Serra Automotive, ranked No. 12 among Top Dealer Groups and No. 6 among Top Private Groups in the United States, plans to complete its acquisition of Bill Marsh Auto Group. When the transaction closes in the coming months, Serra Automotive will receive three new stores representing eight franchises across Michigan.
On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Joe Serra, Chairman of Serra Automotive, and Matt Serra, President of Serra Automotive, to share transaction details and expectations for the 2024 auto market. The pair were recently featured on CBT News' Executive Profile Show, where they detailed what it takes to build a great work culture within the dealership group.
Important points
1. Dealer Group achieved impressive results in 2023, which Sellas attributes to the talent of Dealer Group's team. Still, the past year was still difficult to navigate. High interest rates were a major obstacle to retailers' success, as was the normalization of profit margins.
2. Matt Serra expects margins to fall further in 2024, but welcomes the challenge. Since early 2023, automakers have significantly ramped up production, allowing supply levels to return to normal, and analysts expect this trend to continue for the foreseeable future. Barring a new car shortage, car prices will also fall in the coming months as the availability of popular models increases.
3. Joe Serra deeply respects Bill Marsh Auto Group and cites Bill Marsh Sr. as one of his mentors in the auto business. When the Marsh family decided to exit the business, they contacted Serra Automotive to see if they were interested in an acquisition.
Four. Matt Serra expects his dealer group to benefit from Bill Marsh Auto Group's extensive knowledge and expertise in the automotive retail sector. We also believe that our operating partners will benefit from working together under a unified system, while also teaching each other new strategies to increase sales and profits.
Five. Bill Marsh Auto Group will continue to operate with the same employees, locations and managers as before, but Matt Serra expects both companies to continue to evolve over time. The only change in leadership is replacing the three dealership operators and owners with two of his own from his Serra Automotive team.
6. As Serra Automotive continues its expansion efforts, Joe Serra said the company is only looking to acquire dealers that have the ability to support growth.
“This year, we expect pricing pressure to increase as supply increases… which will make our financial situation even tougher. When it gets tougher, so will our business. Our team is ready and …but so it's a huge opportunity to really grow and make a big impact.” — Matt Serra
