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Corporate Profile
Houston-based Group 1 Automotive, Inc., a Fortune
500 automotive retailer, is a leading operator in the $1 trillion
automotive retailing industry. Since its initial public offering
in October 1997, Group 1 has grown to become one of the top five
dealership groups in the United States. The company has achieved
this success through the execution of a strategy that emphasizes
geographic and brand diversity, interrelated revenue streams, operational
efficiencies and the prudent deployment of capital.
Group 1 owns and operates 105 dealerships, 145
franchises and 27 collision service centers in the United States
and the United Kingdom that offer 32 brands of automobiles. Through
its dealerships, the company sells new and used cars and light trucks;
arranges related financing, vehicle service and insurance contracts;
provides maintenance and repair services; and sells replacement
parts.
Operating Strategy
Group 1's strategy is founded on standardized
practices to achieve operating efficiencies, industry-leading customer
service, disciplined acquisition growth and diversity in geographic
reach and brands marketed. The company's success is attributable
to our continued focus on customers, successful integration of acquisitions
and our flexible operating model.
Group 1 operates under a consolidated regional structure that allows us to leverage
our scale and standardize our processes to create operating efficiencies,
while keeping operational decision making close to the market.
For 2008, Group 1 plans to focus on its strategic
initiatives to become a best-in-class automotive retailer. These iniatives include:
- Managing through macro-economic shifts
- Completing the transition to an operating model
with greater commonality of key operating processes and systems
that support the extension of best practices and the leveraging
of scale.
- Continued cost reduction and operating efficiency
efforts.
- Increasing real estate ownership.
- Managing Used Vehicle business using technology
- Improving same-store results in Parts and Service and F&I businesses
- Improving or disposing of underperforming dealerships
Acquisitions
Group 1’s commitment to judiciously managing stockholders’
capital is reflected in its disciplined approach to making acquisitions
that will optimize our brand mix, expand geographic diversity and
achieve operating efficiencies. With 21,200 automobile dealerships
in the United States, there are ample opportunities to find attractive
acquisition candidates.
Group 1 owns and operates dealerships in the United
States and the United Kingdom. These dealerships offer 32 brands
of cars and light trucks a balance of import and domestic manufacturers.
In 2007, Toyota, Scion, and Lexus brands continued to be our top
sellers, accounting for 36 percent of total new vehicle unit sales,
followed by Ford, Nissan/Infiniti and Honda/Acura with 12 percent each. Import and luxury brands increased
to 75 percent of our mix during the year, with domestics declining
to 25 percent. This is a significant shift from 2005, when import
and luxury brands accounted for 62 percent and domestics 38 percent
of unit sales.
Outlook
Group 1 believes there are enormous growth
opportunities in the $1 trillion automotive retailing industry.
Our experienced management team will continue to execute our strategic
initiatives to improve operating efficiencies by standardizing processes,
while allowing our operators to manage their dealerships according
to their local marketplace.
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