<br /> <br />Subaru dealers are facing a new set of questions after the automaker reported another decline in gross profit and margin in its August 5 earnings report. Over the same period, Kia and Hyundai each grew sales by 30% to 40%, closing the gap with a brand that once ranked just behind Toyota and Honda among import dealers’ most sought-after franchises. Although that isolation mattered less a decade ago, before Subaru competed directly with Hyundai and Kia, today, that local density and scale carry more weight, and an isolated Subaru store can struggle against larger, better-positioned groups nearby. With that cost layered on, dealers in that position are either expanding around the isolated store or selling it while valuations are strong. “If you’re a Subaru dealer, especially one that’s operating an outlier, this is a pretty good time to consider M&A,” Gordon said.