Georgia based Asbury Automotive Group has decided to branch out. The company has purchased a Land Rover franchise that it plans to merge into its Jaguar dealership. The acquisition is in line with the desires of Tata Motors, which combined the Jaguar and Land Rover brands after purchasing them in 2008 from Ford.
As part of the expansion, Asbury is renovating its Jaguar dealership in order to increase its capacity. According to a company spokesperson, the renovations will take approximately 18 months to complete. The existing Jaguar dealership was acquired as part of a 2010 purchase of the Greenville Automotive Group. The merging of the existing dealership with the Land Rover franchise will complete Asbury’s transformation into Tata Motors’ vision of unifying the brands throughout the country.
Asbury does not just sell Jaguars, however. In fact, the company offers some 35 different makes of vehicles to potential customers. They also service these vehicles in 120 franchises and 90 retail locations. Acquisitions such as this most recent one have made Asbury one of the largest automotive groups in the United States.
Purchasing an existing franchise can have many advantages for a Georgia business. The company being purchased may already have at least some traction in the product or service market and will often have an established base of operations. Once the franchise is acquired, the purchasing company is often able to step right into the business with a minimum level of difficulty and frustration. It is important, however, to be sure all of the regulatory and legal requirements are met from the outset in order to avoid complications that could adversely affect the future success of the new business.
Source: greenvilleonline.com, Land Rover Greenville franchise bought by Ga. auto retailer, David Dykes, Jan. 31, 2014