RubinBrown Dealership Stats 2018

’18

DEALERSHIP STATS

A publication by RubinBrown LLP

M&A ACTIVITY OVERVIEW OVERALL TRANSACTION ACTIVITY

Contents

RubinBrown is pleased to present the 2018 Dealership Statistical Analysis, the inaugural survey compiled by the Transportation & Dealership Services Group. Recognizing that the complexities and business issues in the automotive industry are unique, RubinBrown has established a separate group to specialize in this area. As a service to the dealerships that we serve, we have developed the RubinBrown Dealership Stats. The statistical information includes new vehicle sales throughout the United States by make as well as detailed breakdown of sales by the most popular manufacturers. The information within the report was gathered from new vehicle sales as reported by Automotive News .

1 Executive Summary 2 Comparison of Total Sales by True Manufacturer 4 Unit Sales by Make 8 Chevrolet Analysis 10 Fiat Chrysler Analysis 12 Ford Analysis 14 Toyota Analysis 16 RubinBrown Transportation & Dealership Services Group

If you have questions about this publication, please contact us (see page 17 for contact information).

EXECUTIVE SUMMARY

Industry Update Throughout 2017, many manufacturers witnessed continued growth or maintained the increased sales volume experienced since 2014. With vehicle sales hitting record highs in 2016, any increase continued to break records in 2017. Unfortunately for some, these record volumes were not sustainable and some manufacturers experienced a decrease in volume overall during 2017. As has been the case over the past 5 years, truck sales continued to increase, growing 4.5% in 2017 over the previous year. The increase capped an over 40.0% increase in truck sales from 2013 to 2017. The increase was caused mainly by the continued expansion in crossover vehicles. Another contributing factor was the increased demand for larger trucks and SUVs thanks in part to gas prices leveling off to more reasonable rates. Although truck sales have continued to increase, car sales have done the opposite, decreasing over 20.0% from 2013 to 2017. Car sales hit an all-time low in 2017, barely crossing over the 6 million units sold mark. The top automotive groups, General Motors, Ford Motor Company, Toyota Motor Sales, Fiat Chrysler and Honda continue to be the top 5 manufacturers. Combined these groups hold nearly 68.0% of the overall market sales with minimal change over recent years. General Motors continues to control the market share holding over 17.0% of total vehicle sales for 2017. This is primarily due to the Chevrolet brand representing nearly 12.0% of the market share for sales in 2017. General Motors additional brands (GMC, Buick and Cadillac) also contributed to the strong market share. In contrast, Ford’s name brand represented over 14.0% of market share in 2017. Tax Reform Many dealer principles are excited about the recently passed tax bill and its impact on their dealership. For those dealerships that are pass-through entities (i.e. S-Corporations and Partnerships) many owners will likely qualify for a deduction of up to 20% of taxable income as a result of the new tax bill.

One potential downside of the tax bill is the limitation on interest expense that companies have to determine. NADA and other lobbyist for the automotive industry fought hard to exclude dealerships floorplan interest from this new change, however it does come at a cost that will need to be evaluated. If a Dealerships elects to exclude its floorplan interest from the interest limitation calculation, they are not allowed to take bonus deprecation on any assets placed into service that year. Bonus depreciation was a signification change in the bill going from 50% in year 1 to 100% in year 1 for both new and used assets placed into service. The new tax bill is forcing all companies, particularly dealerships, to evaluate all segments of their business to determine the best course of action under the new laws. Other dealership specific items to review is the current treatment of commissions for warranty and third part agreements, treatment of floorplan credits, offshore reinsurance companies as well as consideration of switching to a C-Corporation. Outlook As we look towards 2018, it is expected that new vehicle sales will slip as predicted by the National Automotive Dealers Association’s (NADA) 2018 U.S. sales forecast. The forecast predicts the number of new and light trucks sales to be 16.7 million, nearly a 3.0% decrease from the sales recorded by Automotive News for 2017. While it is not expected the record breaking sales volume from the past 3 years to continue, the prediction of units sold in 2018 from NADA is just shy of the 17 million mark seen in 2015 to 2017.

1

Executive Summary

COMPARISON OF TOTAL SALES BY TRUE MANUFACTURER

2017 MARKET SHARE BY TRUE MANUFACTURER

3.62%

2.05%

7.08%

9.52%

2.18%

American Honda Motor Co.

