Carvana, a Tempe-based company predominantly known for its online user car sales, has branched out into the franchise auto dealership territory with a fresh acquisition in Casa Grande. ABC15 reports that Carvana has closed on the acquisition of Jerry Seiner Chrysler Dodge Jeep Ram, a move that is gauged to broaden its business scope beyond its well-established e-commerce platform. The dealership, sitting at 2425 E. Florence Blvd. in Casa Grande, will reopen as Casa Grande CDJR today, preserving jobs for its current roster of 41 employees.
On a parallel note, CBT News revealed that the completed acquisition took place last Friday, situating Carvana around 45 miles from its Tempe headquarters. Bearing the mantel of Casa Grande Chrysler-Dodge-Jeep-Ram, the dealership remains a symbol of Carvana's new stride into new vehicle sales, a significant shift from its original used-cars-only mandate. This strategic direction emerges amid a backdrop where Carvana has juggled financial and operational challenges, dealing with a fluctuating industry and a turbulent used car market sphere.
In a historical context, Carvana's drive into new-car sales reflects a pattern once traced by CarMax, the largest used vehicle retailer in the nation. Known for pioneering a similar transition into new car sales with a mid-90s Chrysler franchise, CarMax, however, reverted focus exclusively to used cars by discontinuing its new vehicle dealerships in 2021, as per CBT News. Carvana's recent move stirs curiosity regarding its long-term business model and whether this signifies a deeper incursion into franchised dealership territory or is a standalone effort.
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