How Asbury Automotive Group Revolutionized Car Buying: The Customer-First Approach Changing American

Did you know that only 1% of people love their car-buying experience? This info comes from a McKinsey & Company report. Asbury Automotive Group wants to make this better. It started in 2002 in Stamford, Connecticut. This company stands out in the car industry because it puts customers first. It has 7,900 employees. In its first year, it made $4.48 billion. This shows that people like what Asbury does.

Asbury Automotive Group mixes the know-how of experienced car dealers with the skills of top retail bosses. Their goal is to totally change how we buy and service cars. They focus on making customers happy. This means they offer good deals and all the services you need. They really mean it when they say, "Customers for Life." This idea has won over thousands of Americans.

Key Takeaways

• Asbury Automotive Group was founded in 2002 and has since grown to employ 7,900 people.

• The company's initial public offering (IPO) raised $127 million, showcasing its market potential.

• Asbury aims to build long-lasting relationships with customers through fair deals and comprehensive services.

• The company leverages insights from veteran car dealers and top retail executives to enhance customer experience.

• Asbury's customer-first philosophy aims to revolutionize the car-buying experience in America.

The Origins of Asbury Automotive Group

The Asbury Automotive Group started in 1995, creating a big change in car sales. It grew fast, changing how dealerships work and getting known all over the country.

Formation with Onex Corporation

Onex Corporation helped start Asbury Automotive Group to make a large network of dealerships. This step was crucial for Asbury's growth in the U.S. car market.

Expansion with Ripplewood Holdings

In 1995, Ripplewood Holdings joined, bringing in money and boosting expansion. This move helped Asbury grow faster, increasing its influence and number of dealerships.

Early Acquisitions and Growth

Asbury's first years saw big purchases that helped it grow quickly. Buying companies like Plaza Motors and David McDavid Auto Group spread Asbury's reach. These actions laid the foundation for Asbury's success and leadership in selling cars.

Key Moments in Asbury's History

The Asbury Automotive Group has hit several key moments in its history. These events have helped shape it into a leading automotive dealership group in the U.S. A standout event was going public in 2002, a major milestone.

Going Public in 2002

In March 2002, Asbury Automotive Group took a big step by going public. It is listed on the New York Stock Exchange with the ticker symbol ABG. This move allowed the company to get more capital, helping it grow and expand.

By going public, Asbury could now buy and grow more dealerships. This step increased Asbury's visibility and financial power. It was the start of Asbury becoming a top player in the automotive industry.

Acquisitions and Market Expansion

Asbury Automotive Group is known for its smart acquisitions and growth. For example, it bought The Herb Chambers Companies. This added 33 dealerships, 52 franchises, and 3 collision centers to its lineup. The deal cost $1.34 billion and boosted Asbury's size significantly.

Another big purchase was Jim Koons Automotive Companies. It was the ninth biggest privately-owned dealership group in the U.S. It brought in 20 dealerships, 29 franchises, and six collision centers. This move not only expanded Asbury's reach but also brought in over $3 billion in revenue in 2022.

Through these acquisitions, Asbury became the eighth largest dealership group in the U.S. It now has 155 dealerships with 31 different car brands. Asbury Automotive Group careers have grown, offering many jobs across the country. These achievements have earned Asbury recognition as one of America’s Fastest Growing Companies in 2024 and one of the World’s Most Trustworthy Companies.

Asbury's Customer-First Philosophy

Asbury Automotive Group centers around a strong customer-first approach. This method aims to build lasting bonds and deliver top-notch experiences from buying a car to ongoing care. It's what fuels Asbury car sales, pushing beyond typical dealer expectations to make “Customers for Life.”

Asbury's commitment shines through in its vast service offerings. These include vehicle protection products and profitable service contracts, with profits over 20%. This not only helps customers but also boosts Asbury's financial success. Their revenue is set to hit $5.7 billion partly thanks to acquiring Larry H. Miller Dealerships. This acquisition adds 54 new, seven used vehicle dealerships, and 11 collision centers.

Asbury's growth strategy also reflects its customer-first mindset. Buying 33 dealerships from The Herb Chambers Companies expands Asbury's reach. It aligns with their target of making $20 billion in annual revenue by 2025. This positions Asbury as a key player in the auto market, as the eighth-largest dealership group in the U.S.

Key Statistics	Details
Number of Dealerships	152
Revenue from Acquisitions	$5.7 billion
EBITDA Margins	20%+
Projected Annual Revenue by 2025	$20 billion

Used cars play a big part in Asbury's plan, meeting a wide array of customer needs. The purchase of Larry H. Miller Dealerships, with its vast annual sales of over 115,000 new and used cars, underlines Asbury's pledge to offer a large selection of quality pre-owned vehicles. Asbury Automotive Group keeps raising the bar for customer happiness in the car industry by prioritizing high service and value levels at all times.

