Company also Adds to Presence in Cleveland Market with the Addition of Honda of Mentor
Detroit, MI, October 18, 2000 - UnitedAuto Group, Inc. (NYSE: UAG), a leading publicly-traded automobile retailer, announced today the addition of four new dealership locations in the Midwest.
In the metropolitan Detroit area, UnitedAuto has acquired Rinke Toyota, which is located in Centerline, MI, as well as Rinke Pontiac-GMC and Rinke Cadillac in Warren, MI.
Mr. Kevin Rinke will oversee the Rinke dealership business. In addition, Rinke has been appointed as an Area Vice President for UnitedAuto Group.
According to Roger S. Penske, UnitedAuto Group Chairman, "The Rinke family has a proud tradition of providing exceptional automotive sales and service in the metropolitan Detroit area. The addition of this premier dealership group is the beginning of a strong UnitedAuto presence in the Detroit market. We are extremely pleased that Kevin Rinke has joined the UnitedAuto team and look forward to his leadership in helping us develop our presence in this market."
Commenting on the acquisition, Kevin Rinke said, "The opportunity to join the UnitedAuto team will provide tangible benefits for our customers, employees and OEM partners, alike. Going forward our team will be able to leverage the significant strengths and resources that UnitedAuto offers."
The Rinke dealerships are expected to add approximately $225 million in revenues on an annual basis.
In Mentor, Ohio, UnitedAuto has acquired Gene Norris Honda; the dealership's name has been changed to Honda of Mentor. Mr. Mike D'Amato of UnitedAuto Group will oversee operations at Honda of Mentor.
Roger S. Penske commented, "The addition of Honda of Mentor to our portfolio complements our recently established presence in the mid-Ohio market. We are pleased with the opportunity to add this popular brand and strengthen our position in the Cleveland metropolitan area."
The acquisition of the dealership in Mentor, Ohio is expected to add approximately $55 million in revenues on an annual basis.
The dealerships will become part of UnitedAuto Group's Midwest Region.
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 124 franchises in 17 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.