Automotive News - January 11, 2021 - 33

JANUARY 11, 2021 * 33

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SENATE

DICKINSON FLEET SERVICES

continued from Page 3

Tax policy and CFPB
likely to see changes

Cox Automotive started 2021 by acquiring 2
seemingly disparate companies for undisclosed
amounts. Here's each firm at a glance:
Headquarters: Indianapolis

Leadership: Mike Dickinson and Ted Coltrain,

" without much ado, " she told Automotive
News.
" It means he has a government that is
more supportive of his policies now, " Dziczek
said. " It's not a rubber stamp. It's not a big
majority in either chamber, so spending is
likely to be restrained by that, but I think it
does mean a pretty rapid ramp-up to
achieving some of the things on his agenda. "

executive officers

Focus area: Mobile maintenance for medium

and heavy-duty trucks

FYUSION
Headquarters: San Francisco

Leadership: CEO Radu Rusu

Focus area: Imaging technology

COX

Company broadens reach
with investment approach
continued from Page 8

for digital buyers, Manheim President Grace Huang said.
" We think we have the secret sauce with Fyusion, "
Huang said.
Fyusion co-founder and CEO Radu Rusu will remain
with the company, reporting to an internal board. Rusu
said joining Cox was " imperative " for the relatively small
60-employee firm to achieve scale with its technological
ambitions.
" It's all about understanding the car in its entirety, so
to speak, in every situation, not just imaging, " Rusu said.
Meanwhile, Cox leaders view the acquisition of the much
bigger Dickinson, which employs 800 technicians using
700 mobile service vehicles, as key to its mobility efforts.
Mobility is part of a three-pronged investment approach for Cox Automotive. Rowley said Cox's three investment interests are in core, adjacencies and newgrowth areas, with mobility falling in the last category.
" We have a pretty big definition of mobility from fleet
services to autonomous vehicles, shared vehicles, electrification, batteries, etc., " Rowley said, adding that he
sees the overall mobility market as a $60 billion opportunity.
Rowley noted the growing volume of fleet vehicles on
North American roads, with many being used to deliver
packages over the holidays as more people stay home in
general.
Cox measures the fleet services business in terms of
miles driven.
" By 2030, we predict that the number of miles [driven
in the U.S.] will be about 30 percent driven by the fleet
companies, " Rowley said. " And today that probably sits
somewhere around 6 to 7 percent. So we think there's a
lot of growth in that arena. "
Mike Dickinson and Ted Coltrain, Dickinson's executive officers, will remain in their roles, reporting to Joe
George, president of Cox Automotive's mobility division. The fleet-services firm will be a pillar of Cox's Pivet
mobility brand, which has vehicle servicing hubs in Atlanta, Phoenix and Las Vegas. a

LMP

Automaker approvals
sought for store deals

continued from Page 8

dealerships in West Virginia. The West Virginia
stores are Hometown Kia and Hometown Subaru in Mount Hope; Hyundai of Beckley; Beckley Buick-GMC Automall; and King Coal Chevrolet in Oak Hill. LMP also will buy some
used-only stores in West Virginia.
As of last week. LMP was waiting on automaker approval from Kia, Hyundai and Subaru. LMP said it had received approval from GM
to buy the Chevrolet and Buick-GMC stores in
West Virginia, which GM confirmed.
Richard Aldahan, LMP's COO, said the company was awaiting final approval from GM to
buy the Tennessee store.

Financing in order
LMP now has some financing secured for acquisitions. The company said last month that

REUTERS

Shaping policy
Biden chose former presidential rival
Pete Buttigieg as his nominee to lead the
U.S. Department of Transportation. The
president-elect also picked former Michigan Gov. Jennifer Granholm as his energy
secretary and North Carolina environmental regulator Michael Regan as EPA
administrator.
If confirmed, the three officials will be
tasked with implementing the centerpieces
of Biden's $2 trillion " Build Back Better "
agenda, which includes modernizing infrastructure and shaping future transportation,
energy and climate policy. The plan also
calls for building 500,000 electric vehicle
charging stations across
the nation. For the Alliance for Automotive Innovation - an association representing most
major automakers in
the U.S. as well as some
suppliers and tech companies - many of
Biden's climate and en- Stewart: A set
ergy ideas are in line of opportunities
with its own policy
agenda that steers the U.S. toward an electrified and automated future.
" It's not predicated on one party or the
other being in charge, " said Don Stewart,
the association's executive vice president
of public affairs. " It's just a common set of
really important opportunities that are
good for our work force and our consumers and the environment, frankly. "
Tax policy is also expected to change under Biden's economic agenda, such as an
increase in corporate taxes and an imposition of " commonsense tax reforms " on
America's wealthiest.
Regulation through the Consumer Financial Protection Bureau, too, could be
strengthened, likely providing more transparency in rates and fine-print disclosures
and " making sure people are well-informed consumers when they sign on the
line " for vehicle purchases, Dziczek said.

Supporters of President Donald Trump encounter tear gas at the Capitol last week.
Auto industry leaders condemned the mob that stormed the building and called for unity.

