dealergroup

A dealergroup, also referred to as a dealer group, is a company that owns and operates multiple automobile dealerships, often representing several brands. It may include new-car franchises, used-car lots, and service centers across multiple locations. Dealergroups can be family-owned regional businesses or large publicly traded companies.

Structure: A dealergroup usually consists of a holding company and regional operating units. Each dealership operates as a franchise with one or more OEMs and provides sales, service, parts, and sometimes a body shop. Central functions such as procurement, marketing, and training are shared to achieve economies of scale. Dealer management systems handle inventory, customer relations, and reporting.

Operations: Core activities are new and used vehicle sales, maintenance and repair, parts distribution, and financing and insurance products. Many groups coordinate fleet sales, remarketing, and aftermarket offerings. Compliance with franchise agreements and brand standards, as well as coordinated marketing, are common.

OEM relations and regulation: Dealergroups operate under OEM franchise agreements and must meet brand and territory requirements. In many markets, OEMs grant franchises based on performance, service capacity, and local market conditions. Regulation may govern disclosure, pricing, and contract termination.

Economics and trends: Benefits include scale in purchasing, standardized processes, and cross-brand selling. Risks include sensitivity to market cycles, regulatory changes, and dependence on OEM programs. Consolidation and digital retailing are shaping industry dynamics.

Examples: Notable groups in the United States include Lithia Motors, AutoNation, Penske Automotive Group, and Sonic Automotive.