Billion Auto expands to 3 Iowa City dealerships

Billion Automotive has acquired GMC-Buick dealer Community Motors and McEleney Autoplex, a Chevrolet and Hyundai dealership, expanding its Iowa City presence to three dealerships.

Billion Automotive took over the dealerships on Dec. 14 under a management agreement, obtaining factory approvals from the automakers later that week, according to company President David Billion. Billion Automotive acquired Chezik-Bell Honda on Nov. 23 from owner John Chezik of Kansas City, Mo.

Community Motors was acquired from Jim Skarlis. McEleney Autoplex was bought from John McEleney. The acquisitions were completed through Billion Hawkeye, a subsidiary created for the Iowa City market. Terms of the deals were not disclosed.

Billion Auto bought all three dealership in the Iowa City market to enable the company to offer a better selection of manufacturers and nameplates, Billion said. Sales of different manufacturers tend to ebb and flow with the popularity of their models, but having a variety of nameplates can smooth out those cycles, he said.

“It's kind of nice to be able to offer a portfolio of brands,” Billion said.

Billion said no major staff changes are in store for the dealerships, although it is considering some physical changes and possible consolidation of the GM brands.

Billion Auto has been ranked among the top 10 Internet sellers of vehicles. The company liked the Iowa City market area because it has a strong, stable base of potential buyers, similar to Sioux Falls, Billion said.

The acquisitions will give the family-owned dealership chain, based in Sioux Falls, S.D., a total of 14 dealerships.

The Iowa City dealerships are overseen by Duke Owens, vice president of operations.