Hometown Auto Retailers – Beautiful Interior design Ideas

In the mid-1990s, the automotive sales and service industry was dominated by large dealerships, but these businesses made up a small fraction of the industry’s sales and profits. This trend was particularly pronounced in the densely populated Northeast, where the company’s initial growth was slow and fragmented. That changed in the fall of 2001 when three New Jersey auto dealers merged to form Hometown Auto Retailers, Inc. The merger involved the acquisition of two smaller companies, Wellesley Mazda and Morristown Lincoln Mercury, and the creation of a new group.

In November 2000, Hometown Motors announced no expansion plans, but bolstered its existing dealerships and incorporated a Boston-area used car dealership with its Wellesley Lincoln Mercury dealership. The company also planned to eliminate about $2 million in overhead expenses in 2001, which would be used to sell underperforming franchises and line a new floor plan credit line. However, this strategy would cost the company a significant amount of money.

Despite this success, Hometown did not make its target sales goal of $500 million, generating only $285 million in sales. Its net profit was just over $800,000. In addition to the sales decline, Hometown’s profits also fell. Its struggling performance has prompted the company to consider closing down franchised car dealerships and consolidating their operations. A new car dealership could mean more profits, but it would be a risky proposition.