THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, July 18, 1995 TAG: 9507180302
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: CHESAPEAKE LENGTH: Short : 42 lines
Colonial Auto Group, a chain of local automobile dealerships owned by industry giant J.R. ``Rick'' Hendrick III, has sold its Subaru operation to Riddle Acura, officials said Monday.
Colonial Subaru and Colonial Mitsubishi had operated side-by-side in Chesapeake's Greenbrier community. But Hendrick decided to replace the Subaru business with a large used-car dealership, said Joshua P. Darden Jr., former owner of Colonial Auto. The Colonial Mitsubishi dealership will be retained.
There were several reasons for the move. First, Subarus are an oddity in Hendrick's company, which mostly sells Chevrolets, Saturns, Hondas and a few Mitsubishis. Secondly, company officials discovered the Subaru-Mitsubishi marriage in Chesapeake had several incompatibilities.
But the biggest reason for the Subaru sale is Circuit City's CarMax, a giant used-car venture that may open near the Colonial dealership.
``I think (Hendrick's) long-term plans involve CarMax coming to Battlefield Boulevard,'' Darden said. ``I think he sees the same potential for a used-car superstore that Circuit City does.''
Circuit City won't comment on its plans for Hampton Roads.
Local auto dealer Thomas Riddle purchased Colonial Subaru last week for an undisclosed price. He said he is folding the Subarus into his Riddle Acura dealership, which is just a few blocks away at the intersection of South Military Highway and Greenbrier Parkway.
Riddle said he already has taken the new vehicles to his Acura dealership, and now only needs to tack on signs announcing his new Subarus.
``I have been trying to put another dealership into my franchise,'' said Riddle, who owns the Acura dealership in Chesapeake and a Honda outlet in Portsmouth. ``Acura and Subaru are both high-quality automobiles. They will complement each other.'' by CNB