Company: GPI
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001031203-25-000013
Chunk: 49

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 1
Chunk 49
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 business. Disciplined inventory positioning, using our dealership clusters to best position used vehicles, allows us to drive the highest value.

5

Full Rooftop Potential

We seek to optimize our operations at each of our rooftops including leveraging our dealership’s full potential and local scale advantage to improve operational efficiency. This includes focusing on operational excellence at each dealership and other facilities, including, but not limited to, standardization of key common processes and taking advantage of shareable business resources. We believe our operations optimization efforts will provide a strategic advantage by structurally lowering our operating costs.

As innovative tools become available, we seek to quickly adopt those that provide a mutual benefit to our customers and Group 1. We want to replicate and grow our best practices across rooftops. Our scale amplifies the impact of replicating best practices and best practices lead to additional value extraction from existing stores and acquisition opportunities, which we believe to be a competitive advantage. We are prioritizing five areas for development in 2025.

F&I 

We are piloting programs that enhance the in-store and online F&I experience, allowing our customers to shop how they want, when they want, while improving the speed of service within our dealerships. In addition, we believe we can extract further value from our top F&I performers by better managing their customer workflow, coupled with the assistance of virtual-based technology enhancements. 

Procurement

We believe our scale provides us an advantage in the form of leverage to further improve our dealership costs. We continue to negotiate discounts, service level improvements and preferential pricing from suppliers to our dealerships through providers who can service multiple locations across more than one geographic market. We also routinely evaluate dealership processes with the purpose of identifying best practices which can be shared amongst our dealership operations.

Used Vehicle Purchasing and Transfers

Used vehicle profits are dependent on sourcing and our ability to fairly value the purchases we make. We have invested heavily in the technologies and processes we use to value used vehicle inventory. We have partnered with service providers to enable us to generate the most competitive market pricing available, across our dealership network.

We sell multiple brands in most markets in which we operate through our franchised dealer network. We have thousands of customers enter our stores daily. We have invested in the people and processes at many of our stores to enable used vehicle sourcing directly from the service drive. As a result, we are able to offer many of our customers a value for their car at every service visit, leading to significant organic sourcing. We are perfecting these