Hyundai - Kia Automotive

BMW Group

Jaguar Land Rover N.A.

14.12%

12.03%

Daimler AG

Nissan N.A.

Fiat Chrysler Automobiles

Toyota Motor Sales

Ford Motor Co.

VW Group of America

9.24%

14.93%

General Motors

Other

7.27%

0.55%

17.41%

2017

2016

YEAR-OVER- YEAR % CHANGE

YEAR-OVER- YEAR % CHANGE

TOTAL UNITS SOLD

MARKET SHARE

TOTAL UNITS SOLD

MARKET SHARE

True Manufacturer

American Honda Motor Co.

1,641,429

9.52%

0.21%

1,637,942

9.34%

3.24%

BMW Group

354,110

2.05%

-3.36%

366,428

2.09%

-9.67%

Daimler AG

375,311

2.18%

-1.43%

380,752

2.17%

0.08%

Fiat Chrysler Automobiles

2,075,413

12.03%

-8.14%

2,259,309

12.88%

0.07%

Ford Motor Co.

2,575,200

14.93%

-0.92%

2,599,211

14.82%

-0.15%

General Motors

3,002,237

17.41%

-1.33%

3,042,775

17.35%

-1.28%

Hyundai - Kia Automotive

1,254,629

7.27%

-11.37%

1,415,655

8.02%

2.03%

Jaguar Land Rover N.A.

95,387

0.55%

0.31%

95,088

0.54%

11.81%

Nissan N.A.

1,593,464

9.24%

1.86%

1,564,423

8.92%

5.35%

Toyota Motor Sales

2,434,515

14.12%

-0.62%

2,449,630

13.97%

-1.99%

VW Group of America

623,916

3.62%

5.72%

590,170

3.36%

-2.75%

Other

1,220,261

7.08%

7.26%

1,137,669

6.49%

4.26%

Total Sales (Units)

17,245,872

100.00%

17,539,052

100.00%

Source: Automotive News

2

RubinBrown Dealership Stats 2018

TOTAL UNIT SOLD BY YEAR

11,125,098

6,120,774

17,245,827

2017

10,645,974

6,893,078

17,539,052

2016

9,897,997

7,572,662

17,470,659

2015

16,531,070

8,596,256

7,934,814

2014

0

5M

15M

10M

20M

TOTAL TRUCK UNITS

TOTAL CAR UNITS

2015

2014

YEAR-OVER- YEAR % CHANGE

YEAR-OVER- YEAR % CHANGE

TOTAL UNITS SOLD

MARKET SHARE

TOTAL UNITS SOLD

MARKET SHARE

1,586,551

9.08%

2.96%

1,540,872

9.32%

1.02%

American Honda Motor Co.

405,677

2.32%

2.25%

396,750

2.40%

5.30%

BMW Group

380,461

2.18%

3.78%

366,589

2.22%

6.69%

Daimler AG

2,257,728

12.92%

7.22%

2,105,682

12.74%

16.65%

Fiat Chrysler Automobiles

2,603,082

14.90%

5.33%

2,471,315

14.95%

-0.56%

Ford Motor Co.

3,082,366

17.64%

5.02%

2,935,008

17.75%

5.35%

General Motors

1,387,528

7.94%

6.25%

1,305,952

7.90%

3.98%

Hyundai - Kia Automotive

85,048

0.49%

26.49%

67,238

0.41%

0.41%

Jaguar Land Rover N.A.

1,484,918

8.50%

7.07%

1,386,895

8.39%

11.09%

Nissan N.A.

2,499,313

14.31%

5.29%

2,373,771

14.36%

6.16%

Toyota Motor Sales

606,840

3.47%

1.19%

599,699

3.63%

-1.93%

VW Group of America

1,091,147

6.25%

11.19%

981,299

5.93%

16.67%

Other

Total Sales

17,470,659

100.00%

16,531,070

100.00%

3

Comparison of Sales

UNIT SALES BY MAKE (A – L)

