Group 1 Automotive to focus on cost control and efficiency ahead of major UK expansion

US retail giant Group 1 Automotive will remain focused on improving cost control and efficiency at its UK businesses ahead of adding Inchcape’s 54 dealerships to its portfolio.

In second-quarter financial results, the business posted total revenues of $4.7 billion, a 3% increase year-on-year, achieving a quarterly all-time record in terms of US new vehicle ($2 billion), parts and service ($497.4m), and finance and insurance ($183.9m) revenues. 

Despite challenges in the US including extreme weather events and a CDK outage which cost the business $17m, Group 1 said it remains intent on improving its performance in the UK.

Group 1 bought its first BMW and MINI dealerships in 2007 in the south of England, before steadily expanding northwards into East Anglia and the Home Counties.

The business which now owns more than 70 car dealerships in the UK was forced to reduce headcount by 300 people - around 10% - in the first quarter of this year in an effort to reduce costs.