McGovern Automotive Group buys Stellantis dealership, its fifth acquisition of 2022

The flurry of acquisitions this yr follows McGovern Automotive last October acquiring a unusual Ferrari-Maserati dealership, acquiring Ferrari-Maserati Extensive Island in Plainview, N.Y., from Experience Vehicle Team.

With all its advancement, McGovern claimed his group is on observe to make $1.8 billion in once-a-year profits for 2022 and to promote additional than 27,000 new and applied autos blended this calendar year.
McGovern, 52, said that following graduating faculty, he worked for an accounting organization that specialised in car dealership work. He reported he finally went to operate for a dealership shopper that was bought to Group 1 Automotive Inc. in 2000. With Group 1, McGovern claimed he labored as the Northeast region CFO. He remaining Team 1 and in 2007 co-started Prime Motor with David Rosenberg and David Abrams of Abrams Cash.

McGovern explained he left Prime Motor in early 2016, ahead of Key in 2017 combined with GPB Money Holdings’ Capstone Automotive Group to create Key Automotive Team.

On his have, McGovern said he acquired his initially shop in September 2016, a Chrysler-Dodge-Jeep-Ram retail outlet in Newton, Mass., with some fiscal enable from his sister.

“It was a pleasure to shuffle across the street and get rolling on my possess with a good, terrific management team,” McGovern reported. “So we rapidly purchased four dealerships in quarter 4 of 2016: one more Hyundai shop, a Honda retail outlet, and I was in a position to purchase our Toyota retail outlet in December of 2016. And that mix of shops has fueled my progress in conditions of extraordinary profitability right from the get-go.”

In mid-2018, McGovern reported he extra his initial luxury dealerships, obtaining Audi and BMW in Shrewsbury, Mass., and in June 2020 he extra his 1st Porsche dealership, also on Long Island.

“It was March of 2020, and I set it underneath agreement,” he recalled. “I was sending out the $500,000 deposit and my CFO claimed, ‘What? Are you ridiculous? You can find a pandemic going on.’ And I was like, I’m not nuts. And I feel on the other aspect of this, it truly is going to be genuinely, really very good.”

The Lundgren shop aids McGovern have some efficiencies in western Massachusetts, he reported, and follows the strategic acquisition this 12 months of Dillon Chevrolet to support with the group’s new municipal division. McGovern said he aims to provide municipal motor vehicles these as police and maintenance vehicles “to metropolitan areas and towns all in excess of Massachusetts, Rhode Island, New Hampshire and as effectively as quite possibly the condition police in Massachusetts.”

With the Bill Dube Hyundai acquisition, Scott Dube joined McGovern Automotive as vice president of federal government and industry relations. Dube, who also will continue to provide on the board of administrators for the National Vehicle Sellers Affiliation, reported he retained a minority interest in the dealership, but he did not disclose it.

Dube informed Automotive News that he failed to want to provide his store, but identified that “timing’s everything.”

“Fascination fees are fast rising, gasoline charges are speedily raising, inflation is quickly increasing,” he explained, adding that those people improvements put stress on the family organization.

He said it also was a superior time for his spouse and children to lessen risk exposure specified that “there proceeds to be uncertainty all around stock.”

He mentioned that when lower stock for new vehicles has aided dealers’ profitability, it is unclear how prolonged that will very last.

But McGovern sees at minimum a couple of very good several years ahead for automobile suppliers.

“We’re going to remain very intense,” he mentioned of promotions that “make perception. I imagine you can find a stable one to two yrs at the very least of genuinely excellent automotive situations. So I think it will make perception to be bullish nevertheless.”

Woody Woodward and Brian Brown of DCG Acquisitions, a Dave Cantin Group business, dealt with the McGovern-Lundgren transaction.