2017

2016

CAR SALES

TRUCK SALES

COMBINED TOTAL

CAR SALES

TRUCK SALES

COMBINED TOTAL

154,602

161,360

Acura

48,421

106,181

53,504

107,856

12,031

516

Alfa Romeo

9,310

2,721

516

—

684

1,032

Aston Martin*

684

—

1,032

—

226,511

210,213

Audi

106,652

119,859

107,752

102,461

2,405

2,581

Bentley

1,253

1,152

1,697

884

305,685

313,174

BMW

171,375

134,310

181,419

131,755

219,231

229,631

Buick

41,592

177,639

84,845

144,786

156,440

170,006

Cadillac

50,278

106,162

69,290

100,716

2,065,879

2,096,510

Chevrolet

640,777

1,425,102

736,581

1,359,929

188,545

231,972

Chrysler

69,694

118,851

110,535

121,437

446,996

506,858

Dodge

163,569

283,427

203,947

302,911

2,340

2,460

Ferrari*

2,340

—

2,460

—

26,492

32,742

Fiat

17,163

9,329

17,912

14,830

2,464,041

2,487,487

Ford

555,838

1,908,203

653,300

1,834,187

20,594

6,948

Genesis

20,594

—

6,948

—

560,687

546,628

GMC

—

560,687

—

546,628

1,486,827

1,476,582

Honda

752,563

734,264

771,921

704,661

664,961

768,057

Hyundai

417,055

247,906

547,087

220,970

153,415

138,293

Infiniti

57,262

96,153

53,908

84,385

39,594

31,243

Jaguar

20,648

18,946

21,227

10,016

828,522

926,376

Jeep

—

828,522

—

926,376

589,668

647,598

Kia

366,108

223,560

407,535

240,063

1,056

1,032

Lamborghini*

1,056

—

1,032

—

74,739

73,861

Land Rover

—

74,739

—

73,861

305,132

331,228

Lexus

104,290

200,842

136,054

195,174

111,159

111,724

Lincoln

39,552

71,607

40,746

70,978

36

168

Lotus*

36

—

168

—

Total Sales (Units) Makes A – L

3,658,110

7,450,162

11,108,272

4,211,416

7,294,864

11,506,280

*Sale estimates provided by Automotive News

Source: Automotive News

4

RubinBrown Dealership Stats 2018

2015

2014

CAR SALES

TRUCK SALES

COMBINED TOTAL

CAR SALES

TRUCK SALES

COMBINED TOTAL

177,165

167,843

67,929

109,236

57,297

110,546

Acura

663

91

663

—

91

—

Alfa Romeo

1,020

—

1,020

—

—

—

Aston Martin*

202,202

182,011

115,154

87,048

112,734

69,277

Audi

2,686

3,003

2,686

–

3,003

—

Bentley

346,023

339,738

230,347

115,676

229,470

110,268

BMW

223,055

228,963

93,425

129,630

117,771

111,192

Buick

175,267

170,750

70,494

104,773

86,650

84,100

Cadillac

2,125,347

2,033,442

766,873

1,358,474

880,683

1,152,759

Chevrolet

324,846

308,785

230,998

93,848

170,745

138,040

Chrysler

517,153

574,155

250,426

266,727

282,033

292,122

Dodge

2,124

2,100

2,124

–

2,100

–

Ferrari*

42,410

46,121

25,084

17,326

33,708

12,413

Fiat

2,501,855

2,376,841

760,039

1,741,816

762,545

1,614,296

Ford

—

—

—

—

—

—

Genesis

558,697

501,853

—

558,697

—

501,853

GMC

1,409,386

1,373,029

757,302

652,084

793,026

580,003

Honda

761,710

725,718

579,985

181,725

570,505

155,213

Hyundai

133,498

117,330

64,877

68,621

65,263

52,067

Infiniti

14,466

15,773

14,466

—

15,773

—

Jaguar

865,028

692,348

—

865,028

—

692,348

Jeep

625,818

580,234

419,075

206,743

420,202

160,032

Kia

756

708

756

—

708

—

Lamborghini*

70,582

51,465

—

70,582

—

51,465

Land Rover

344,601

311,389

171,131

173,470

174,235

137,154

Lexus

101,227

94,474

37,778

63,449

42,169

52,305

Lincoln

80

—

80

—

—

—

Lotus*

Total Sales (Units) Makes A – L

4,662,712

6,864,953

11,527,665

4,820,711

6,077,453

10,898,164

Unit sales M – Z continued on page 6

5

Sales by Make (A – L)

UNIT SALES BY MAKE (M – Z)

