– Leader Auto Resources (LAR), Resilience Capital Partners enter partnership to enhance services, significantly grow U.S. business
– U.S business will be rebranded as DealerShop ™ , providing complete sourcing of products, services and equipment to auto dealership franchises
– Streamlined business model conserves time, offers dealerships extensive savings
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="MONTREAL and DETROIT , March 30, 2020 /CNW/ – Leader Auto Resources (LAR), based in Montreal , and Resilience Capital Partners, a Cleveland -based private equity firm, today announced they will partner to significantly expand LAR’s auto dealership sourcing and service business in the U.S. Through the investment by Resilience Capital, LAR’s existing U.S. business will be rebranded as DealerShopTM, and will be led by automotive industry veterans Mary Petrovich , chairman, and Bill Gryzenia , president and CEO.” data-reactid=”15″>MONTREAL and DETROIT , March 30, 2020 /CNW/ — Leader Auto Resources (LAR), based in Montreal , and Resilience Capital Partners, a Cleveland -based private equity firm, today announced they will partner to significantly expand LAR’s auto dealership sourcing and service business in the U.S. Through the investment by Resilience Capital, LAR’s existing U.S. business will be rebranded as DealerShopTM, and will be led by automotive industry veterans Mary Petrovich , chairman, and Bill Gryzenia , president and CEO.
“We founded LAR with the aim to create a centralized supply chain system that provides dealers with increased confidence and control in their purchasing activities,” said Robert Issenman , president and CEO of LAR. “This agreement with Resilience Capital will catapult us in our mission, and provide the capital and expertise to replicate our business model in the United States .”
LAR was founded 40 years ago and is the largest sourcing partner for franchised new vehicle dealerships in North America , serving more than 2,000 dealer franchises and 270 collision centers primarily across Canada . Together, LAR and DealerShop plan to grow by leveraging greater purchasing power, enhancing the customer experience through technology investments and process improvements, and elevating its collision center, parts and services offerings.
Recognizing the cyclical nature of the automotive industry, Resilience Capital sees the potential for dealerships and collisions centers to operate profitably throughout these cycles. Bassem Mansour , co-CEO of Resilience Capital, added, “With our deep understanding and experience in the automotive services and aftermarket segments, this partnership with LAR fits the Resilience Capital portfolio perfectly as a long-term investment aimed at growth and profitability of the company through new and better services to dealer franchises and collision shops.”
DealerShop, which will handle and expand all of the company’s U.S. operations, will be headquartered in the Detroit area and serve as a subscription-based distribution hub for supplying dealerships with everything needed to operate their business — from administrative supplies and services, to warehouse and direct-purchase products from the world’s leading suppliers, to capital equipment. Experts within the company will routinely and objectively analyze an extensive variety of supplies, parts, equipment and more to deliver dealers the best pricing and streamline steps for their respective purchasing departments.
“DealerShop will operate as a centralized supply chain system for essentially everything a dealership needs to effectively run its business,” said Petrovich. “With more than 17,000 dealerships nation-wide, we believe there is an incredible opportunity to help dealers and collision centers minimize administrative tasks, optimize time devoted to other core functions and realize true cost savings in almost every area of their franchise.”
DealerShop intends to utilize LAR’s proven business model, create stronger distribution channels and utilize its expansive network to successfully negotiate rates locally. In addition to forging its own path in the U.S. market, DealerShop will continue to support LAR’s continued growth in Canada .
“We saw an opportunity to take a longstanding success story in the Canadian market, expand that strategy and employ it on a larger scale in the U.S., where there is a growing need for reliable and efficient car and truck dealership suppliers,” said Gryzenia. “We will put an intense focus on becoming a strong partner to help dealers focus on the areas of support and service as a strategy to enhance their overall profitability.”
The vast majority of inventory purchased through DealerShop will be shipped directly from its planned distribution center and headquarters in the Detroit area. In some cases, items will be drop-shipped directly from the manufacturer, but still ordered through DealerShop.
“This is a great day for LAR and the dealerships and collision centers it serves,” said Al MacPhee , chairman of LAR, president of MacPhee Ford of Dartmouth, Nova Scotia , and past chairman of the Canadian Automobile Dealers Association. “This deal will result in a stronger company that is even better equipped to help customers save money, operate more profitably, focus on their core businesses and enable them to serve their customers in better ways.”
Current plans call for DealerShop to put an emphasis on growing the Northeast region and into the Midwest before expanding into other areas of the country.
BellMark Partners LLC acted as exclusive financial advisor to LAR.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="About Leader Auto Resources” data-reactid=”31″>About Leader Auto Resources
Leader Auto Resources is the largest sourcing partner for franchised new vehicle dealerships in North America , serving over 2,000 dealerships and 270 collision centers across Canada and the Northeast United States . LAR provides dealers with time-tested solutions in virtually every area for dealerships and collision centers. The company offers a broad range of warehouse products and services, including high-volume and private-label products; direct products and services, which provides negotiated rates with the industry’s largest base of certified suppliers; equipment for the buildout or retrofit of new dealerships and collision centers; and training. The company was founded in 1980 with headquarters in Montreal, Canada .
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="DealerShop was formed in March 2020 to replicate LAR's business model and serve the U.S. car and truck dealership market. For more information visit www.dealershopusa.com or www.larnet.com.” data-reactid=”33″>DealerShop was formed in March 2020 to replicate LAR’s business model and serve the U.S. car and truck dealership market. For more information visit www.dealershopusa.com or www.larnet.com.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="About Resilience Capital Partners” data-reactid=”34″>About Resilience Capital Partners
Headquartered in Cleveland, Ohio , Resilience invests in niche-oriented manufacturing, value added distribution and business service companies with sustainable market positions. Resilience provides a flexible transaction approach to accommodate the needs of businesses and sellers.
Since its founding in 2001, Resilience has invested in 83 companies under 41 platforms. Resilience manages in excess of $550 million for its global investor base which includes pension funds, insurance companies, foundations and endowments, fund of funds and family offices.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For more information, please visit www.resiliencecapital.com.” data-reactid=”37″>For more information, please visit www.resiliencecapital.com.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
