8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 ____________________________________

FORM 8-K

 ____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 29, 2020

____________________________________

SONIC AUTOMOTIVE, INC.

(Exact name of registrant as specified in its charter)

 ____________________________________

Delaware

(State or other jurisdiction

of incorporation)

1-13395	56-2010790
(Commission File Number)	(IRS Employer Identification No.)

	4401 Colwick Road
	Charlotte,	North Carolina	28211
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (704) 566-2400

Not Applicable

(Former name or former address, if changed since last report.)

 ____________________________________ 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share	SAH	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 7.01. Regulation FD Disclosure.

On September 29, 2020, Sonic Automotive, Inc. issued a press release announcing the expansion of the Charlotte EchoPark location (the “Press Release”). A copy of the Press Release is attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit   No.	Description
99.1	Press Release of Sonic Automotive, Inc., dated September 29, 2020.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SONIC AUTOMOTIVE, INC.
September 29, 2020	By:	/s/ STEPHEN K. COSS
		Stephen K. Coss
		Senior Vice President and General Counsel

EX-99.1

Exhibit 99.1

Sonic Automotive Continues EchoPark Expansion with Land Acquisition in Charlotte, North Carolina

CHARLOTTE, N.C. – September 29, 2020 - Sonic Automotive, Inc. (“Sonic” or the “Company”) (NYSE:SAH), a Fortune 500 Company and one of the nation’s largest automotive retailers, today announced it has purchased approximately four acres of land directly adjacent to the Company’s Charlotte, North Carolina, EchoPark retail hub location. The expanded property will accommodate approximately 400 additional inventory parking spaces, bringing the total inventory capacity at the Charlotte EchoPark retail hub location to approximately 1,000 vehicles.

David Smith, Sonic Automotive’s and EchoPark Automotive’s Chief Executive Officer, commented, “Our continued investment in our Charlotte EchoPark location reflects the increasing customer demand we’re seeing in the metro area and neighboring markets. Our Charlotte retail hub will continue to play a key role as we expand our EchoPark footprint throughout the region with the opening of additional EchoPark delivery and buy centers in the near future, which will enable consumers in new markets to experience the price, quality and convenience the EchoPark brand has to offer.”

“Our Charlotte EchoPark retail hub averages over 500 1-4 year old pre-owned vehicle sales per month,” said Jeff Dyke, President of Sonic Automotive and EchoPark Automotive. “With this type of customer demand and the opening of our first delivery and buy center in Greenville, South Carolina, we knew we had to expand our capacity to support the growing EchoPark brand in the Carolinas. Our Charlotte EchoPark location will supply inventory for sale through our delivery and buy centers in nearby states, which offer our guests a modern e-commerce buying experience at EchoPark.com as part of our growing 140-point nationwide distribution network.”

Located at 3648 East Independence Boulevard, the Charlotte, North Carolina, EchoPark store opened in October 2018, one of the Company’s earliest EchoPark locations, with approximately 1,500 vehicle sales in the second quarter of 2020. Overall, EchoPark saw retail used vehicle sales volume of 13,207 units in the second quarter of 2020 and is on pace to retail over 61,000 pre-owned vehicles in 2020.

Launched in the fall of 2014, EchoPark has been well-received for offering a revolutionary customer experience at its existing locations in California, Colorado, Florida, North Carolina, South Carolina and Texas. The EchoPark business model sells nearly new vehicles at 20-40% below new car price, providing a selection of quality late model, low-mileage vehicles with clean CarFax vehicle history reports.

About EchoPark Automotive

EchoPark Automotive is a growing operating segment within the Company that specializes in pre-owned vehicle sales and provides a unique guest experience unlike traditional used car stores. More information about EchoPark Automotive can be found at www.echopark.com.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is one of the nation’s largest automotive retailers. Sonic can be reached on the web atwww.sonicautomotive.com.

Forward-Looking Statements

Included herein are forward-looking statements, including statements regarding anticipated future growth in our EchoPark segment and anticipated EchoPark used vehicle retail volume. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate

and timing of overall economic expansion or contraction, the effect of the COVID-19 pandemic and related government-imposed restrictions on operations, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and other reports and information filed with the Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC.

Company Contacts

Investor Inquiries:

Heath Byrd, Executive Vice President and Chief Financial Officer (704) 566-2400

Danny Wieland, Investor Relations (704) 927-3462

ir@sonicautomotive.com

Press Inquiries:

Danielle DeVoren / Anthony Feldman

212-896-1272 / 347-487-6194

ddevoren@kcsa.com/afeldman@kcsa.com

XML

Document	Sep. 29, 2020
Cover [Abstract]
Document Type	8-K
Document Period End Date	Sep. 29, 2020
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Class A Common Stock, par value $0.01 per share
Entity File Number	1-13395
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	56-2010790
Entity Address, Address Line One	4401 Colwick Road
Entity Address, City or Town	Charlotte,
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28211
City Area Code	(704)
Local Phone Number	566-2400
Pre-commencement Issuer Tender Offer	false
Trading Symbol	SAH
Security Exchange Name	NYSE
Amendment Flag	false
Entity Central Index Key	0001043509
Entity Registrant Name	SONIC AUTOMOTIVE, INC.