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Swickard Auto strikes gold out west

Swickard Auto strikes gold out west

An expanding Swickard Auto Group entered Southern California via a majority stake purchase of John Elway’s Crown Toyota in Ontario, one of the Japanese automaker’s highest-volume U.S. dealerships.

And the dealership’s price tag also fetched near-record blue sky value, according to the broker who facilitated the sale.Blue sky is the intangible value of a dealership, including goodwill.

Swickard Auto on Aug. 22 bought a 90 percent stake in the dealership just east of Los Angeles from Elway, Mitch Pierce, Dan Grubb and Paxton Gagnet, said Swickard’s Greg Gates, vice president of business transformation. The four Elway partners collectively kept a 10 percent stake in the dealership, Gates said.

Gagnet will stay on as the store’s general manager and the dealership’s name will not change, Gates said.

“Crown Toyota was an opportunity to really get a foothold in Southern California,” Gates told Automotive News. “What we’ve learned over time is it makes sense to have some scale when we go into a new market. The great thing about a place like Crown Toyota is just the size of the operation. I mean, with one store you almost immediately achieve scale because of the size of the operations.” read more