MacPherson Autos to Be Sold
Megadealer Republic Industries Inc., moving to further expand its hefty Southern California new-car network, has agreed to buy most of Tustin-based MacPherson Enterprises’ dealerships, sources said Wednesday.
The deal to buy Southern California’s eighth-largest auto chain would solidify Republic’s position as the largest new-car dealer in Orange County by adding MacPherson’s leasing business and its Ford, Chevrolet, Mazda and Infiniti franchises to the 11 dealerships it already owns here.
Joe MacPherson, founder of MacPherson Enterprises, could not be reached for comment. Sources said that he has signed a two-year management contract with Republic and that he will retain ownership of his Toyota dealership in the Tustin Auto Mall, which he helped develop.
Officials at Florida-based Republic, which has targeted large, profitable Southern California dealerships in its plan to become the nation’s dominant auto retailer, also couldn’t be reached for comment.
With the MacPherson purchase, Republic will own 40 dealerships in Southern California, making it the region’s single largest auto retailer. The company also has four AutoNation used-car stores in Southern California--including one in Irvine--and has plans to open several others.
Republic’s goal, automotive group president Michael Maroone said in a recent interview, “is to get to $3 billion a year in sales in Southern California.”
The MacPherson group sold more than $230 million worth of new and used cars in 1997, the most recent figures available, ranking it as the 84th-largest chain in the nation.
MacPherson’s Chevrolet and Ford stores ranked among the 300 largest individual dealerships in the country the same year.
The value of the Republic-MacPherson deal remained under wraps Wednesday, but when Republic acquired the $450-million-a-year Webb Automotive Group in Irvine last year it paid more than $100 million.
“This is not surprising,” said Milton Barnes, owner of Classic Chevrolet in Yorba Linda, of MacPherson’s decision to sell to Republic. “We knew they were after him.”
While many independent dealers have expressed fear and loathing of Republic--which detractors call an auto retailing consolidator--Barnes said that having the industry giant as a new competitor shouldn’t be a problem. Republic recently acquired Corona Chevrolet, Barnes’ closest competitor, “and so far it has been good for me.”
He said he has sold cars to customers who told his salespeople they had not been able to get similar deals at the Republic-owned store.
Republic, which also owns Chevrolet dealerships in Newport Beach, Long Beach, El Monte and Manhattan Beach, typically discourages negotiating at its used-car dealerships but doesn’t bar the practice at the new-car operations it acquires.
