Asbury Automotive Group Overview

Introduction

Asbury Automotive Group is a North American company situated on the coast of Atlanta, Georgia, United States. The company’s operations deal with the sale and dealership of automobiles across all 52 states in the United State. The company since its inception in 1995 has metamorphosed into a colossus in the automotive industry. According to research, Asbury Automotive is ranked the 3rd largest automobile dealer in the United States, and in its entirety as a group, it has a total number of 148 dealerships, including 198 franchises that represent 31 American, Asian, and European brands. Asbury Automotive is ranked number 360 on Fortune 500 list as of 2022. With over 14, 200 employees in its workforce, Asbury Automotive strives in capacity to provide its customers with reliable, durable, and high-quality based automobile products and services. In this piece, however, you would be shown a comprehensive and extensive overview of the company’s dealings and their aspects. As such, all relevant information detailing its historical background, its key facts, its affiliated brands and service locations, its financial overview, as well as its pros and cons would be concisely covered to enable you to understand the significant key major elements of the company as quickly as possible.

Key Facts

Year of Existence: Existing since 1995, approximately 27 years

Industrial Rank: Asbury Automotive is Ranked 360 on the Fortune 500 2022 list

Employee Strength: Asbury Automotive has over 14, 000 employees in its workforce

Trading: Asbury Automotive trades on New York Stock Exchange (NYSE) market under the ticker name, ABG

Business Type: A Public Limited Liability Company

Industry: Automobile dealership

History

Asbury Automotive was founded by entrepreneur, Tom Gibson who was a former vice president at Subaru of America in the year 1995. Since its inception, Asbury Automotive has undergone a series of transition processes ranging from merging, to acquiring franchises, to building more new plants. However, for the sake of brevity, and to cover every important aspect of this company as swiftly as possible, the succeeding lines, therefore, enumerates its transition and evolution processes and stages.

In 1997,  Asbury Automotive formed a collision venture with Jim Nalley, an Atlanta-based auto dealer. The record has it that stores were under Nalley’s supervision until his retirement in 2004, while his son late currently owns franchises across 3 major states in the United States the likes of Tennessee, Alabama, and Georgia. The merger marks the company’s first and original move, and thereafter, Asbury Automotive Group purchased 11 dealerships out-rightly in the same year 1997.    

In 1998, Asbury Automotive witnessed one of its major expansions, as the company extends its market tentacles beyond the shore of Atlanta as it bought more than three different dealer companies in different states in the US. Asbury Automotive Group bought David McDavid’s dealership in Texas, Plaza Motors based in St. Louis, and Coggin Automotive and Courtesy Automotive based in Jacksonville and Tampa, Florida respectively

In 1999, Asbury Automotive entered into a joint agreement with an automotive group of companies based in North Carolina, operating under the name, Crown Automotive Group. The effect of the acquisition led Asbury Automotive Group into having complete ownership of the rest of its purchased dealerships.

In the year 2010, Asbury Automotive moves ahead to purchase the Greenville Automotive Group outrightly. And subsequently, after the acquisition, Asbury Automotive Group moves ahead to acquire more dealerships in major states like Mississippi, Arkansas, and Oregon until it ultimately rids off some non-core affiliates and subsidiaries to focus and concentrate more on its major markets.

Asbury Automotive under its chief executive officer, David Hult began and dives into more expansionary moves for ten consecutive years dating from late 2010 to the early years of the 2020s. During this periodic expansion, the company enters the Indianapolis market by acquiring the Bill Estes Automotive Group and Hare Automotive Group respectively, and the merger recorded a drastic expansionary effect on Asbury Automotive Group’s history.

In 2017, Asbury Automotive added a few strategic tweaks by focusing on single-point acquisitions in order to expand and increase its market reach.  As such, in 2018, Asbury Automotive Group bought Terry Lee Honda which was renamed Hare Honda located in Avon, Indiana. Also, continuing at the same pace, in 20019, Asbury Automotive Group purchased Kahlo Chrysler Dodge Jeep Ram located in Noblesville, Indiana.

Additionally, in December 2019, Asbury Automotive Group entered an agreement with a Texas-based auto company dealing with the collection of luxury vehicles in the Fort Worth area, Dallas. The company operates under the name, Park Place Dealership, and Asbury Automotive Group sealed the purchase deal with a total sum of 1 Billion USD. However, on 2021, on March 24, Asbury Automotive Group announced the cancellation of the deal as a result of the COVID-19 global pandemic effect. Nonetheless, in the same year, on the 6th of July, the deal was later revisited and the final agreement was reached on the 24th of August 2021.

