EDMONTON, March 16, 2015 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX: ACQ) today announced that it has signed a Letter of Intent with Kia Canada Inc. ("Kia") which, subject to the completion of requirements and conditions contained in the Letter of Intent, will award AutoCanada an open point Kia dealership in Winnipeg, Manitoba. AutoCanada intends to operate the dealership out of a new facility, designed to Kia image standards, with construction anticipated to commence in Q4, 2015 or Q1, 2016.
"We would like to thank Kia Canada for their continued confidence through the awarding to AutoCanada of the North Winnipeg Open Point, the second such open point awarded to AutoCanada by Kia. The addition of the Kia brand to our existing local platform will allow us to broaden our product offerings to our Winnipeg customer base," stated Mr. Patrick Priestner, Executive Chair of AutoCanada. Mr. Priestner further noted, "open point dealerships, although they typically result in short term operating losses, are excellent investments as they do not incur the payment of goodwill, and thus we look forward to the contribution we can make to expanding the Kia brand in this community and to providing greater choice to the customer."
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 46 franchised dealerships in eight provinces and has over 2,700 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, BMW and MINI branded vehicles. In 2013, our dealerships sold approximately 36,000 vehicles and processed approximately 364,000 service and collision repair orders in our 406 service bays during that time.
AutoCanada est l'un des plus importants groupes de concessions automobiles à établissements multiples du Canada. Elle exploite actuellement 48 concessions franchisées dans huit provinces et emploie plus de 3 600 employé(e)s. AutoCanada vend actuellement des véhicules de marques Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, BMW et MINI. En 2013, nos concessions ont vendu environ 36 000 véhicules et traité environ 364 000 demandes d'entretien et de réparation par suite de collision à nos 406 aires de service.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release may be forward-looking statements and forward-looking information. In particular, forward-looking information and statements in this press release include, but are not limited to, the successful completion of the requirements and conditions in the Letter of Intent with Kia Canada and the final award of the open point Kia dealership. These forward-looking statements and information are based on certain key expectations and assumptions made by AutoCanada, including the assumption that all necessary requirements and conditions will be satisfied and all necessary approvals will be obtained. Although AutoCanada believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as AutoCanada cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risk that the requirements and conditions in the Letter of Intent with Kia will not be completed and that the final award of the Kia dealership will be delayed or not completed, along with general economic, market and business conditions. Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect AutoCanada's operations, financial results and the completion of the proposed acquisition are included in AutoCanada's annual information form and the other disclosure documents filed by AutoCanada with securities regulatory authorities which may be accessed through the SEDAR website at www.sedar.com. The forward-looking statements and information contained in this press release are made as of the date hereof and AutoCanada does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE AutoCanada Inc.
For further information: Christopher Burrows, Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: email@example.com