners of International Auto, who will now manage the pre-owned car unit out of Wellesley Lincoln Mercury.
International Auto's inventory will be relocated from its former lot to Hometown's Wellesley Lincoln Mercury dealership on Route 9.
"The Stumpos bring more than 16 years of pre-owned car sales experience to the Hometown Auto family," said Corey Shaker, president and chief executive officer of Hometown.
"Their most recent dealership generated more than $15 million in annual car sales with high profit margins. Bringing their business into our Wellesley Lincoln Mercury dealership not only simplifies the Stumpos' former business, but also provides Hometown with an attractive, profitable business unit.
"We feel this unit will be a significant contributor to the overall profitability of Wellesley Lincoln Mercury."
The integration of the pre-owned luxury car unit into Wellesley Lincoln Mercury also allows Hometown to reach out to the Stumpos' network of affluent customers in the Boston area and in major cities across the Northeast.
"The addition of the high-line imports provides some sizzle to our Lincoln Mercury dealership, and is one example of our efforts to lessen our dependence upon the Lincoln Mercury line," Shaker said.
"Add the hot new vehicles coming from Lincoln Mercury, including the 2002 Mountaineer, and we are looking at an exciting dealership with a varied and sound vehicle offering in a high-traffic location with a solid customer base.
About Hometown Auto Retailers
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 Connecticut, Massachusetts, New Jersey, New York 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 that any forward-looking statement will prove to be accurate.