EDMONTON, ALTA. –AutoCanada said it has signed a letter of intent with Kia Canada to build a new store in north Winnipeg.
The new facility, designed to Kia image standards, will see construction commence in either Q4 of 2015 or early 2016.
“We would like to thank Kia Canada for their continued confidence through the awarding to AutoCanada of the north Winnipeg open point, the second such open point awarded to AutoCanada by Kia,” AutoCanada executive chair Pat Priestner said in a release.
“The addition of the Kia brand to our existing local platform will allow us to broaden our product offerings to our Winnipeg customer base.”
Priestner further noted that while open point dealerships typically result in short term operating losses, they make excellent investments, as they do not incur the payment of goodwill.
AutoCanada is one of Canada's largest multi-location automobile dealership groups. It currently operates 46 franchised dealerships in eight provinces and has over 2,700 employees.
After setting a torrid pace in 2014, the public group has been relatively quiet thus far in 2015 related to acquisitions.
Last year saw a number of additions to the fold including the November approval of equity interest in Bridges Chevrolet, the purchase of BMW Laval and MINI and several purchases including Lakewood Chevrolet, Toronto Dodge Chrysler, Tower Chrysler and Dodge City.
The largest splash made last year came with the completion of a deal for six rooftops from the Hyatt Automotive Group.
According to its December investor presentation, AutoCanada has acquired, opened or invested in 34 dealerships since the May 2006 initial public offering.
In 2013, AutoCanada stores sold approximately 36,000 vehicles and processed approximately 364,000 service and collision repair orders in 406 service bays..