Sonic Automotive Suspends Operations at Eight EchoPark Sites
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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