Group 1 Automotive Stock

Group 1 Automotive, Inc. operates in the automotive retail industry.

The company, through its omni-channel platform, the company sells and/or leases new and used cars and light trucks; arrange related vehicle financing; sell service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts retail and wholesale. The company has operations in geographically diverse markets that extend across 17 states in the U.S. and 34 towns and cities in the U.K. As of December 31, 2023, the company’s retail network consisted of 144 dealerships and 28 collision centers in the U.S. and 55 dealerships and 13 collision centers in the U.K.

Dealership Operations

The company’s new vehicle revenues include new vehicle sales and lease transactions, completed at its dealerships or via its digital platform, AcceleRide. The company sells retail used vehicles directly to its customers at its dealerships and via AcceleRide and wholesale its used vehicles at third party auctions. The company sells replacement parts and provides both warranty and non-warranty maintenance and repair services at each of its franchised dealerships, as well as provides collision repair services at the 41 collision centers that it operates. The company also sells parts to wholesale customers. Revenues from the company’s F&I operations consist primarily of fees for arranging financing and selling vehicle service and insurance contracts in connection with the retail sale of a new or used vehicle. The company offers a wide variety of third-party finance, vehicle service and insurance products.

Business Strategy

The company intends to execute its business strategy, underpinned by the following four key components, such as business growth through portfolio and operations optimization; leading customer experience; employer of choice; and OEM Partner of choice.

Seasonality

The company’s operating results are generally subject to seasonal variations, as well as changes in the economic environment. In the U.S., the company generally experiences higher volumes of vehicle sales and service in the second and third calendar quarters of each year (year ended December 31, 2023).

Regulation

Some of the more significant regulations that the company is required to comply with include the U.K.’s General Data Protection Regulation (U.K. GDPR) and, the California Consumer Privacy Act, as amended and enhanced effective January 1, 2023, by the California Privacy Rights Act (as so amended, the CCPA), and the Federal Trade Commission (FTC) Safeguards Rule.

In the U.S., most of the company’s dealerships utilize storage tanks that are subject to testing, containment, upgrading and removal regulations under the federal Resource Conservation and Recovery Act.

History

Group 1 Automotive, Inc., a Delaware corporation, was founded in 1995. The company was incorporated in 1995.