AutoNation makes aggressive move into Colorado with dual dealership takeover

AutoNation, Inc. (NYSE: AN) has expanded its Colorado footprint by acquiring two major Englewood dealerships—Groove Ford and Groove Mazda. The acquisition, finalized on March 31, 2025, aligns with AutoNation’s core strategy of reinforcing its presence in high-performance, high-density markets.

The dealerships have been rebranded as AutoNation Ford Arapahoe and AutoNation Mazda Arapahoe, reflecting their integration into AutoNation’s national portfolio. This expansion marks the company’s first Mazda location and second Ford dealership in Colorado.

What are the financial highlights of this dealership acquisition?

The two dealerships sold close to 5,000 new and used vehicles in 2024 and generated an estimated $219 million in annual revenue. These figures underscore the acquisition’s value and are expected to bolster AutoNation’s top-line growth.

AutoNation now operates a total of 22 dealerships in Colorado, broken down into 13 Domestic, 6 Import, and 3 AutoNation USA stores, with all locations focused around the greater Denver area.

How does this fit into AutoNation’s long-term strategy?

According to AutoNation CEO Mike Manley, this acquisition enhances the company’s ability to scale rapidly in established markets. He said the move is consistent with AutoNation’s strategy to prioritise acquisitions that deliver strong financial results and operational synergies while deepening market density in core regions.

Rather than expanding into uncharted territories, AutoNation is consolidating its operations in familiar markets where brand awareness, customer loyalty, and infrastructure are already well developed.

How will AutoNation integrate employees and operations?

Approximately 200 employees from the acquired Groove dealerships will join AutoNation’s workforce. The company has said it will fully integrate these employees into its national structure, offering them access to the same training programs, resources, and benefits enjoyed by its broader associate network.

AutoNation has also made clear that customers can expect consistent service and access to expanded offerings, including enhanced digital tools, national service guarantees, and broad vehicle inventories.

What does this mean for Colorado car buyers?

For car buyers in the Denver area, this acquisition will likely result in improved access to vehicle inventory, financing options, and maintenance services, all backed by AutoNation’s national brand. The rebranding of the stores to AutoNation Ford Arapahoe and AutoNation Mazda Arapahoe is expected to align customer expectations with AutoNation’s service model, which blends in-person dealership services with online tools.

How does AutoNation balance business goals with community impact?

AutoNation has consistently invested in community-focused programs. Through its DRV PNK campaign, the company has raised more than $40 million for cancer-related causes. This dual focus on commercial growth and community support is central to AutoNation’s identity and plays a role in its ongoing national expansion.

What are the risks and investor considerations?

While AutoNation is optimistic about the acquisition’s potential, it has noted several forward-looking risks. These include market volatility, integration complexities, and changing consumer behaviours. The company continues to monitor interest rate fluctuations, vehicle supply issues, and inflation—all of which can impact dealership performance.

Nonetheless, AutoNation remains confident that its market-centric acquisition model positions it to deliver consistent shareholder returns over time.

What does this acquisition signal for AutoNation’s future?

The acquisition of Groove Ford and Groove Mazda is a signal of AutoNation’s intention to grow through precision, not scale for scale’s sake. With a clear focus on building strength in high-performance markets, the company is positioning itself to navigate the evolving automotive retail landscape with agility and operational excellence.