2017

2016

CAR SALES

TRUCK SALES

COMBINED TOTAL

CAR SALES

TRUCK SALES

COMBINED TOTAL

13,697

12,534

Maserati

8,249

5,448

10,617

1,917

289,470

297,773

Mazda

119,714

169,756

150,555

147,218

1,110

—

McLaren

1,110

—

—

—

372,240

374,541

Mercedes-Benz

173,468

198,772

181,637

192,904

47,105

52,030

Mini

32,241

14,864

39,324

12,706

103,686

96,267

Mitsubishi

35,117

68,569

36,624

59,643

1,440,049

1,426,130

Nissan

664,268

775,781

737,605

688,525

55,420

54,280

Porsche

20,788

34,632

19,565

34,715

556,790

545,851

Ram

—

556,790

—

545,851

1,320

1,224

Rolls-Royce*

1,320

—

1,224

—

205

12,028

Scion

205

—

12,028

—

3,071

6,211

Smart

3,071

—

6,211

—

647,956

615,132

Subaru

171,369

476,587

157,964

457,168

55,120

26,725

Tesla*

31,120

24,000

24,000

2,725

2,129,178

2,106,374

Toyota

910,600

1,218,578

999,475

1,106,899

339,676

322,948

Volkswagen

262,029

77,647

275,087

47,861

81,507

82,724

Volvo

27,995

53,512

29,746

52,978

—

—

Other

—

—

—

—

Total Sales (Units) Makes M – Z

2,462,664

3,674,936

6,137,600

2,681,662

3,351,110

6,032,772

Combined Total Sales (Units)

6,120,774

11,125,098

17,245,872

6,893,078

10,645,974

17,539,052

*Sale estimates provided by Automotive News

Source: Automotive News

6

RubinBrown Dealership Stats 2018

2015

2014

CAR SALES

TRUCK SALES

COMBINED TOTAL

CAR SALES

TRUCK SALES

COMBINED TOTAL

11,697

12,943

11,697

—

12,943

—

Maserati

319,183

305,801

174,670

144,513

176,570

129,231

Mazda

—

—

—

—

—

—

McLaren

372,977

356,136

205,053

167,924

212,086

144,050

Mercedes-Benz

58,514

56,112

41,828

16,686

33,467

22,645

Mini

95,342

77,643

39,321

56,021

33,521

44,122

Mitsubishi

1,351,420

1,269,565

748,502

602,918

789,898

479,667

Nissan

51,756

47,007

21,749

30,007

23,561

23,446

Porsche

493,807

469,139

—

493,807

—

469,139

Ram

1,140

900

1,140

—

900

—

Rolls-Royce*

56,167

58,009

56,167

—

58,009

—

Scion

7,484

10,453

7,484

—

10,453

—

Smart

582,675

513,693

166,262

416,413

282,052

231,641

Subaru

22,800

26,400

22,635

165

26,400

—

Tesla*

2,098,545

2,004,373

1,075,746

1,022,799

1,085,924

918,449

Toyota

349,440

366,970

306,560

42,880

333,785

33,185

Volkswagen

70,047

56,366

31,136

38,911

33,138

23,228

Volvo

—

1,396

—

—

1,396

—

Other

Total Sales (Units) Makes M – Z

2,909,950

3,033,044

5,942,994

3,114,103

2,518,803

5,632,906

Combined Total Sales (Units)

7,572,662

9,897,997

17,470,659

7,934,814

8,596,256

16,531,070

7

Sales by Make (M – Z)

M&A ACTIVITY OVERVIEW OVERALL TRANSACTION ACTIVITY CHEVROLET ANALYSIS

2017

MALIBU

MOST POPULAR CAR BY SALES

SILVERADO MOST POPULAR TRUCK BY SALES

As mentioned previously, Chevrolet has maintained approximately 12.0% of the market share of new vehicle sales over the past few years. This is mainly due to its tremendous truck sales volume which makes up over 14.0% of all truck sales in the United States. Chevrolet’s most popular truck model is the Silverado, selling nearly 600,000 units in 2017 and making up over 40.0% of Chevrolet’s total truck sales. Additionally, with increasing sales in the Equinox and Traverse models, the long-standing popularity of the Tahoe and Suburban units continue to decline. Chevrolet car sales are led by the Malibu and the Cruze, both of which are nearly 29.0% of total Chevrolet car sales.

