Company executives refused to talk any further about the move.
“There will be a lot of speculation,” said Jeff Dyke, president of Sonic. Automotive News last week. “We’ve been thinking about it for a long time, but at this point we can’t comment on what’s happening there. After all, our goal is to maximize shareholder value.”
This review shows that Sonic’s leaders have changed their tone. When asked about the possibility of Echo Park being separated from Sonic in July 2020, executives downplayed such a move.
“We believe there is a synergistic effect between the two companies that makes us valuable,” said CFO Heathbird, referring to Echo Park stores and Sonic franchise dealers. ..
In a memo last week, JP Morgan analyst Rajat Gupta said the review “suggests a possible spin-off, suggesting that the business will be self-sustaining in 2022, reflecting profitability.” Said.
EchoPark is generally one to four years old and sells used cars for less than 50,000 miles, up to $ 3,000 below market price.
According to Sonic executives, this approach attracts customers looking for a range of cars, as well as prospective buyers of slightly older or newer cars.
http://feedproxy.google.com/~r/autonews/BreakingNews/~3/LdVopHFVTco/sonic-ponders-echopark-future Sonic Automotive ponders the future of Echo Park