With the congressional makeup set until
the 2022 midterm elections, the Biden administration will have a " fairly narrow
window " to get agenda items through
Congress - meaning several actions
could be front-loaded over the next two
years, she said.
" What the auto industry really wants is
certainty in everything, " Dziczek said.
" When you make investments in the denominations of billions, when your timeline is years - not months - and will last
well beyond this presidency, they want
things that they can
put into planning and
know how it's going to
work. I think that this is
a return to more predictable policymaking
in Washington. "

Call for unity
The Georgia Democrats' Senate sweep was
overshadowed by the
violent actions of a mob that stormed the
U.S. Capitol on Wednesday, Jan. 6, which
delayed the certification of Biden's victory.
The invasion was incited by President
Donald Trump's repeated claims that the
election was " rigged, " despite the U.S. Justice Department stating no evidence of
widespread voter fraud has been found
that would alter the outcome.
Among lawmakers opposing Biden's certification was Republican Rep. Roger Williams, a Texas dealer. Following a heated
confrontation between Democratic and
GOP members on the House floor during
the debate over Pennsylvania's votes, according to a report by The Washington Post,
Williams said: " I'm not ashamed, and neither are my colleagues. We're actually
proud of what we're doing over here. "
But a growing number of lawmakers last
week called for Trump to be removed from

Dziczek: Industry
seeks certainty

Growth plans

LMP Automotive Holdings, a vehicle subscription provider and used-car retailer, wants to
buy numerous franchised dealerships.
Deals approved by General Motors: Beckley Buick-GMC Automall and King Coal Chevrolet

in Oak Hill, both in West Virginia
Deals expected by LMP to close in January: The 2 GM stores; Hometown Kia and

Hometown Subaru, both in Mount Hope; and Hyundai of Beckley, all in West Virginia.
Fuccillo Kia of Cape Coral and Fuccillo Kia of Port Charlotte, both in Florida. BachmanBernard Chevrolet-Buick-GMC-Cadillac in Greeneville, Tenn. LMP also will acquire some
used-only stores.
Deal terminated: Newnan Toyota in Georgia

Deal pending: Purchase of a 70% stake in John Staluppi Sr.'s Atlantic Auto Group of New

York, which operates 17 dealerships and a logistics company
Source: LMP Automotive Holdings

Truist Bank had committed $192 million in financing for the first stage of acquisitions, subject to Truist terms and conditions.
Tawfik, in a statement, said some of the financing would be for new- and used-vehicle
floorplanning and working capital.
In December, LMP also said it had chosen
Truist Securities Inc. as " lead arranger " for up

to $660 million in funding through credit facilities.
At the end of September, LMP had just $3.3
million in cash, down from $17.7 million at the
end of the second quarter.
LMP in October agreed to buy a 70 percent
stake in John Staluppi Sr.'s Atlantic Auto Group
of New York. LMP agreed to pay $425.6 million

office through the 25th Amendment or be
impeached.
A day after the chaotic incident, U.S.
Transportation Secretary Elaine Chao announced her resignation, effective Monday, Jan. 11, citing the " traumatic and entirely avoidable " actions of Trump supporters at the Capitol.
" It has deeply troubled me in a way that I
simply cannot set aside, " Chao said in a
statement.
In remarks last week, Biden called it " one
of the darkest days in the history of our nation " and " an unprecedented assault on
our democracy. "
While the country remains politically divided, auto executives and leading industry groups called for unity.
General Motors CEO Mary Barra via
Twitter urged the nation to " come together
as a country and reinforce the values and
ideals that unite us. "
Ford CEO Jim Farley, in a tweet, also
condemned the " violent and antidemocratic actions. "
In a message to employees, Farley and
Executive Chairman Bill Ford said they
watched the images coming from the Capitol " in complete disbelief. "
" There are no easy lessons to learn from
this moment, " they said.
The National Independent Automobile
Dealers Association and the National Association of Manufacturers also spoke out
against the Capitol siege, each in strongly
worded statements.
UAW President Rory Gamble referred to
the incident as a " very sad day for our nation and our democracy " and condemned
the violence at the Capitol that left at least
five people dead.
" This is a day none of us should or will
ever forget, " he said. " But please let us remember that there is much work to be
done - and we must take the personal responsibility to do it together. " a

for the stake in 17 dealerships, plus a related logistics company.
LMP said at the time that the deal would
close in January.
Tawfik declined to comment on whether
LMP had received any automaker approvals
for the Atlantic deal, which includes Toyota,
Lexus, Chevrolet, Hyundai, Genesis and Honda brands. And he said he could not comment
on when the deal may close, though an update
is expected this week.

Opportunities ahead
LMP continues to look at more deals, Tawfik
said, and has " multiple letters of intent " to
buy dealerships beyond those already announced.
He said LMP has reached the " big leagues "
with other publicly traded auto retailers now
that it has received approval from GM and a financing commitment and financing infrastructure.
" We anticipate some interesting deals going
forward over and above what's been contracted, " Tawfik said. a

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Automotive News - January 11, 2021

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