25% 0% CHEVROLET’S MARKET SHARE OF TOTAL SALES 11.8%

CHEVROLET’S CARS VS. TRUCKS SOLD (%) 0% 100% 31.0% 69.0%

CHEVROLET’S UNIT SALE TRENDS

1,425,102

640,777

2,065,879

2017

1,359,929

736,581

2,096,510

2016

1,358,474

766,873

2,125,347

2015

2,033,442

1,152,759

880,683

2014

0

3M

1M

2M

TOTAL TRUCK UNITS

TOTAL CAR UNITS

8

RubinBrown Dealership Stats 2018

Chevrolet | U.S. Light-Vehicle Sales and Market Share by Nameplate

2017

2016

2015

2014

UNITS SOLD

% OF CAR SALES

UNITS SOLD

% OF CAR SALES

UNITS SOLD

% OF CAR SALES

UNITS SOLD

% OF CAR SALES

CAR

Bolt

23,297

3.64%

579

0.08%

—

0.00%

— 0.00%

Camaro

67,940

10.60%

72,705

9.87%

77,502

10.11%

86,297

9.80%

Caprice

693

0.11%

1,021

0.14%

1,845

0.24%

3,727

0.42%

Corvette

25,079

3.91%

29,995

4.07%

33,329

4.35%

34,839

3.96%

Cruze

184,751

28.83%

188,876

25.64%

226,602

29.55%

273,060

31.01%

Impala

75,877

11.84%

97,006

13.17%

116,825

15.23%

140,280

15.93%

Malibu

185,857

29.00%

227,881

30.94%

194,854

25.41%

188,519

21.41%

Sonic

30,290

4.73%

55,255

7.50%

64,775

8.45%

93,518

10.62%

Spark

22,589

3.53%

35,511

4.82%

32,853

4.28%

39,159

4.45%

SS

4,055

0.63%

3,013

0.41%

2,895

0.38%

2,479

0.28%

Volt

20,349

3.18%

24,739

3.36%

15,393

2.01%

18,805

2.14%

Total Car

640,777 100.00%

736,581 100.00%

766,873 100.00%

880,683 100.00%

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

TRUCK

Avalanche

— 0.00%

— 0.00%

8

0.00%

92

0.01%

Captiva Sport

— 0.00%

2

0.00%

55

0.00%

35,368

3.07%

City Express

8,348

0.59%

7,019

0.52%

10,283

0.76%

530

0.05%

Colorado

112,996

7.93%

108,725

7.99%

84,430

6.22%

8,003

0.69%

Equinox

290,458

20.38%

242,195

17.81%

277,589

20.43%

242,242

21.01%

Express van

69,164

4.85%

68,007

5.00%

63,382

4.67%

79,352

6.88%

Silverado

585,864

41.11%

574,876

42.27%

600,544

44.21%

529,755

45.96%

Suburban

56,516

3.97%

60,082

4.42%

50,866

3.74%

55,009

4.77%

Tahoe

98,961

6.94%

103,306

7.60%

88,342

6.50%

97,726

8.48%

Traverse

123,506

8.67%

116,701

8.58%

119,945

8.83%

103,943

9.02%

Trax

79,289

5.56%

79,016

5.81%

63,030

4.64%

739

0.06%

Total Truck

1,425,102 100.00% 1,359,929 100.00% 1,358,474 100.00% 1,152,759 100.00%

Total Sales (Units)

2,065,879

2,096,510

2,125,347

2,033,442

Source: Automotive News

9

Chevrolet Analysis

M&A ACTIVITY OVERVIEW OVERALL TRANSACTION ACTIVITY FIAT CHRYSLER ANALYSIS

2017

CHARGER MOST POPULAR CAR BY SALES

RAM PICKUP MOST POPULAR TRUCK BY SALES

Typical Chrysler dealerships have the Chrysler, Dodge and Jeep franchise and occasionally include the Ram franchise. As a result, these brands have been grouped together for our analysis. Of the consolidated group, the Jeep brand holds the largest share, representing 41.0% of the total group’s sales. Jeep’s leading vehicle is the Grand Cherokee, recording over 240,000 units sold in 2017 representing over 29.0% of Jeep sales and nearly 12.0% of the group’s total. Following Jeep is Ram, representing 28.0% of the group’s total sales. Ram sales are primarily made up of pickup models. Ram pickup sales surpassed 500,000 units in 2017 representing nearly 90.0% of all Ram sales and nearly 25.0% of the group’s total sales. The Dodge brand recorded nearly 450,000 unit sales and made up 22.0% of the group’s total sales, while Chrysler sold just below 190,000 units and made up less than 10.0% of the group’s sales.

