Group 1 Sees ‘Improving Market’

By Staff Writer June 29, 2020
Earl J. Hesterberg, Group 1’s president and chief executive officer Earl J. Hesterberg, Group 1’s president and chief executive officer

Group 1 Automotive Inc., an international, Fortune 500 automotive retailer, provided an operational update on its business for the second quarter 2020 and noted significantly improving market conditions and operating trends in May and June-to-date when compared to March and April, 2020.

All of the company’s U.S. automotive retail dealership sales and service operations have been open since early May, with the exception of a small number of temporary facility closures due to instances of specific COVID-19 cases.  Since that time, revenues for new vehicle sales and service have increased at a much faster rate than associated costs.  As a result, U.S. operating profits are improving much faster than anticipated.

“The faster-than-expected recovery of the U.S. auto market combined with our timely and aggressive cost cuts across all three of our operating markets and at our headquarters will enable us to report a better-than-expected financial quarter on an operating basis,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “Despite large revenue declines for the second quarter, we project new vehicle sales margin improvements and meaningful cost leverage to drive a significant level of corporate profitability.”

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Last modified on Monday, 29 June 2020 14:10

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