Fletcher Jones acquires Mercedes-Benz store as brand faces potential geopolitical turmoil

In terms of geopolitical risk, Mercedes-Benz franchises were, at the time of writing, facing what seems like a considerable amount. A bill before the House of Representatives bans the sale in the U.S. of vehicles with Chinese ownership. Between them, Chinese automakers own 19.67% of Mercedes-Benz Group AG.

Firms handling transactions involving the German brand were, naturally, offering assurances regarding the threat to the brand, however. That included The Presidio Group, which recently represented Group 1 Automotive in its March 30 sale of Mercedes-Benz of Beverly Hills to Fletcher Jones Automotive Group.

A Presidio Perspectives piece calls the bill “a moment for perspective, not overreaction.”

Mercedes-Benz has a significant manufacturing footprint in the U.S., and “we are confident a mutually beneficial solution will likely be reached that protects Mercedes-Benz’s U.S. interests, including those of its dealers,” the Perspective said.

Meanwhile, Keith May, president of Fletcher Jones Automotive Group, told Getting to Go he preferred to leave politics to Mercedes-Benz USA and the politicians. As for how it may impact the Group’s future acquisition strategy, he said:

“As far as Fletcher Jones is concerned, as we talked about recently on our acquisitions, we will evolve and adapt to the ever changing trends we see in the market as best we can.”

To be sure, Fletcher Jones was the natural candidate for the acquisition of Mercedes-Benz of Beveryly Hills. Fletcher Jones also owns an Audi dealership in Beverly Hills. After selling a Mercedes-Benz store in Northern California in June, the Group now owns four Mercedes franchises including Fletcher Jones Motorcars in Newport Beach, CA, the largest Mercedes dealer in the U.S. by volume.

“Fletcher Jones is an iconic, amazing company” and acquiring the Beverly Hills dealership “was a natural move for them,” George Karolis, president of The Presidio Group, told Getting to Go.

Two-way portfolio management

The sale seems to be another step in the paring back of its California presence by Group 1. On March 31, the publicly traded group also sold a Mercedes-Benz dealership in Anaheim, CA to Envision Motors. Group 1 still owns two Honda stores and a Toyota store in California.

Nationwide, it owns more than 250 dealerships. Group 1 also owns 32 collision centers in the U.S.

Selling stores is part of a natural portfolio management strategy, Karolis said. “As most of the large companies often do, they actively are evaluating their portfolios,” he said.

Fletcher Jones also has been managing its portfolio. In September of 2025, it sold an Audi store and a Mercedes store in Chicago to publicly listed AutoNation, Inc. In a press release May said that the sale would allow Fletcher Jones to focus on its “core West Coast markets.”

Then there is the aforementioned sale of Fletcher Jones Motors in Fremont, California.

May has said that while the California market may be “a little idiosyncratic,” Fletcher Jones understands how to do business here. Besides its 11 new car dealerships in California, the group owns several stores in Nevada.

A bit of choppiness

Despite the uncertain geopolitical environment, Mercedes-Benz is a high quality brand that will continue to do well in the buy sell market, said Karolis. “We are seeing a ton of demand for Mercedes,” he said.

Luxury brand franchises overall are “top of mind” for larger dealership groups, Karolis said. “The luxury segment is really hot,” he said.

However, the buy sell market in general is experiencing a bit of geopolitical turbulence, Karolis added. “The market in general is a little choppy because of the Iran War and high gas prices” and the like, he said.