FIAT CHRYSLER’S MARKET SHARE OF TOTAL SALES 25% 0% 11.6%

FIAT CHRYSLER’S CARS VS. TRUCKS SOLD (%) 0% 100% 11.5% 88.5%

FIAT CHRYSLER’S UNIT SALE TRENDS

1,787,590

233,263

2,020,853

2017

1,896,575

314,482

2,211,057

2016

1,719,410

481,424

2,200,834

2015

2,044,427

452,778

1,591,649

2014

0

1M

3M

2M

TOTAL TRUCK UNITS

TOTAL CAR UNITS

10

RubinBrown Dealership Stats 2018

Fiat Chrysler | U.S. Light-Vehicle Sales and Market Share by Nameplate

2017

2016

2015

2014

UNITS SOLD

% OF UNIT SALES

UNITS SOLD

% OF UNIT SALES

UNITS SOLD

% OF UNIT SALES

UNITS SOLD

% OF UNIT SALES

200

18,457

26.48%

57,294

51.83%

177,889

77.01%

117,363

68.74%

300

51,237

73.52%

53,241

48.17%

53,109

22.99%

53,382

31.26%

Total Chrysler Car

69,694

100.00%

110,535

100.00%

230,998

100.00%

170,745

100.00%

Pacifica

118,274

99.51%

62,366

51.36%

— 0.00%

— 0.00%

Town & Country

577

0.49%

59,071

48.64%

93,848

100.00%

138,040

100.00%

Total Chrysler Truck

118,851

100.00%

121,437

100.00%

93,848

100.00%

138,040

100.00%

Total Chrysler

188,545

231,972

324,846

308,785

UNITS SOLD

% OF UNIT SALES

UNITS SOLD

% OF UNIT SALES

UNITS SOLD

% OF UNIT SALES

UNITS SOLD

% OF UNIT SALES

DODGE

Avenger

14

0.01%

45

0.02%

1,268

0.51%

51,705

18.33%

Challenger

64,537

39.46%

64,433

31.59%

66,365

26.50%

51,611

18.30%

Charger

88,351

54.01%

95,437

46.80%

94,725

37.83%

94,099

33.36%

Dart

10,082

6.16%

43,402

21.28%

87,392

34.90%

83,858

29.73%

Viper

585

0.36%

630

0.31%

676

0.27%

760

0.27%

Total Dodge Car

163,569

100.00%

203,947

100.00%

250,426

100.00%

282,033

100.00%

Grand Caravan

125,196

44.17%

127,678

42.15%

97,141

36.42%

134,152

45.92%

Durango

68,761

24.26%

68,474

22.61%

64,186

24.06%

64,398

22.04%

Journey

89,470

31.57%

106,759

35.24%

105,400

39.52%

93,572

32.03%

Total Dodge Truck

283,427

100.00%

302,911

100.00%

266,727

100.00%

292,122

100.00%

Total Dodge

446,996

506,858

517,153

574,155

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

RAM

Cargo van

— 0.00%

21

0.00%

3,222

0.65%

11,311

2.41%

ProMaster

40,483

7.27%

40,440

7.41%

28,345

5.74%

18,039

3.85%

ProMaster City

15,584

2.80%

15,972

2.93%

11,124

2.25%

— 0.00%

Ram pickup

500,723

89.93%

489,418

89.66%

451,116

91.35%

439,789

93.74%

Total Ram (Truck)

556,790 100.00%

545,851 100.00%

493,807 100.00%

469,139 100.00%

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

JEEP

Cherokee

169,882

20.50%

199,736

21.56%

220,260

25.46%

178,508

25.78%

Compass

83,253

10.05%

94,061

10.15%

66,698

7.71%

61,264

8.85%

Grand Cherokee

240,696

29.05%

212,273

22.91%

195,958

22.65%

183,786

26.55%

Patriot

40,735

4.92%

121,926

13.16%

118,464

13.69%

93,462

13.50%

Renegade

103,434

12.48%

106,606

11.51%

60,946

7.05%

— 0.00%

Wrangler

190,522

23.00%

191,774

20.70%

202,702

23.43%

175,328

25.32%

Total Jeep (Truck)

