McGrath buys Zimmerman Auto Center

CEDAR RAPIDS - With the McGrath Auto Group dealership's purchase of Cedar Rapids-based Zimmerman Auto Center, it further expands its reach in the city.

The McGrath Auto Group, which announced the deal in a post on its website Monday, is set to officially take over Zimmerman Auto Center on Aug. 11.

'Right now, McGrath and ourselves are working together over the next two weeks to make the transition as smooth as possible,” said owner Mark Zimmerman, who bought the company from his father, Bob Zimmerman.

Zimmerman and Pat McGrath, owner of McGrath Auto Group, did not disclose the total amount of the purchase.

The acquisition allows McGrath to expand its inventory for new cars, parts and service in three new franchises - Ford, BMW and Mitsubishi, McGrath said.

Zimmerman also is selling its Hyundai franchise. McGrath owns a Dubuque-based Hyundai dealership, which opened in 2016, but this expansion will enable the company to sell and service the vehicle brand in Cedar Rapids, McGrath said,

'We decided to purchase Zimmerman because there are four really good brands we wanted to add to our dealership,” McGrath said.

McGrath said his company intends to separate the brands in the Zimmerman property into franchise-specific lots and showrooms. However, this process won't happen for another 12 months, he said.

The Zimmerman dealership employs about 80.

'We'd like to retain quite a few of them,” McGrath said.

Throughout its automotive divisions, as well as its Harley-Davidson motorcycle and power sport stores, McGrath employs around 860 employees.

The Zimmerman Collision Center, located on Council Street NE next to Pat McGrath Chevyland, also was sold in the deal.

Zimmerman said he decided to sell because 'the timing was right” for him and his wife, Tracy Zimmerman, as well as Zimmerman's sister Anne Dundorf, who is a minority shareholder.

'My wife and I are looking forward to the next chapter in our lives,” Zimmerman said.

The McGrath auto dealerships have been in operation since 1952, and Bob Zimmerman bought his company in 1969.

l Comments: (319) 368-8536; michaela.ramm@thegazette.com