Freedom Automotive will buy Philips Volvo in Virginia Beach

Freedom Automotive, owner of Ford and Lincoln Mercury dealerships in Hampton Roads, has agreed to purchase Phillips Volvo in Virginia Beach.

Freedom will take over the Volvo dealership from Phillips Automotive Inc. on Feb. 1, said Scott Rigell, president of Freedom Automotive, which owns Freedom Ford in Norfolk and Freedom Lincoln Mercury in Chesapeake. He declined to disclose terms of the deal.

Phillips was looking to sell the Volvo brand to concentrate on its Mercedes-Benz and Land Rover franchises, Rigell said. He said he has known the Phillips family for 22 years and once worked at one of their dealerships.

"It's a great store, a profitable store," Rigell said of Phillips Volvo. He declined to provide sales figures.

Officials from Phillips did not return phone calls or e-mails Friday evening.

The local sale comes as Ford Motor Co. indicates it will begin to seek buyers for its Volvo brand and that it expects bids from Chinese auto manufacturers, according to a Bloomberg News report Friday, which cited unnamed sources familiar with Ford's plan. Ford is looking into selling Volvo as part of a "strategic evaluation" of the division, Ford spokesman Mark Truby told Bloomberg.

Rigell said he is unconcerned about Volvo changing hands. The name carries strong value and potential for growth that won't change with different ownership, he said.

"We're excited about the brand and where it's going," he said.

Freedom intends to keep the Volvo showroom at its current location at 4980 Virginia Beach Blvd., between Witchduck Road and Independence Boulevard. Freedom also will retain the staff of about 35 employees, Rigell said. It plans to spruce up the customer lounge and make other improvements.

"We're certainly going to do a major freshening, we call it, of the facility," Rigell said.
http://hamptonroads.com/2009/01/freedom-automotive-will-buy-philips-volvo-virginia-beach