GRAND RAPIDS — A West Michigan car dealership group plans to acquire a pair of stores located a mile apart on Plainfield Avenue north of Grand Rapids.
Executives at Fox Motor Group LLC confirmed to MiBiz that the company had signed purchase agreements to acquire K&M Dodge RAM, based at 3844 Plainfield Ave. NE, and Van Andel & Flikkema Chrysler Jeep, located at 4100 Plainfield Ave. NE, both in Plainfield Charter Township.
While acknowledging that “there are many details to work out” in regard to the acquisitions, Sarah Raymond, director of marketing and communications at Fox Motors, said in an email that the company expects to close on the deals in January.
Both deals also still require approvals from automaker Fiat Chrysler Automobiles NV, according to Raymond.
“We look forward to working on these details with both teams over the next few months,” Raymond said in an email.
According to its website, K&M Dodge’s founder is Hank Makarewicz, with Tom Makarewicz, Jim Koning and David Koning serving as partners of the dealership.
John Flikkema is listed as the registered agent at Van Andel & Flikkema, according to state filings.
If the deal with K&M goes as planned, it would be Fox Motors’ second transaction with Hank Makarewicz, who previously sold the former Shawmut Hills Sales Inc. motorcycle dealership on Lake Michigan Drive to the dealership group, which is owned by Dan DeVos.
Fox Motors ranked 80th nationally in 2017 with 12,555 new car sales, according to Automotive News. The growing dealership group generated $812 million in sales last year and operated 27 stores across Michigan, including in the Upper Peninsula, and in the Chicago area.
Previously, Fox Motors in May of this year acquired Ann Arbor Infiniti, complementing a deal for Acura, Hyundai and Nissan dealerships in Ann Arbor in 2017. At the time of the Ann Arbor Infiniti deal, Fox Motors said it sold 42 automotive and powersports brands.
The company’s latest deals come amid an ongoing period of consolidation in the automotive dealership industry.
Kerrigan Advisors, a California-based sell-side advisory firm, tracked 202 deals in 2017, the fourth consecutive year with more than 200 deals, according to the report. The firm projected 2018 to be “a very active year” as more companies reacted to the shifts in the automotive retail market that favor larger dealership groups, as opposed to standalone stores.