Editor’s Note: This story has been updated since its original publication to correct information regarding the National Automobile Dealers Association approval of Team Automotive Group’s acquisition of Diamond Mazda. The NADA does not approve or regulate buy-sell transactions among auto dealers. Daily Report regrets this error.
Team Automotive Group is expanding its Baton Rouge footprint with the acquisition of Diamond Mazda from its longtime owner, the Andre family.
The deal is expected to be finalized later this month. Terms of the sale were not disclosed.
The acquisition will give Team three dealerships locally. The company also owns Team Honda and Team Toyota, as well as Team Honda South and Team Collision.
Team’s General Manager Preston Q=Petersen, whose father created the dealership in 1988 with the acquisition of what was then Baton Rouge Honda, says he wasn’t looking to expand but that the opportunity presented itself just two months ago.
“We found out in May that they were planning to close and we felt it would be a good fit for us,” he says. “We reached out to them and they were amenable to selling so it’s kind of a win-win for everybody.”
The Mazda dealership is a good fit for several reasons. At 6363 Siegen Lane, Team Honda is located near the Mazda dealership at 10968 Airline Hwy., and its collision center backs up to it so it will be easy to share resources. Because Mazda is a Japanese automaker, like Honda and Toyota, there’s also a familiarity with the brand, Q=Petersen says.
What’s more, Mazda—which has only about 2% of the U.S. auto market—has tried in recent years to position itself against Honda and Toyota as a niche player, with a focus on design and performance. It’s starting to pay off. Earlier this year, U.S News & World Report ranked Mazda as the best car brand in the country, and Consumer Reports rated several of its models among its most highly recommended.
“It’s a great brand,” Q=Petersen says. “We think it will really be a great addition to Team.”
Team is the fifth-largest auto dealer in the local market with sales last year of around $240 million. All Star Automotive and Price LeBlanc are the largest dealers locally, with 2015 sales of nearly $494.2 million and more than $454 million, respectively, according to Business Report’s 2016 listing of the top 100 private companies in the area.
Team management began running Diamond Mazda on Saturday, but is doing so under a management agreement until the sale is finalized. Once the deal is approved, Diamond Mazda will change its name to Team Mazda.
—Stephanie Riegel
