Sonic Automotive Suspends Operations at Eight EchoPark Sites
23 June 2023 - 8:06AM
Dow Jones News
By Sabela Ojea
Sonic Automotive said Thursday it is adjusting operations at its
used car business EchoPark because of market volatility within the
second-hand automotive market.
The automotive retailer said it has indefinitely suspended
operations at eight EchoPark locations and additional related
delivery/buy centers to allocate more vehicles where demand is
higher.
The company's move comes as it sees lower availability of used
vehicles and higher wholesale prices with unpredictable volatility
amid lower production of new vehicles over the past three
years.
"The enhancement of inventory mix at the remaining EchoPark
stores, coupled with expense reductions from this action, are
expected to improve EchoPark's short-term financial performance,"
the company said, noting it expects to see continued volatility in
the wholesale price environment into 2024.
Write to Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
June 22, 2023 17:51 ET (21:51 GMT)
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