HOUSTON — Group 1 Automotive, Inc., a Fortune 500 automotive retailer, announced the acquisition of David Taylor Cadillac Buick GMC in Houston and the opening of two new Volkswagen dealerships in the San Diego andBeaumont, Texas, market areas. In addition, Group 1 announced that it opened Sterling McCall Fiat in Houston. In total, the six franchises are expected to generate $188.0 million in estimated annual revenues.
David Taylor Cadillac Buick GMC, located on the Southwest Freeway, is expected to add about $110.0 million in estimated annual revenues and complements the 11 existing dealerships that Group 1 operates in the Houston-Metro market area.
The Volkswagen Kearny Mesa and Beaumont franchises were awarded to Group 1 by Volkswagen of America and represent new operating locations for Volkswagen in those markets. Volkswagen of Kearny Mesa in the San Diego area is scheduled to open later this week and Volkswagen of Beaumont, located east of Houston, is scheduled to open by the end of November. The company anticipates that these two dealerships will add approximately $73.0 million in estimated annual revenues.
In August, Group 1 opened Sterling McCall Fiat in Houston, which is expected to generate$5.0 million in estimated annual revenues.
The three awarded franchises will be located in existing facilities alongside current operations. The facilities will be modified to the manufacturer’s image requirements and will add at least 25 additional service bays to meet the demands of these growing brands.
“The addition of these six franchises demonstrates our ongoing efforts to grow our business while further diversifying our brand mix,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “We are especially excited about increasing our partnership with Volkswagen of America following our successful acquisition of Metro Volkswagen in the Dallasmarket earlier this year.”
About Group 1 Automotive, Inc.
Group 1 owns and operates 108 automotive dealerships, 140 franchises, and 27 collision centers in the United States and the United Kingdom that offer 31 brands of automobiles. Through its dealerships, the company sells new and used cars and light trucks; arranges related vehicle financing, service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Group 1 Automotive can be reached on the Internet at www.group1auto.com.
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