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Here are 1-2 brief analogies for Group 1 Automotive:

• Think of Group 1 Automotive as **CarMax, but for both new and used vehicles across many different brands.**
• It's like **the Best Buy for automobiles, offering sales, service, and parts for a multitude of brands at physical dealerships.**

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• New Vehicle Sales: Retail sale of new cars, trucks, and SUVs from various automotive brands.
• Used Vehicle Sales: Retail sale of pre-owned cars, trucks, and SUVs.
• Parts and Service: Providing vehicle maintenance, repair services, and selling genuine automotive parts.
• Financing and Insurance: Offering vehicle financing, leasing options, and selling extended service contracts and insurance products.

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Group 1 Automotive (GPI)

Group 1 Automotive (GPI) is a leading automotive retailer. As such, it sells vehicles, parts, and services primarily to individual consumers rather than other companies. Therefore, its major "customers" are categories of individuals.

The company serves the following primary categories of individual customers:

• New Vehicle Buyers: Individuals and families who purchase brand-new cars, trucks, and SUVs from the diverse range of manufacturers represented by Group 1 Automotive's dealerships. These customers are often seeking the latest models, advanced features, manufacturer warranties, and new vehicle financing options.
• Used Vehicle Buyers: Individuals and families who purchase pre-owned vehicles. This category includes customers looking for value, specific models (including certified pre-owned options), or vehicles within a particular budget range.
• Service & Parts Customers: Vehicle owners who utilize Group 1 Automotive's service departments for maintenance, repairs, collision services, and the purchase of genuine parts and accessories. This category includes both customers who originally purchased their vehicles from GPI and those who did not.

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• Toyota Motor Corporation (Symbol: TM)
• Honda Motor Co., Ltd. (Symbol: HMC)
• Ford Motor Company (Symbol: F)
• General Motors Company (Symbol: GM)
• Volkswagen AG (Symbol: VWAGY)
• Mercedes-Benz Group AG (Symbol: MBGAF)
• BMW AG (Symbol: BMWYY)
• Stellantis N.V. (Symbol: STLA)
• Hyundai Motor Company (Symbol: HYMLY)
• Nissan Motor Co., Ltd. (Symbol: NSANY)
• Subaru Corporation (Symbol: FUJHY)

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Daryl Kenningham, President and Chief Executive Officer

Daryl Kenningham has served as Group 1 Automotive's Chief Executive Officer since January 2023 and as President and a director since August 2022. He previously held roles as Chief Operating Officer, President of U.S. Operations, and Regional Vice President within Group 1. Before joining Group 1 in 2011, Kenningham was the Chief Operating Officer of Ascent Automotive in Houston. From 1998 to 2011, he held various senior executive positions at the Friedkin Companies, including Senior Vice President of Gulf States Toyota, President of Gulf States Financial Services, and President at USA Logistics. He began his career in 1988 with Nissan Motor Corporation, where he held various sales, marketing, finance, and automotive-logistics roles in the U.S. and Japan.

Daniel McHenry, Senior Vice President and Chief Financial Officer

Daniel McHenry was appointed Senior Vice President and Chief Financial Officer of Group 1 Automotive in August 2020. Prior to this, he served as Group 1's UK Finance Director since 2007. McHenry joined Group 1 in 2007 as part of the acquisition of Chandlers BMW in southern England, marking Group 1's initial venture into the UK market. Before entering the automotive retail business, he gained five years of experience with KPMG in the UK.

Pete DeLongchamps, Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs

Pete DeLongchamps has served as Group 1's Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs since December 2017, having joined Group 1 in 2004. He began his automotive retailing career in 1980. Immediately prior to joining Group 1, he was President of Advantage BMW, a Houston-based automotive retailer, which was later acquired by Group 1 Automotive. His prior experience includes serving as District Manager for General Motors Corporation and Regional Operations Manager for BMW of North America. From 1997 to 2004, DeLongchamps was the COO/Dealer Principal at Auto management- Advantage/Momentum Motorcars.

Gillian Hobson, Senior Vice President, Chief Legal Officer and Corporate Secretary

Gillian Hobson was appointed Senior Vice President, Chief Legal Officer and Corporate Secretary in January 2023. She joined Group 1 from Vinson & Elkins in Houston, where she was a member of the firm's management committee and served as Group 1's primary relationship attorney. During her 22-year tenure at Vinson & Elkins, she specialized in mergers and acquisitions/capital markets, representing both public and private companies in corporate transactions, capital-raising, securities law, and corporate governance.

Melkeya McDuffie, Senior Vice President and Chief Human Resources Officer

Melkeya McDuffie serves as Group 1 Automotive's Senior Vice President and Chief Human Resources Officer. Further details about her background were not readily available in the provided search results.

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The public company Group 1 Automotive (GPI) faces several key risks inherent to the automotive retail industry and its operational model.

