Company: GPI
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001031203-25-000029
Chunk: 66

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 2
Chunk 66
---
Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations  

Management’s Discussion and Analysis of Financial Condition and Results of Operations, should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements and the notes thereto, as well as our 2024 Form 10-K.  

Overview

We are a leading operator in the automotive retail industry. We sell or lease new and used cars and light trucks; arrange related vehicle financing; sell service and insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts retail and wholesale. We have operations in geographically diverse markets that extend across 17 states in the U.S. and 72 towns and cities in the U.K. As of March 31, 2025, our retail network consisted of 144 dealerships in the U.S. and 116 dealerships in the U.K.

Recent Events

On March 26, 2025, President Donald Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose a 25 percent tariff on imported automobiles and certain automobile parts. The 25 percent tariff on automobiles took effect on April 3, 2025, with the 25 percent tariff on automobile parts to begin no later than May 3, 2025. The 25 percent tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts and electrical components), with processes to expand tariffs on additional parts if necessary. Importers of automobiles under the United States-Mexico-Canada Agreement (“USMCA”) will be given the opportunity to certify the value of the automobile attributable to parts wholly obtained, produced entirely, or substantially transformed in the United States (“U.S. content”) and systems will be implemented such that the 25 percent tariff will only apply to the value of their non-U.S. content. USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to their non-U.S. content.  

On April 2, 2025, President Donald Trump signed an executive order on reciprocal tariffs, effective April 9, 2025, which declared a 10 percent baseline tax on imports from all countries, as well as higher rates for nations that run trade sur