Baltimore-based Atlantic Automotive Corp., the area's largest automobile retailer, plans to add Towson-based Griffith Automotive Group to its network of dealerships and service shops, the companies said yesterday.

Atlantic, which will own 30 dealerships that encompass 17 brand names once the sale is finalized, has agreed to acquire Griffith's four dealerships -- Doug Griffith Chrysler Plymouth in Parkville, Griffith Auto Park in Westminster, Griffith Honda of Towson and Griffith Honda of York, Pa., for $32 million, plus inventory, Steve Griffith, president of Griffith Management Services, said yesterday.

Atlantic's companies include Heritage Automotive Group, Saturn Dealership Network, Herb Gordon Automotive Group, Allstate Leasing and Mr. Tire.

"It's a perfect fit in our plan to create a locally oriented model for consolidation," said Steven Fader, president and chief executive officer of Atlantic Automotive.

Atlantic has been growing through acquisition, most recently with the additions of Herb Gordon Automotive in September and Mr. Tire, which has 27 service centers in the Baltimore-Washington region, in October, Fader said.

Steve Griffith's father, Doug Griffith, started his auto business in 1962, opening Doug Griffith's Corvette Corner on Harford Road in Carney.

He established his first new-car franchise, a Chrysler Plymouth dealership, in 1967.

At its peak, the business operated eight dealership locations with 20 franchises. Steve Griffith took over as chief executive after his father's death in 1980.

"This was a good opportunity for the family to sell," Griffith said.

"It was a family decision based on the changes in the automotive business, the bigger players taking a larger market share and having greater economies of scale."

Besides heavy consolidation, other industry changes contributed to the family's decision, Griffith said.

Independent dealers have an uncertain future because of the growth of auto sales over the Internet and because some manufacturers, such as Ford and Saturn, have begun to sell directly to consumers, he said.

Griffith's contract with Atlantic Automotive guarantees that Griffith's 303 employees will have their jobs at the current rate of pay for six months after the sale becomes final, Griffith said.

No decision has been made regarding whether the Griffith name will be retained, Fader said.

Pub Date: 3/06/99