Calif. dealers form chain. (FirstAmerica Automotive Inc.)

FirstAmerica seeks acquisitions in West

Three high-volume California auto dealers have formed a holding company to consolidate dealerships in the western United States.

The $28 million deal pools 18 franchises into a 13-store chain, called FirstAmerica Automotive Inc. The dealerships, in the San Diego and San Francisco areas, have combined annual revenue of about $560 million.

The company says it may create a common brand name for the stores.

The FirstAmerica merger represents a new twist in the dealership consolidation trend, which has slowed because of weak retail auto stock prices. The dealers, who started with nine dealerships of their own, …