Sonic Automotive recently announced an all-time record quarterly revenue of $3.4 billion, that’s up 58.7% year-over-year. Plans for further expansion of EchoPark were also teased, so what does this mean for the seventh-largest dealership group in the U.S.? On today’s show, we’re pleased to welcome Jeff Dyke, President of Sonic Automotive.
Dyke begins the conversation by discussing the second quarter and their plans for further expansion. They are making a transition by moving towards looking at the population coverage. Dyke says they are right on target with their expansion for the year. He continues to say, EchoPark is growing like wildfire and it’s fun to watch.
Dyke says, they never intended not to expand from a franchise perspective. They’re looking to grow both sides. Dyke believes they have everything they need to make it happen. They’re looking to close on two to three more franchises before the year is out.
With employee turnover at an all-time low, Dyke says, when it comes to staff, car dealers have to grow their own. They are doing a much better job, growing their management and bettering their team. On the inventory side, there is plenty of inventory but car dealers have to know where to buy and be willing to pay for it, says Dyke.
Everyone has their own model but Dyke says their model is hard to replicate. Very few can give cars away and have the return they’ve gotten from EchoPark. He believes the bigger companies, such as Carvana and AutoNation will try to do something different, but it’s a huge market with plenty to do. As they move forward, Dyke is very confident EchoPark can grow to the two million car mark or higher as they move forward.
Dyke ends the conversation, by giving his projection for the balance of the year. He says Sonic Automotive is going to have a great year. They’re going to have all-time record revenue, an all-time record volume, and an all-time record profit. 2022 is going to be an even better year, Dyke predicts. Between now and the end of the year, it’s going to be a lot of fun.
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