About Jay Leasing Inc

Group 1 Automotive is the third largest of a group of new and used car retailers (behind #1 AutoNation and #2 Penske Automotive Group) striving to consolidate US auto sales. The company owns more than 155 dealerships, around 210 franchises, and about 35 collision service centers, , operating under their own branding, in the US, UK and Brazil. The US is the biggest market, and the company is present in 14 US states. Group 1 sells more than 30 car and light truck brands, of which Toyota, BMW and Ford are the biggest sellers. It also offers financing, provides maintenance and repair services, and sells replacement parts.

Operations

Group 1 Automotive's operations include five core business segments: New Vehicles (around 55% of sales), Used Vehicles (25%), Parts & Service (10%), Used Vehicles wholesale (5%), and Finance & Insurance (5%). In the UK the auto dealer operates through its subsidiary Group 1 Automotive UK Ltd.

Geographic Reach

The auto dealer rings up about 80% of its sales in the US; the remainder comes from the UK (15%) and Brazil (5%). More than half of Group 1's dealerships are located in Texas, Oklahoma, and California. In the UK, Group 1 Automotive has about 40 franchises, 30 dealerships and nearly 10 collision centers; and in Brazil, nearly 25 franchises, 20 dealerships, and one collision center.

The company's US operations are located primarily major metropolitan areas. It is present 20 towns and cities in the UK, and has a presence in Brazil in key metropolitan areas in the states of Sao Paulo, Parana and Mato Grosso do Sul.

Financial Performance

Group 1's recent strong revenue growth continued in fiscal 2016, albeit at a slower pace than previously, increasing 2% to $10.9 billion. Growth in the UK new car market relating to acquisitions and overall market strength was partially offset by new car declines in the US and Brazil. Weakness in the US was concentrated in Group 1's significant Houston market as the oil city's workers have reduced their spending as the industry-wide squeeze continued. Used car sales rose 5% due to good performance in the US and UK. The Parts & Services business also grew.

Net income ticked up 56% to $147 million due mostly to higher net sales.

Cash from operations climbed 172% to $384.9 million due to higher net income, and an increase in accounts payable and inventories.

Strategy

Group 1 is looking to capitalize on growth opportunities in the UK (where it already has an established presence) and in Brazil, a relatively new market for the company. It acquired 12 dealerships and opened two additional dealerships in the UK in fiscal 2016. The company's strategy also includes growing its higher margin parts and services business, growing its share of the new and used vehicle market, taking advantage of its size to boost efficiency, and continuing to make strategic acquisitions. In recent years Group 1 has seen import and luxury brands account for an increased share of its business.

Mergers and Acquisitions

In 2016, Group 1 acquired London-based Spire Automotive Group's twelve dealerships, including four Audi dealerships and three BMW/MINI dealerships, which will continue to use the Spire brand name. The acquired dealerships are expected to bring in approximately $575 million per year. The acquisition could also further Group 1's relationships with BMW and the Volkswagen Group in the UK.

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Jay Leasing Inc

1661 Whittlesey Rd
Columbus, GA 31904-3645
Phone: 1 (706) 324-1234

Stats

  • Employer Type: Public
  • Employees: 5

Major Office Locations

  • Columbus, GA
  • Fortson, GA