Summary
Bay Area Auto Group acquired Power Chevrolet/GMC and Power Ford in Newport, Oregon, from the Koehnke family’s Power Auto Group, according to a Jan. 27 announcement from Pinnacle Mergers & Acquisitions, which advised the seller. The two coastal stores will join Bay Area Auto Group’s portfolio led by Hardeep Singh, Jay Dhillon and Doug Hildreth.
Key details
- Seller rationale: CEO Jeff Koehnke cited geography and the distance from the group’s Salem-area core as the reason to divest the Newport points, calling the buyers “an ideal fit.”
- Franchises involved: One General Motors point (Chevrolet/GMC) and one Ford point in the Newport market move to Bay Area Auto Group.
- Terms and timing: Financial terms and a closing timeline were not disclosed.
- Operations and approvals: No specific operational changes were outlined. The announcement did not indicate whether required manufacturer approvals or regulatory steps had been completed.
Context
The Koehnke family framed the sale as a portfolio realignment to focus on their Salem-area footprint. Consolidating around core markets is a common move for regional dealer groups seeking efficiencies in management, logistics and marketing, especially when outlying stores demand separate staffing and longer travel for leadership and support teams.
For the buyer, adding recognizable domestic brands in a single market can create local advantages in used-vehicle sourcing, reconditioning and F&I when processes are aligned across rooftops. Coastal markets like Newport blend resident demand with seasonal traffic, factors that can influence inventory mix and service throughput.
Implications for customers and staff
Ownership changes typically occur behind the scenes at first. Brand programs, warranties and day-to-day operations continue while new owners assess staffing, processes and vendor relationships. The announcement did not address staffing, rebranding, facility upgrades or back-office consolidation at the Newport stores.
Advisors
Pinnacle said President Mike Sims and Executive Vice President Wes Hamilton led the engagement for the Koehnke family. The firm emphasized a “relationship-first” approach and, in its materials, cited extensive transaction experience (claims include hundreds of deals nationwide and elsewhere more than 850 transactions with over $40 billion in proceeds).
What remains unknown
- Whether the stores will keep the Power name or be rebranded under Bay Area Auto Group.
- Specific integration steps, including potential facility upgrades or back-office consolidation.
- Manufacturer approval status and detailed closing timeline.
- Any performance metrics for the two stores.