1. Macroeconomic Conditions and Market Competition: Group 1 Automotive's financial performance is significantly exposed to macroeconomic factors such as economic downturns, changes in consumer confidence, and fluctuations in interest rates, which directly impact vehicle demand and pricing. The highly competitive nature of the automotive retail industry, with pressure from other large dealership groups, local dealerships, and emerging online retailers, can further squeeze profit margins and market share. Rising operating costs, including real estate, labor, and marketing expenses, also add pressure on dealership profitability. Analysts have noted increasing balance sheet leverage and declining profit margins for Group 1 Automotive and its peers, which could be exacerbated by adverse economic conditions.
2. Cybersecurity Threats and Data Breaches: Automotive dealerships, including Group 1 Automotive, collect and store a substantial amount of sensitive customer data, making them prime targets for cybercriminals. The company is vulnerable to various cybersecurity threats, such as data breaches, ransomware attacks, phishing scams, and malware. A significant number of dealerships have experienced cyberattacks, leading to negative effects on business operations, customer service, sales, and reputation. Furthermore, reliance on third-party service providers for dealership management systems, as exemplified by a significant system outage impacting operations in Q2 2024, introduces additional operational risk related to cybersecurity and data integrity.
3. Operational Risks Related to Inventory and Property: Due to the nature of their business, auto dealerships have valuable assets often displayed in open-access areas, making them susceptible to risks like vehicle theft, vandalism, and car component theft. Maintaining optimal inventory levels is also a critical operational risk; excess inventory can lead to increased holding costs and potential obsolescence, while insufficient inventory can result in lost sales. Additionally, dealerships face the risk of property damage to their inventory and physical structures from events such as severe weather, which can lead to substantial repair costs and business interruption.

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The following are clear emerging threats to Group 1 Automotive (GPI):

• Disintermediation by Manufacturers: The accelerating trend of automotive manufacturers, particularly new electric vehicle (EV) entrants and increasingly legacy original equipment manufacturers (OEMs) for their EV lines, adopting direct-to-consumer (DTC) or agency sales models. This bypasses the traditional franchised dealership model, threatening the core business relationship and revenue stream from new vehicle sales for Group 1 Automotive.

• Growth of Online Vehicle Retailers: The growing consumer preference for entirely online vehicle purchasing processes for both new and used cars, driven by specialized online retailers. This forces traditional dealerships to invest heavily in digital platforms while facing increased competition for convenience and price transparency, potentially shifting market share away from traditional brick-and-mortar operations.

• Erosion of Service Revenue from EVs: The long-term impact on dealership service department profitability from the widespread adoption of electric vehicles (EVs), which generally require less frequent and different types of maintenance compared to internal combustion engine (ICE) vehicles. This change could significantly erode a historically high-margin revenue stream crucial to dealership profitability.

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Addressable Markets for Group 1 Automotive's Main Products and Services:

United States

• New Car Sales: The U.S. new car market is estimated to reach 15.9 million units in 2025. Light vehicle sales in the U.S. were at a seasonally adjusted annualized rate of 17.27 million units in April 2025, and are projected to be around 15.50 million units by the end of the fourth quarter of 2025.
• Used Car Sales: The United States used car market was valued at approximately USD 322.01 billion in 2024 and is projected to grow to nearly USD 539.70 billion by 2034, at a Compound Annual Growth Rate (CAGR) of 5.30% from 2025 to 2034. In terms of units, the market reached 38.6 million units in 2025 and is estimated to reach 51.4 million units by 2034. Another report indicates the market size was estimated at USD 253.47 billion in 2024 and is expected to reach USD 591.12 billion by 2035.
• Automotive Maintenance, Repair Services, and Parts (Aftermarket): The U.S. automotive aftermarket industry, encompassing parts and accessories for light, medium, and heavy-duty vehicles, is projected to be nearly USD 535 billion in 2024 and is expected to reach around USD 574 billion in 2026. Specifically for automotive repair and maintenance services, the market was valued at USD 183.4 billion in 2023 and is estimated to grow at a CAGR of 10.1% between 2024 and 2032. The automotive aftermarket industry size was valued at USD 203.34 billion in 2023 and is expected to reach USD 298.78 billion by 2033.

United Kingdom

• New Car Sales: The overall new car market in the UK is anticipated to exceed two million units (2.012 million) in 2025 for the first time since 2019. UK passenger car sales saw a modest increase of 0.5% year-over-year in October 2025, with 144,948 units registered. Year-to-date sales up to October 2025 show 1,723,120 cars registered, a 3.9% increase.
• Used Car Sales: The UK used car market generated a revenue of USD 81,451.7 million in 2024 and is projected to reach USD 109,984.8 million by 2030, with a CAGR of 5% from 2025 to 2030. Another valuation places the UK used car market at USD 103.89 billion in 2025, expected to reach USD 186.10 billion by 2030, advancing at a 12.15% CAGR. The market is also expected to generate approximately GBP 273 billion by 2026.
• Automotive Maintenance, Repair Services, and Parts: Specific addressable market sizes for automotive maintenance, repair services, and parts in the UK were not identified as separate figures in the provided search results.

