Mergers Acquisitions

How Canadian dealership groups are wresting some power away from automakers

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In March, AutoCanada listed its need to “obtain the consent of the applicable OEM” before buying a dealership as one of its operating risks. The company “may have difficulty in obtaining additional franchises from OEMs once franchise limits have been reached.” (AutoCanada inc.)
August 10, 2022 12:48 PM

The growth of Canadian dealership groups is giving them more sway in the traditionally one-sided relationship with their automakers, prompting car companies to take steps to avoid relinquishing too much control, say buy-sell experts.

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