Asbury Buys Herb’s 52 Franchises, Honda-Nissan Back On?, Amazon Physical Store Struggles

Today, we talk about the massive $1.34 Billion acquisition of The Herb Chambers Companies by Asbury Automotive. Plus, there still could be a path forward for Honda and Nissan’s merger, and Amazon is not doing well in the physical retail space.

Show Notes with links:

• One of the biggest dealership acquisitions in U.S. auto retail history is on the horizon as Asbury Automotive Group signs a definitive agreement to acquire The Herb Chambers Companies. This $1.34 billion deal includes 33 dealerships, 52 franchises, and three collision centers, adding to Asbury’s nationwide footprint.
  • The acquisition represents $2.9 billion in revenue in 2024, making it one of the most significant transactions in the industry.
  • Herb Chambers will retain ownership of Mercedes-Benz of Boston but will step into a Special Advisor role at Asbury.
  • The deal is expected to close late in Q2 2025, pending customary approvals.
  • Asbury’s CEO David Hult praised the move, saying, “Herb is an icon in Boston, and he has built a world-class organization.”
  • Herb Chambers reflected on the sale: “As I look back on the last 40 years in business, I do so with immense pride, and as I look forward, I will do so with great satisfaction knowing what we built together will be in trusted hands,”

• The possibility of Honda and Nissan merging to form the world’s fourth-largest automaker is back on the table—but with one major condition: Nissan CEO Makoto Uchida must step down, according to the Financial Times.
  • Talks to create a $60 billion company collapsed last week, deepening Nissan’s struggles amid hybrid shortages and Chinese competition.
  • Renault and Nissan’s board are reportedly pushing Uchida to exit, with informal discussions on his departure already underway.
  • Honda CEO Toshihiro Mibe has ruled out a hostile takeover but is open to renewed negotiations under new Nissan leadership.
  • Mitsubishi shares jumped 8.6% on the news, as a Honda-Nissan deal would stabilize its position, reducing its dependence on Nissan.
  • Analyst Tatsuo Yoshida sees a potential Honda-Nissan partnership as a win-win, but warns that Nissan must first “get its act together.”

• Despite its dominance in e-commerce, Amazon continues to stumble in physical retail, as detailed in a Wall Street Journal report. From Amazon Go to Amazon Style, the company has repeatedly failed to make stores work, raising questions about its brick-and-mortar strategy.
  • Amazon Go now has just 16 stores, after cutting half its locations since 2023.
  • Amazon Books, Amazon 4-Star, and Amazon Style all shut down within the past three years.
  • "Just Walk Out" tech was removed from Amazon Fresh stores in April 2024, as customers preferred Dash Cart smart shopping carts instead.
  • Critics argue Amazon “doesn’t understand retail,” with poor store design and a lack of clear purpose in past concepts.
  • Whole Foods remains its one success story, with Amazon making price c

Hosts: Paul J Daly and Kyle Mountsier

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/

Read our most recent email at: https://www.asotu.com/media/push-back-email