Utilization of Customer Relationship Management (CRM)

Asbury Automotive Group has greatly improved how it serves customers by using CRM tools. These tools help make each customer's experience more personal. This, in turn, builds customer loyalty.

Implementing CRM Tools

Putting CRM tools into practice is key for handling customer interactions well. CrmOne has plans that start at $20 per user a month, which is affordable for any business size. These tools can make a big difference. They may even triple the rate at which leads turn into sales.

Data-Driven Customer Insights

Thanks to CRM, Asbury Automotive Group can deeply understand customer needs by looking at their data. Using analytics lets a business make quick, informed decisions. This sharpens marketing strategies, making them feel more personal to the customer. It’s a fact that if the content isn't tailored to them, 74% of customers get annoyed.

Enhancing Customer Retention

CRM lets Asbury Automotive Group keep in constant contact with its customers. Studies show that keeping customers can be improved by offering services they really want. Also, having a site that works well on phones can boost engagement significantly.

Asking customers for their feedback can make them 20% happier with the business. This shows how important it is to keep in touch with customers.

Innovations in Digital Automobile Sales

The Asbury Automotive Group is changing how we buy cars online. They've made online car shopping smooth and easy. From picking a car to getting a loan, they've improved everything.

About 40% of people say they shop online to find better deals. Asbury Automotive Group knows this. They've made their online tools easy to use so more people buy cars through them.

More folks want easy online ways to get car loans, too. Asbury helps buyers right from their homes with different financing options. This is important since lots of car loans come through dealerships.

Tools that make financing simpler are becoming a big deal. For example, Capital One's Auto Navigator lets people see if they qualify for a loan without hurting their credit score. Asbury uses tools like these to make buying a car online clear and easy.

Selling electric cars (EVs) online is getting more important, too. Sales are booming. Asbury's site has special features for EV fans. Also, with used car prices going way up, good online sales tools are more critical than ever.

The Role of Technology in Customer Experience

Asbury Automotive Group uses tech to make car buying awesome. They've made traditional dealership stuff modern and high-quality online. Clicklane and virtual showrooms are key to their success.

Clicklane: A Seamless Buying Experience

Clicklane is all about easy shopping for cars online. It lets customers look at cars, finance them, and buy them without leaving home. It makes car buying simple and convenient.

Virtual Showrooms and Test Drives

Virtual showrooms bring the car dealership to you. You can see cars in 360-degree views and check out their features online. Even test driving is virtual, making it feel like you’re really there.

This approach keeps up with the digital world and saves time. By focusing on virtual showrooms, Asbury Automotive Group improves customer service with tech. They’re leading the way in the industry.

Asbury Automotive Group's Nationwide Presence

Asbury Automotive Group has a huge reach, with about 158 new vehicle dealerships and 210 franchises. They are spread out over key states like Texas, Florida, and North Carolina. Their well-placed dealerships meet a wide range of needs. They sell new and used cars and offer full service after the sale.

The group recently bought Jim Koons Automotive Companies. This big move added 20 dealerships, 29 franchises, and six collision centers to their network. It also included a top-selling Toyota dealership in the U.S. Jim Koons Automotive made more than $3 billion in 2022 and hired over 2,500 staff in places like Washington D.C., Baltimore, and Philadelphia.

Asbury's growth didn't stop there. The purchase of the Jim Koons group aims to increase their yearly earnings by about $3 billion. This expansion helps them reach more customers and improve service. They spent approximately $1.2 billion on this deal, which included $740 million for goodwill and $420 million for real estate upgrades.

Buying Park Place Dealerships for $1 billion also shows Asbury's push into luxury car sales. This deal added 17 new franchises in Dallas/Fort Worth, Texas. After this deal, 36% of Asbury's sales will come from Texas. This move shows how crucial Texas is to their business plan.

Through smart growth and merging new companies, Asbury Automotive Group is changing how people buy cars in the U.S.

Enhancing Dealership Services and Quality

Asbury Automotive Group, a leading U.S. automotive franchise, focuses on improving dealership services. They offer a wide range of vehicle upkeep and repair options. Their goal is to deliver top-notch service that meets the changing needs of customers and the market.

Comprehensive Service Offerings

Asbury dealerships provide comprehensive car ownership services. They have 37 collision repair centers and 153 new car dealerships. These represent 31 different car brands from the U.S. and abroad.

They offer everything from oil changes and tire rotations to more involved repairs and specialty work like bodywork and detailing. Asbury's broad service range ensures every customer need is handled efficiently and expertly.

Adapting to Consumer Needs

Adapting to customer needs is key for Asbury. They evolve their services as market demands change. The company invests in the latest technology and staff training for superior service quality.

Asbury's growth includes moving its headquarters to Sandy Springs into a 98,000 sq. ft. space, creating 350 new jobs. This move shows their commitment to enhancing service quality and expanding their reach.

Asbury's ability to meet customer preferences is shown by the popularity of Toyota and Stellantis vehicles. Innovations like Clicklane, which sold 27,500 vehicles in 2022, keep Asbury ahead in meeting customer needs.