Brazil

• New Car Sales: Total vehicle sales in Brazil, including trucks and buses, amounted to 2.63 million vehicles in 2024. Projections for 2025 indicate an 8.4% increase in light vehicle production, reaching 2.58 million units. Brazilian vehicle sales increased by 16.2% year-over-year to 225,710 units in May 2025. The new passenger vehicle sales in Brazil reached 1.9 million units in 2024 and are forecast to grow by 8.4% in 2025.
• Used Car Sales: The Brazil used car market generated a revenue of USD 72,974.2 million in 2024 and is expected to reach USD 116,893.6 million by 2030, with a CAGR of 8.1% from 2025 to 2030. Another report indicates a market value of USD 58.37 billion in 2024, projected to grow at a CAGR of 7.76% from 2024 to 2032. The market was estimated at USD 157.79 billion in 2025, with an expectation to reach USD 191.97 billion by 2030.
• Automotive Maintenance, Repair Services, and Parts (Aftermarket): The Brazil automotive aftermarket market generated a revenue of USD 34,451.4 million in 2023 and is expected to reach USD 46,156.1 million by 2030, growing at a CAGR of 4.3% from 2024 to 2030. The Brazil auto parts and accessories market size was USD 21.58 billion in 2023 and is projected to reach USD 29.31 billion by 2032. The total Brazil Auto Parts Market is expected to be valued at USD 24.5 billion in 2024, with the aftermarket segment accounting for USD 14.7 billion of this.

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Group 1 Automotive (GPI) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Growth in Parts and Service Revenue: Group 1 Automotive has consistently demonstrated strong performance in its parts and service segments, which are described as a high-margin business and an important stabilizing factor for the company. The company has seen record quarterly parts and service revenues and gross profit, with an 11.2% and 11.1% increase respectively over the comparable prior-year quarter in Q3 2025. Management is focused on expanding this area, including increasing technician headcount in the U.S. to capitalize on growing vehicle complexity and electrification.
2. Robust Used Vehicle Sales and F&I Performance: The company has reported strong performance in used vehicle sales, nearly achieving an all-time quarterly volume record in Q3 2025 and outpacing the industry in same-store sales. Furthermore, its Finance and Insurance (F&I) operations have been a significant contributor to gross profit, with an all-time quarterly high F&I per retail unit (PRU) of nearly $2,500 in the U.S. and a more than 15% year-over-year increase in the U.K. for Q3 2025.
3. Strategic Acquisitions: Group 1 Automotive has a proven history of expanding its revenue base through strategic acquisitions, having acquired $9.1 billion in revenues since the beginning of 2021. Recent examples include the acquisition of a Mercedes-Benz dealership in Georgia and the Inchcape UK deal, which is projected to add an additional $2.7 billion in annual revenue. The company's strong liquidity and leverage provide capacity for further mergers and acquisitions.
4. New Vehicle Sales Volume and Finance Penetration: The U.S. operations have shown strong performance in new vehicle sales, with mid-single-digit increases in new vehicle unit sales in Q3 2025 and Q2 2025. High new vehicle finance penetration, reaching 77% in Q3 2025, significantly contributes to the company's F&I revenue.
5. Operational Efficiencies and Restructuring Efforts: Group 1 Automotive is actively engaged in restructuring efforts, particularly within its U.K. operations, to optimize its portfolio and enhance profitability. These initiatives are expected to drive margin improvements. The company is also focused on maintaining operational discipline and cost management, with SG&A leverage below 66% on an as-reported and same-store basis in the U.S.

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Share Repurchases

• Group 1 Automotive has consistently engaged in share repurchases, with a new authorization of $500 million approved in November 2024.
• Year-to-date in 2024, the company repurchased 461,365 shares for a total of $138 million.
• In 2025, through May 19, Group 1 repurchased 401,649 shares totaling $167.3 million. The company also repurchased 0.7 million shares for $311 million during 2025. As of December 31, 2024, $476.1 million remained available under the share repurchase authorization.

Share Issuance

• In 2023, 2022, and 2021, Group 1 Automotive issued 112,189, 146,416, and 116,680 shares of common stock, respectively, to employees participating in the Purchase Plan.

Outbound Investments

• Group 1 Automotive acquired RRR Automotive Group in February 2024, including Toyota, Honda, Hyundai, and Kia dealerships, and three collision centers in the greater Baltimore/Washington DC market.
• In 2024, Group 1 acquired dealership operations with total expected annual revenues of approximately $3.9 billion.
• The company acquired three luxury dealerships in Florida and Texas in May 2025 (Lexus, Acura, Mercedes-Benz), expected to generate $330 million in annual revenues. Additionally, a business involving one Lexus and three Toyota dealerships in the U.K. was acquired in the first quarter of 2025.

Capital Expenditures

• Capital expenditures for Group 1 Automotive were $185.4 million in 2023, and are projected to be $245.1 million in 2024 and $353.5 million in 2025.
• The capital expenditures focus on extending the useful lives of current dealership facilities, starting or expanding operations, and are driven by dealership acquisition activity, new franchises, sales growth, relocations, or manufacturer imaging programs.
• The company is prioritizing investments in electric vehicles (EVs), facility upgrades, and technology to remain competitive in the retail automotive industry.