AutoNation Adds Three Fremont Luxury Stores as Dealership Deals Keep Rolling

AutoNation just planted a bigger flag in northern California, picking up three high-end dealerships in Fremont and showing that the appetite for premium stores has not cooled one bit.

• AutoNation bought Mercedes-Benz, Audi, and Porsche stores in Fremont from Fletcher Jones Automotive Group, effective June 22.
• The three Fremont stores bring in roughly $400 million in combined yearly revenue and move about 4,800 new and used vehicles annually.
• The deal follows AutoNation’s March purchase of Mercedes-Benz of Beverly Hills, part of a steady run of luxury buy-sell activity.

What Changed Hands in Fremont

The deal covers three luxury rooftops in Fremont, a city sitting near the eastern shore of San Francisco Bay. AutoNation picked up the Mercedes-Benz, Audi, and Porsche franchises along with the real estate underneath them. The former Fletcher Jones Motorcars store now carries a new name, Mercedes-Benz of Fremont, while Audi Fremont and Porsche Fremont round out the trio. A collision repair center came along with the package too.

These are not small stores. Together they generate close to $400 million in annual revenue and sell about 4,800 new and used cars a year. That kind of volume in a wealthy, fast-moving market is exactly what a public retailer wants when it puts money to work. For AutoNation, the addition deepens a California presence that already runs wide across the state.

Why Fletcher Jones Sold

Selling well-performing stores might seem odd, but it fits a pattern that bigger groups follow on purpose. Keith May, president of Fletcher Jones Automotive Group, connected the move to the company’s disciplined portfolio review process. In plain terms, the group looks hard at which stores belong in its mix and trims the ones that no longer fit the long-term plan, even when those stores are healthy.

The Presidio Group, a merchant banking firm focused on automotive retail, advised Fletcher Jones on the transaction. George Karolis, Presidio’s president, framed the sale as a sign of how active the high-end segment has become. He noted that careful portfolio management is bringing strong luxury dealerships to market and that those assets are drawing intense interest from the largest and most sophisticated buyers, especially in California.

A Bigger Bet on California Luxury

AutoNation made its reasoning clear. CEO Mike Manley described the purchase as a way to build out the company’s premium luxury portfolio in a desirable California market while keeping its capital focused on high-quality assets. That same disciplined theme shows up on both sides of this deal, which tells you something about how buyers and sellers are thinking right now. Nobody is rushing. They are picking spots.

This is also the second notable luxury grab for AutoNation in a matter of months. Back in March the retailer added Mercedes-Benz of Beverly Hills, another marquee store in another wealthy California pocket. String those two together and a strategy comes into focus. AutoNation wants premium brands in places where buyers have money to spend and trade-ins stay strong.

Demand for Mercedes-Benz, Audi, and Porsche stores stays high as buyers look to expand in key markets, Karolis noted. California, with its density of affluent shoppers, sits near the top of that wish list. Sellers know it, which is part of why a group like Fletcher Jones can move three stores and find eager bidders quickly.

The Wider Buy-Sell Picture

Step back and this deal lines up with a busy stretch for dealership mergers and acquisitions. The Haig Report showed M&A activity climbing sharply in the first quarter of 2026, with multi-store transactions up 54% from a year earlier. Private buyers handled 96% of those Q1 purchases, so a public player like AutoNation making a splashy luxury buy stands out a little against that backdrop.

Profits have come down from their pandemic-era peaks, with average publicly owned dealership profit falling 16% year over year to $824,000. Even so, that figure still runs 109% above where it sat before the pandemic. Stores are still making good money, and buyers clearly believe the strong ones are worth chasing.

What to Watch Next

For dealers and industry watchers, the Fremont deal is a useful marker. It says luxury franchises in rich markets remain prized, that big groups are willing to sell good stores to sharpen their portfolios, and that well-capitalized buyers are ready to pounce when the right assets appear. Keep an eye on California in particular. As long as demand for premium brands holds and sellers stay disciplined, expect more of these stores to trade hands before the year is out.