The Impact on American Car Buyers

Asbury Automotive Group has changed how Americans buy cars with new ideas and tech. But, Asbury Automotive Group news shows issues too, like unfair treatment of minority customers.

The FTC found that many customers at McDavid dealerships were charged for add-ons they didn't want. These charges could be hundreds to thousands more per deal. Black and Latino shoppers faced these unfair charges most.

The FTC filed a complaint against Asbury Automotive, claiming they targeted minority buyers unfairly. Despite this, Asbury said they've received no complaints about their McDavid dealerships from 2019 to the recent months. They checked this using a Freedom of Information Act request.

This issue shows the mixed experiences car buyers have with Asbury. Still, the company is making buying better with new tech and focusing on customers.

Conclusion

Asbury Automotive Group has dramatically changed the car retail market in the U.S. They bought The Herb Chambers Companies for $1.34 billion. This deal included 33 dealerships, 52 franchises, and 3 collision centers. It shows Asbury Auto's aim to grow while keeping competitive prices.

By 2024, they expect to make $2.9 billion in revenue. This showcases their excellent operational skills. It also shows how well they plan and focus on their customers' needs.

What makes Asbury Auto stand out is its commitment to making customers happy. They make sure that protection products are only sold if the buyer agrees. This prevents any unwanted charges, following FTC guidelines. This way of doing business helps Asbury Auto earn their customers' trust during a time of wide-reaching inspections and regulations.

In summary, Asbury Automotive Group is a top player in the car world because of its focus on new ideas, making customers happy, and growing strategically. Their recent purchases and upgrades in technology not just meet, but go beyond what customers hope for. They're setting new benchmarks for the industry. Asbury Auto is making big waves, shaping the future of how we buy and own cars, focused on the customer's needs.

FAQ

What is Asbury Automotive Group's approach to customer service?

Asbury Automotive Group focuses on keeping customers for life. They aim to offer top-notch service and value. They want to make sure customers are happy from when they buy a car to when they get it serviced.

When was Asbury Automotive Group formed, and who supported its formation?

The group started in 1994, helped by Onex Corporation. They wanted to build a network of successful dealerships.

How did Ripplewood Holdings contribute to Asbury Automotive Group's expansion?

Ripplewood Holdings joined Asbury Automotive Group in 1995. They brought significant money and helped it grow.

What notable acquisitions were made by Asbury in its early years?

Early on, Asbury made big purchases. They acquired Plaza Motors and the David McDavid Auto Group.

When did Asbury Automotive Group go public, and under what ticker symbol?

Asbury went public in 2002. It's listed on the New York Stock Exchange as ABG.

How has Asbury Automotive Group used CRM tools to enhance customer experiences?

Asbury uses CRM tools to make customer experiences better. They look at data from customer activities. This helps them personalize marketing, improve services, and communicate better.

What innovations has Asbury Automotive Group introduced in digital automobile sales?

They've started using tools like Clicklane and virtual showrooms. This lets people explore cars online in real-time.

What is Clicklane, and how does it benefit customers?

Clicklane makes buying a car online easy and quick. You can do virtual test drives and complete your purchase online.

How extensive is Asbury Automotive Group's dealership network?

They have around 100 dealerships in places like Texas, Florida, and North Carolina. They meet the needs of a wide range of customers.

How does Asbury Automotive Group ensure high-quality service delivery?

They stay on top of what consumers want and market changes. They offer a full range of maintenance and repair services. This meets customer expectations and keeps up with new car technologies.

What impact has Asbury Automotive Group had on American car buyers?

Asbury has changed the car buying experience in the U.S. They offer good prices, many car choices, and focus on customer happiness. Their forward-thinking and customer-first approach have made a big difference.

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Sean Cassy is a renowned automotive industry expert, marketing strategist, and writer with over 35 years of experience. As the co-founder of Turbo Marketing Solutions, Sean has been at the forefront of crafting effective marketing solutions for automotive dealerships across North America.

With a passion for the written word and an encyclopedic knowledge of the automotive world, Sean has written thousands of engaging blog posts, articles, and marketing pieces for dealerships representing all major brands. His work spans from luxury marques to domestic favorites and independent pre-owned dealers.

Over the course of his career, Sean's marketing strategies and content have helped generate over $2 billion in sales for his clients in the automotive retail space. He brings this wealth of expertise and industry insight to every piece he pens.

Through his new blog "Dealers and Drivers", Sean aims to provide a unique blend of automotive enthusiasm and industry analysis, drawing from his decades working with dealers while catering to the interests of car aficionados. Sean's writing offers readers an insider's perspective on the rapidly evolving automotive retail landscape.

Follow him on this exciting new journey exploring the intersection of automotive passion and the retail experience.

You can follow Sean on LinkedIn: https://www.linkedin.com/in/seancassy/ and on his website: https://www.seancassy.com