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|UnitedAuto Expands Operations in Indianapolis, Indiana|
Awarded Dodge Open Point in Zionsville, Purchases Dellen Oldsmobile and Dellen Lincoln-Mercury on East 96th Street
Detroit, MI, June 8, 2000 - UnitedAuto Group, Inc. (NYSE: UAG), a leading publicly- traded automobile retailer, announced today that it has been awarded a Dodge open point by DaimlerChrysler in Zionsville, Indiana, a suburb of Indianapolis. In addition, it has acquired Dellen Oldsmobile, and Dellen Lincoln-Mercury in Indianapolis, Indiana. Both the addition of Dodge in Zionsville and the Dellen acquisition will enhance UnitedAuto's existing presence in the metropolitan Indianapolis market.
The Dodge open point in Zionsville, which was awarded by DaimlerChrysler, will be operated as a joint venture between UnitedAuto Group and Bill Estes. Mr. Estes has a long history of providing exceptional automotive sales and service in the Indianapolis market. The two Dellen dealerships were acquired from Russel Dellen and consist of Oldsmobile and Lincoln-Mercury franchises. The Dellen dealerships will become part of UnitedAuto Group's Midwest Region; Mr. Jeff Boyd has been named General Manager of the dealerships. Both the Oldsmobile and Lincoln-Mercury dealerships are located adjacent to Dan Young Chevrolet, an existing UnitedAuto business. The addition of these two businesses will add to UnitedAuto's scale in the 96th Street area.
Roger S. Penske, UnitedAuto Chairman, commented on the Indianapolis area activity, "UnitedAuto has significantly enhanced its presence in the Indianapolis market. The opportunity to partner with Bill Estes on a new Dodge open point in Zionsville gives UnitedAuto an excellent business partner. In addition, the acquisition of Dellen Oldsmobile and Dellen Lincoln-Mercury provide the company with two extremely well run and customer-focused businesses that represent two strong domestic brands. Our increased presence in Indianapolis will provide additional opportunities to leverage our already large scale in this important market."
The new Dodge open point in Zionsville, and the acquisition of the two Dellen dealerships are expected to add approximately $74 million in revenues on an annual basis.
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 110 franchises in 16 states, Puerto Rico and Brazil. UnitedAuto dealerships sell new and used vehicles, and market a complete line of after-market automotive products and services.
This press release contains forward-looking information, and actual results may materially vary from those expressed or implied herein. Factors - including economic conditions, manufacturer approvals, and acquisitions risks that could affect these results - are described in reports and documents filed by the Company with the Securities and Exchange Commission.