EDMONTON, March 31, 2014 /PRNewswire/ – AutoCanada Inc. (“AutoCanada” or the
“Company”) (TSX: ACQ) announced today that it has obtained approval
from General Motors of Canada (“GM Canada”) to purchase an 80%
non-voting equity interest in the assets of McNaught Cadillac Buick GMC
(“McNaught”), a Cadillac Buick GMC dealership located in Winnipeg,
Manitoba. The acquisition is expected to close April 1, 2014.

McNaught Cadillac Buick GMC was founded by Mr. Gord McNaught Sr. nearly
four decades ago and is currently operated by his two sons, Mr. Gord
McNaught Jr. and Mr. Andrew McNaught, who will continue to operate the
dealership from its current leased facility which includes a 10 car
showroom, 24 service bays and 10 body shop bays. As part of the
purchase agreement terms, AutoCanada will purchase the dealership
facility on or before March 31, 2016. In 2013, the dealership retailed
593 new vehicles and 520 used vehicles.

In accordance with the terms of the previously announced ownership
structure for GM dealerships approved by GM Canada, AutoCanada shall
purchase an 80% non-voting equity interest. Mr. Pat Priestner, Chief
Executive Officer of AutoCanada, shall be named Dealer Operator, and,
together with other senior managers, shall purchase a 20% equity
interest, with Mr. Priestner holding 100% voting control of the
dealership. The transaction was reviewed and approved by AutoCanada’s
independent members of its Board of Directors.

Commenting on the transaction, Pat Priestner, Chairman and CEO of
AutoCanada stated, “We are very excited to add a fourth dealership to
our Winnipeg platform, a market which has proven to be very good for
auto retail. A new brand for us in Winnipeg and an additional
dealership allows us to continue to build scale in the city. We would
like to thank General Motors of Canada for its continued support of our
efforts to expand our offerings of these highly desirable brands which
we believe will continue to grow in market share. We would also like
to welcome the McNaught family, and all of the McNaught dealership
employees, to the AutoCanada family, with whom we look forward to
building a strong and lasting relationship.”

About AutoCanada

AutoCanada is one of Canada’s largest multi-location automobile
dealership groups, currently operating 34 franchised dealerships in
seven provinces and has over 1,600 employees. AutoCanada currently
sells Chrysler, Dodge, Jeep, Ram, Fiat, Chevrolet, GMC, Buick,
Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, and
Volkswagen branded vehicles. In 2013, our dealerships sold
approximately 36,000 vehicles and processed approximately 364,000
service and collision repair orders in our 381 service bays during that
time.

Additional information about AutoCanada Inc. is available at www.sedar.com and the Company’s website at www.autocan.ca.

Forward-Looking Statements

Certain statements contained in this press release are forward-looking
statements and information (collectively “forward-looking statements”),
within the meaning of the applicable Canadian securities legislation.
We hereby provide cautionary statements identifying important factors
that could cause our actual results to differ materially from those
projected in these forward-looking statements. Any statements that
express, or involve discussions as to, expectations, beliefs, plans,
objectives, assumptions or future events or performance are not
historical facts and are forward-looking and may involve estimates and
assumptions and are subject to risks, uncertainties and other factors
some of which are beyond our control and difficult to predict.
Accordingly, these factors could cause actual results or outcomes to
differ materially from those expressed in the forward-looking
statements. Therefore, any such forward-looking statements are
qualified in their entirety by reference to the factors discussed
throughout this release and as contained in the Company’s Annual
Information Form dated March 20, 2014 which is accessible through the
SEDAR website at www.sedar.com.

SOURCE AutoCanada Inc.