The Pohlad family has decided to part ways with Carousel Motor Group, a company it founded 15 years ago. Lithia Motors will scoop up the dealerships and expand its footprint in the highly competitive Minneapolis—St. Paul market. The deal is expected to add over $900 million in annual revenue to Lithia’s growing empire. This acquisition promises to bolster Lithia’s revenue and enhance its brand diversity and market reach.
The acquisition includes nine dealerships. They are mainly in the greater Twin Cities area. The dealerships feature a mix of top luxury and domestic brands. Carousel Hudson Ford stands out as one of the largest locations in Wisconsin and is Lithia’s first Ford store in the state.
“We are excited to expand into the Twin Cities with Carousel Motor Group and its successful award-winning stores,” said Bryan DeBoer, Lithia & Driveway President and CEO, in a press release. “Building out our network in the North Central Region, our least-dense region, allows us to foster long-term customer relationships and provide our omnichannel solutions, offering a full ownership lifecycle to this market. We welcome Carousel’s high-performing team members to the Lithia & Driveway family.”
Carousel Motor Group was founded in 2008 as Twin Cities Automotive. Its journey from a single BMW dealership in Minnetonka to a group of nine dealerships is a testament to its growth and change in the competitive automotive dealership landscape. Over the years, Carousel expanded its portfolio to include dealerships for Audi, Porsche, Ford, Jeep, and Hyundai brands. The company also made headlines in July 2021 by opening Minnesota’s first and only Ferrari dealership.
In a news release, Pohlad Cos. executive chair Tom Pohlad said he’s confident that Lithia is the right partner to take Carousel “to the next level.”
“Over the last 15 years, Carousel Motor Group has built a strong network of dealerships and served thousands of customers in our community, thanks in large part to its team of talented and committed employees,” he said. “Carousel Motor Group’s reputation for excellence and success in our market has poised them for growth.”
The acquisition by Lithia Motors, set to close within the next six to eight weeks, represents a pivotal moment for Carousel Motor Group. Joining Lithia’s extensive network of over 290 dealerships, Carousel is transitioning from a regional player to part of a national giant in the automotive industry. This acquisition brings Lithia & Driveway’s total year-to-date expected annualized revenue acquired to over $5.4 billion.