828,522 100.00%

926,376 100.00%

865,028 100.00%

692,348 100.00%

Total Sales (Units)

2,020,853

2,211,057

2,200,834

2,044,427

Source: Automotive News

11

Fiat Chrysler Analysis

M&A ACTIVITY OVERVIEW OVERALL TRANSACTION ACTIVITY FORD NALYS S

2017

FUSION

MOST POPULAR CAR BY SALES

F-SERIES MOST POPULAR TRUCK BY SALES

Of Ford’s nearly 2.5 million unit sales in 2017, truck sales accounted for more than 1.9 million units or 77.0% of Ford’s total sales. Of those units, nearly 900,000 were F-Series trucks, making up 47.0% of all Ford truck sales and over 36.0% of total Ford sales. In 2017, Ford sold nearly 38.0% more F-Series trucks than its entire car fleet. The remaining truck sales are Escape and Explorer models, representing 16.0% and 14.0% of Ford’s total truck sales respectively. Ford’s most popular car model is the Fusion, selling just over 200,000 units, making up nearly 38.0% of total car sales. It’s worth noting the number of Fusions sold is less than a quarter of the number of F-Series trucks sold.

14.1%

0%

25%

FORD’S MARKET SHARE OF TOTAL SALES

100% 22.5% 77.5%

0%

FORD’S CARS VS. TRUCKS SOLD (%)

FORD

FORD’S UNIT SALE TRENDS

1,908,203

555,838

2,464,041

2017

1,834,187

653,300

2,487,487

2016

1,741,816

760,039

2,501,855

2015

2,376,841

1,614,296

762,545

2014

0

1M

3M

2M

TOTAL TRUCK UNITS

TOTAL CAR UNITS

12

RubinBrown Dealership Stats 2018

Ford | U.S. Light-Vehicle Sales and Market Share by Nameplate

2017

2016

2015

2014

UNITS SOLD

% OF CAR SALES

UNITS SOLD

% OF CAR SALES

UNITS SOLD

% OF CAR SALES

UNITS SOLD

% OF CAR SALES

CAR

C-Max

18,390

3.31%

19,834

3.04%

21,768

2.86%

27,595

3.62%

Fiesta

46,249

8.32%

48,807

7.47%

64,458

8.48%

63,192

8.29%

Focus

158,385

28.49%

168,789

25.84%

202,478

26.64%

219,634

28.80%

Fusion

209,623

37.71%

265,840

40.69%

300,170

39.49%

306,860

40.24%

GT

89

0.02%

— 0.00%

— 0.00%

— 0.00%

Mustang

81,866

14.73%

105,932

16.21%

122,349

16.10%

82,635

10.84%

Taurus

41,236

7.42%

44,098

6.75%

48,816

6.42%

62,629

8.21%

Total Car

555,838 100.00%

653,300 100.00%

760,039 100.00%

762,545 100.00%

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

TRUCK

E-series/Club Wagon

— 0.00%

— 0.00%

247

0.01%

14,367

0.89%

E-series van

53,304

2.79%

54,245

2.96%

50,541

2.90%

88,896

5.51%

Edge

142,603

7.47%

134,588

7.34%

124,120

7.13%

108,864

6.74%

Escape

308,296 16.16%

307,069

16.74%

306,492

17.60%

306,212

18.97%

Expedition

51,883

2.72%

59,835

3.26%

41,443

2.38%

44,632

2.76%

Explorer

271,131

14.21%

248,507

13.55%

249,251

14.31%

209,994

13.01%

F series

896,764

47.00%

820,799

44.75%

780,354

44.80%

753,851

46.70%

Flex

22,389

1.17%

22,668

1.24%

19,570

1.12%

23,822

1.48%

Transit

127,360

6.67%

143,244

7.81%

117,577

6.75%

20,448

1.27%

Transit Connect

34,473

1.81%

43,232

2.36%

52,221

3.00%

43,210

2.68%

Total Truck

1,908,203

100.00%

1,834,187

100.00%

1,741,816

100.00%

1,614,296

100.00%

Total Sales (Units)

