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|UnitedAuto Announces Strategic Acquisition in Fayetteville, Arkansas; Creates New Hub Location in South Central Region|
DETROIT, MI, October 25, 2001 - UnitedAuto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, announced today that it has acquired Chevrolet, Honda and Acura franchises from Nelms Automotive Group, and has executed leases to operate the former Nelms Automotive complex on Showroom Drive in Fayetteville. In addition to the three acquired franchises, the Company announced plans to relocate the Landers Toyota dealership from Springdale, Arkansas to the Fayetteville complex. The Toyota relocation is subject to customary approvals. The acquired dealerships, which will operate under the well-known Landers name, will become part of UnitedAuto's South Central Region, and are expected to generate revenues of approximately $100 million on an annual basis.
Commenting on the Nelms acquisition, Chairman Roger Penske said, "We have acquired premier automotive brands located in the most modern and efficient retail automotive complex in northeast Arkansas. We expect to realize significant operating efficiencies from our investment in Fayetteville."
UnitedAuto South Central Region President, Steve Landers, commented, "The ability to combine four strong brands on one campus in Fayetteville will facilitate our ability to leverage the strong UAG operating model."
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 126 franchises in 19 states, Puerto Rico and Brazil. UnitedAuto dealerships sell new and used vehicles, and market a complete line of after-market automotive products and services.
Statements in this press release may include forward-looking statements. These forward-looking statements should be evaluated together with additional information about UnitedAuto's business, markets, conditions and other uncertainties which are contained in UnitedAuto's filings with the Securities and Exchange Commission and which are incorporated into this press release by reference.