AutoNation Expands Footprint with Audi and Mercedes-Benz Stores in Chicago

Rhea-AI Summary

AutoNation (NYSE: AN) has announced the acquisition of two luxury dealerships in Chicago from Fletcher Jones Automotive Group - Fletcher Jones Audi and Mercedes-Benz of Chicago. The acquisition, effective September 15, 2025, represents approximately $325M in annual revenue and 4,500 retail new and used vehicle annual unit sales.

The deal expands AutoNation's Chicago presence to 10 locations, including two Audi stores, three Mercedes-Benz stores, one BMW store, three Import stores, and one collision center. The acquisition brings 220 associates to AutoNation's workforce and strengthens the company's luxury brand portfolio in a key market.

Positive

• Acquisition adds $325M in annual revenue
• Expands luxury brand portfolio with premium Audi and Mercedes-Benz dealerships
• Increases Chicago presence to 10 locations, creating market scale advantages
• Adds 4,500 annual vehicle unit sales capacity

Negative

• Integration risks with 220 new associates and operations
• Potential impact on short-term cash position from acquisition costs

Insights

Automotive Retail Analyst

AutoNation's strategic acquisition of two Chicago luxury dealerships expands market presence and adds $325M annual revenue.

AutoNation's acquisition of Fletcher Jones Audi and Mercedes-Benz of Chicago represents a significant expansion in the competitive Chicago luxury automotive market. The deal adds approximately $325 million in annual revenue and 4,500 retail vehicle units to AutoNation's operations, substantially increasing its Chicago footprint to 10 locations.

This acquisition follows AutoNation's established pattern of strategic consolidation in the fragmented automotive retail sector. By increasing its Chicago luxury presence to include two Audi stores and three Mercedes-Benz locations, AutoNation creates operational efficiencies through geographic density. The company can now leverage shared inventory management, marketing resources, and service operations across multiple locations serving the same customer demographic.

The addition of 220 associates brings valuable expertise in the luxury segment, where customer experience is paramount. For context, luxury dealerships typically generate higher profit margins per vehicle and greater service department revenue than mass-market retailers. The transaction will likely enhance AutoNation's earnings through both increased volume and improved margins.

From a competitive standpoint, this move strengthens AutoNation's position against other major automotive retail groups expanding through acquisition. The premium brand focus aligns with industry trends toward higher-margin luxury vehicles, providing some insulation against potential economic headwinds affecting mass-market vehicle sales.

CHICAGO, Sept. 16, 2025 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN) today announced that it has acquired two luxury stores in Chicago, Ill., effective September 15, 2025. The stores are Fletcher Jones Audi and Mercedes-Benz of Chicago from Fletcher Jones Automotive Group, representing approximately $325M in annual revenue and 4,500 retail new and used vehicle annual unit sales. This acquisition will bring AutoNation's location count in the greater Chicago area to 10, including two Audi stores, three Mercedes-Benz stores, one BMW store, three Import stores, and one collision center. 

"We're thrilled to welcome our two newest locations, Audi of Chicago and Mercedes-Benz of Chicago, their 220 associates, and valued customers to AutoNation," said Mike Manley, Chief Executive Officer. "These acquisitions will enhance our luxury brand portfolio, deepen our presence in a key market, and create scale that drives both customer experience and shareholder value."

About AutoNation, Inc.
AutoNation, one of the largest automotive retailers in the United States, offers innovative products and exceptional services as part of a portfolio of comprehensive solutions for our customers and their automotive needs. With a nationwide network of dealerships strengthened by a recognized brand, we offer a wide variety of new and used vehicles, customer financing, parts, and expert maintenance and repair services. Through DRV PNK, we have raised over $40 million for cancer-related causes, demonstrating our commitment to making a positive difference in the lives of our Associates, Customers, and the communities we serve.

Please visit www.autonation.com, investors.autonation.com, and www.x.com/autonation, where AutoNation discloses additional information about the Company, its business, and its results of operations. 

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as "anticipates," "expects," "estimates," "intends," "goals," "targets," "projects," "plans," "believes," "continues," "may," "will," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our expectations for the future performance of acquired stores and other statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, and achievements expressed or implied by these statements.  These risks, uncertainties, and other factors include, among others, our ability to integrate successfully new acquisitions; economic conditions, including changes in tariffs, consumer demand, fuel prices, and/or unemployment, interest, and/or inflation rates; and other factors described in our news releases and filings made under federal securities laws, including, among others, our most recent Annual Report on Form 10-K and subsequent filings. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances. 

 

 

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SOURCE AutoNation, Inc.

FAQ

What dealerships did AutoNation (AN) acquire in Chicago in September 2025?

AutoNation acquired Fletcher Jones Audi and Mercedes-Benz of Chicago from Fletcher Jones Automotive Group, effective September 15, 2025.

How much annual revenue will the new Chicago dealerships add to AutoNation?

The acquired dealerships represent approximately $325M in annual revenue and 4,500 retail new and used vehicle annual unit sales.

How many locations does AutoNation now have in Chicago after the acquisition?

After the acquisition, AutoNation has 10 locations in the Chicago area, including two Audi stores, three Mercedes-Benz stores, one BMW store, three Import stores, and one collision center.

How many employees are joining AutoNation from the acquired Chicago dealerships?

The acquisition brings 220 associates from the Fletcher Jones dealerships to AutoNation's workforce.

What is the strategic importance of AutoNation's Chicago dealership acquisition?

The acquisition enhances AutoNation's luxury brand portfolio, deepens its presence in a key market, and creates scale that drives both customer experience and shareholder value.