2,464,041

2,487,487

2,501,855

2,376,841

Source: Automotive News

13

Ford Analysis

M&A ACTIVITY OVERVIEW OVERALL TRANSACTION ACTIVITY TOYOT ANALYSIS

2017

CAMRY

MOST POPULAR CAR BY SALES

RAV4

Toyota continues to be one of the only manufacturers with a balanced blend between car and truck sales. Toyota’s cars make up nearly 43.0% of sales while trucks make up 57.0% of sales. This is worth noting when Ford’s sales are 77.0% trucks and Chevrolet’s sales are 69.0% trucks. Toyota’s top selling unit for 2017 is the RAV4, making up 19.0% of Toyota’s total sales and nearly 34.0% of Toyota’s truck sales. Toyota’s second most popular model is the Camry, which represents 18.0% of Toyota’s total sales and nearly 43.0% of all car sales. Not only does Toyota have a good mix between cars and trucks, it has an equal spread of sales amongst its entire fleet of vehicles.

MOST POPULAR TRUCK BY SALES

TOYOTA’S MARKET SHARE OF TOTAL SALES 25% 0% 12.2%

100% 42.8% 57.2%

0%

TOYOTA’S CARS VS. TRUCKS SOLD (%)

TOYOTA

TOYOTA’S UNIT SALE TRENDS

1,218,578

910,600

2,129,178

2017

1,106,899

999,475

2,106,374

2016

1,022,799

1,075,746

2,098,545

2015

2,004,373

918,449

1,085,924

2014

0

3M

1M

2M

TOTAL TRUCK UNITS

TOTAL CAR UNITS

14

RubinBrown Dealership Stats 2018

Toyota | U.S. Light-Vehicle Sales and Market Share by Nameplate

2017

2016

2015

2014

UNITS SOLD

% OF CAR SALES

UNITS SOLD

% OF CAR SALES

UNITS SOLD

% OF CAR SALES

UNITS SOLD

% OF CAR SALES

CAR

86 (Incl. FR-S)

6,846

0.75%

7,457

0.75%

—

0.00%

—

0.00%

Avalon

32,583

3.58%

48,080

4.81%

60,063

5.58%

67,183

6.19%

Camry

387,081

42.51%

388,618

38.88%

429,355

39.91%

428,606

39.47%

Corolla

329,196

36.15%

378,210

36.35%

363,332

33.77%

339,498

31.26%

Mirai

1,838

0.20%

1,034

0.10%

72

0.01%

—

0.00%

Prius

108,662

11.93%

136,632

13.67%

184,794

17.18%

207,372

19.10%

Venza

14

0.00%

589

0.06%

21,351

1.98%

29,991

2.76%

Yaris

44,380

4.87%

38,855

3.89%

16,779

1.56%

13,274

1.22%

Total Car

910,600 100.00%

999,475 100.00% 1,075,746 100.00% 1,085,924 100.00%

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

UNITS SOLD

% OF TRUCK SALES

TRUCK

4Runner

128,296

10.53%

111,970

10.12%

97,034

9.49%

76,906

8.37%

C-HR

25,755

2.11%

—

0.00%

—

0.00%

—

0.00%

FJ Cruiser

4

0.00%

9

0.00%

229

0.02%

14,718

1.60%

Highlander

215,775

17.71%

191,379

17.29%

158,915

15.54%

146,127

15.91%

Land Cruiser

3,100

0.25%

3,705

0.33%

2,687

0.26%

3,158

0.34%

RAV4

407,594

33.45%

352,154

31.81%

315,412

30.84%

267,698

29.15%

Sequoia

12,156

1.00%

12,771

1.15%

12,583

1.23%

11,806

1.29%

Sienna

111,489

9.15%

127,791

11.54%

137,497

13.44%

124,502

13.56%

Tacoma

198,124

16.26%

191,631

17.31%

179,562

17.56%

155,041

16.88%

Tundra

116,285

9.54%

115,489

10.43%

118,880

11.62%

118,493

12.90%

Total Truck

1,218,578 100.00% 1,106,899 100.00% 1,022,799 100.00%

918,449 100.00%

Total Sales (Units)

2,129,178

2,106,374

2,098,545

2,004,373

Source: Automotive News

15

Toyota Analysis

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16

RubinBrown Dealership Stats 2018

To stay current on issues involving the automotive industry, members of the Transportation & Dealerships Services Group regularly attend conferences and industry functions hosted by the following organizations: · ADOMA (Auto Dealer Office Manager Association) · CADA (Colorado Auto Dealers Association)

John Butler, CPA, CGMA Partner—In—Charge 314.290.3333 john.butler@rubinbrown.com

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