In 2020, December, Asbury Automotive launched an online platform for new and used vehicle listing, under the name, Clicklane. Although, in its initial launched era, Clicklane only operates in markets where Asbury Automotive Group operates, however, the company announces its intention to subsequently make it accessible in the markets in which it’s yet to operate or own stores.

On September 29, 2021, Asbury Automotive bought Larry H. Miller Dealership, including its Total Care Auto (TCA) vehicle protection plan venture for the total sum of 3.2 Billion USD.  Larry H. Miller Dealership is an Utah-based auto company; the company rids off and divested 7 Lexus and Toyota dealerships as a result of manufacturer rules and guidelines. In a bid to welcome change and new evolution, Asbury Automotive Group pronounced that it would roll out TCA across all its stores that are part of Larry H. Miller’s history and legacy. However, while moving in the same critical trend, Asbury Automotive Group integrate its Clicklane platform to cover all Larry H. Miller-affiliated dealership stores.

And, finally, in the year 2021, Asbury Automotive bought Stevinson Automotive Group based in Denver, the axis of Colorado.

Financials

The following outlined statements highlight the financial position of Asbury Automotive

Revenue: 9.8 Billion USD

Operating Income: 292.8 Million USD

Net Income: 532.4 Million USD

Total Assets: 8.002.6 Billion USD

Total Equity: 314.5 Million USD

Brands and Divisions

The below brand listings outlines the affiliated entities and divisions under Asbury Automotive with respect to their service locations.

Brands                         Service Locations

Coggin Automotive                       Orlando, Jacksonville, Deland, Port St. Lucie, and St.

Augustine, Florida

Arapahoe Hyundai                      Denver, Colorado

Bill Estes Auto Group               Indianapolis, Indiana (Lebanon, and Brownsburg)

Crown Automotive                     Fayetteville, North Carolina, Greensboro, NC, Richmond, VA,                               Durham, North Carolina

Courtesy Automotive               Tampa Bay, Florida, Palm Harbour, Brandon, Tampa

David McDavid                       Fort Worth Metroplex/Dallas, Austin, TX

Hare Automotive                       Indianapolis, Indiana; Avon, Noblesville

Greenville Automotive                    Greenville, South Carolina

Larry H. Miller Dealerships            Phoenix, Tucson, Arizona; Southern California; Boise, Idaho,                              Albuquerque, New Mexico, Salt Lake City, Utah, Spokane, WA

Mika Shaw Subaru                     Denver, Colorado, Greeley Thornton

Mike Shaw Chrysler Jeep       Denver, Colorado, Greeley

Dodge Ram                                       

Park Place Dealerships           Fort Worth metroplex/Dallas, Texas

Nalley Automotive           Atlanta, Georgia (Cumming, Decatur, Marietta, Roswell, Union City,                                    Smyrna, Alpharetta

Stevinson Automotive      Denver, Colorado, (Lakewood, Littleton, Aurora, Longmont

Plaza Motors              St. Louis, Missouri (Creve Coeur, O’Fallon)

Pros

Digitalized Service Offering: Asbury Automotive Group launched an online platform where new and used cars can be listed for trading under the name, Clikname. This move technically upgrades the company’s digital ranking, as this technology is not quite common with most automotive companies.

Reliable, Durable Product and Service Offering: Asbury Automotive Group offers its clients the best of the best automotive vehicles, and it’s committed to keeping its industrial standards.

Career Growth of Employees: Employees at Asbury Automotive confirm Asbury Automotive Group to be a company that fosters employee growth and career development.

Competitive Payment Offering: Although this subject has mixed review, however, most employees at Asbury Automotive Group reports their remuneration to be fair and close to industrial standard.

Friendly Environment: Employees at Asbury Automotive Group reveal the company to be a great and safe place to work as the workplace is filled with myriads of friendly folks.

Cons

Working Hour is Less Flexible: According to research, most employees at Asbury Automotive Group complains about the rigidity of the company’s working hour.  

No Work/Life Balance: Similarly employees also reveal that individuals working for the company relatively have no work/life balance.

High Rate of Staff Turnover: Finally, research indicates that Asbury Automotive Group has a high rate of staff turnover, and this is one of the major cons of the company as a high rate of staff turnover awards affected staff with retrenchment, hence contributing to an increase in the unemployment rate.

Conclusion

Ultimately, you have been shown a comprehensive review of Asbury Automotive Group in the preceding lines, with a focus on a specific and major aspects of the company. As a result, I hope you are able to grasp all detailed sections of this piece which is to broaden your knowledge horizon and enrich your informative faculty.