Post on 13-Jan-2016
GROUP AUTOMOTIVE INC
“Maximizing Human Capital Through Technology”
Automotive News World CongressJanuary 17, 2006
Group 1 Automotive, Inc.November 2005
2
Group 1 Automotive, Inc. Ranked 361 on Fortune 500 Top 10 dealer group with 94 dealerships across 12 states Revenue run rate of $6.1 billion Brand and geographic diversity
– 32 brands– 142 franchises
200,000(1)
retail vehicles sold
1.6 million(1)
vehicles serviced
8,900 employees
(1) Pro forma for closed acquisitions as of 9/30/05, annualized.
Group 1 Automotive, Inc.November 2005
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Brand Diversity
(1) % total GPI new vehicle retail sales, pro forma for closed acquisitions as of 9/30/05.(2) % total U.S. new vehicle retail sales.
(2)(1)
% Total New Vehicle Unit Sales(Nine Months 2005)
Group 1 Automotive, Inc.November 2005
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Revenue Growth HistoryRevenues
2000-4 Revenue CAGR = 11%
Group 1 Automotive, Inc.November 2005
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Prior Platforms
Group 1 Automotive, Inc.November 2005
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Current Regionalization
Group 1 Automotive, Inc.November 2005
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Industry Evolution Industry evolution
– Public companies start emerging in Europe around 1987
– Public companies start emerging in the US around 1997
Early vision– Huge, mega-brand dealerships– ‘Video rental’ type buying process– Large volume discounts
Group 1 Automotive, Inc.November 2005
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Progress Cost efficiencies Process standardizations Streamlined buying process
Group 1 Automotive, Inc.November 2005
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Differentiator Similarities
– Same vehicles / same prices– Manufacturer designated locations– Manufacturer designated imaging
Differentiator– PEOPLE
The Right Tools
Group 1 Automotive, Inc.November 2005
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Technology Empowerment Management
– Retain– Engage– Empower
Processes– Streamline– Efficiencies– Effectiveness– Controls
Group 1 Automotive, Inc.November 2005
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Used Vehicle Inventory
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2001 2002 2003 2004
(In
ven
tory
Va
lue
in th
ou
san
ds)
7,000
7,500
8,000
8,500
9,000
9,500
10,000
(Inve
nto
ry Un
its)
Inventory Value Inventory Units
GPI Used Vehicles
Group 1 Automotive, Inc.November 2005
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Used Vehicle Department Previous management tools
– Days in stock– Instinct– Experience
New management w/technology– Real-time data– Instant access to
historical data– Market database in
lieu of dealership database
Group 1 Automotive, Inc.November 2005
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Computer Management Systems Used vehicle computer management systems
– Strategic alliance with American Auto Exchange– Increase transparency– Increase controls– Organize and leverage decision-making process
Group 1 Automotive, Inc.November 2005
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Used Vehicle Transactions On a daily basis
– Sell several hundred new vehicles– Appraise a total of 700-800 trade-ins
One appraisal per minute of every 12 hour day
Group 1 Automotive, Inc.November 2005
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American Auto Exchange Provides daily inventory value monitoring
capability Monitors appraisal closing rates Identifies vehicles with a high retail sale
probability Provides inventory stocking guides based on
local market historical demand Enables dealerships to “see and sell from” the
inventory of other dealerships within a given geographic region
Group 1 Automotive, Inc.November 2005
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Parts & Service Actions
$360$402
$466
$410
$565
$488
$0
$100
$200
$300
$400
$500
$600
(in
mill
ion
s)
2001
2002
2003
2004
9 M
os 2
005
Productive Service Stall Count
0
500
1,000
1,500
2,000
2,500
3,000
Nu
mb
er
of
Sta
lls
2001
2002
2003
2004
2005
E
Existing Acquired / Constructed
Parts & Service Revenues
Group 1 Automotive, Inc.November 2005
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Service Marketing Traditionally
– Service marketing has lagged vehicle marketing
– Direct mail campaigns
New standards– Email and electronic media on the Internet– Customer relationship management “CRM”
Group 1 Automotive, Inc.November 2005
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Service Marketing Electronic marketing specialist
– Easy for managers to use– Precise targeting– Consolidated,
clean database– Customized offers– Maximize shop
capacity utilization
Group 1 Automotive, Inc.November 2005
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Email’s Collected
0
5,000
10,000
15,000
20,000
25,000
Jan
Feb Mar Apr
May Ju
nJu
lAug
Sep OctNov
Dec
(in
th
ou
sa
nd
s)
More than 200,000 emails collected in 2005– We estimate that we will
triple that number in 2006 More than $1 million in
postage and fulfillment savings
More than 200,000 emails sent monthly
Consistent message Response rate 4-5 times
better than direct mail
2005 Emails Collected
Group 1 Automotive, Inc.November 2005
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Service Drive Technology
Group 1 Automotive, Inc.November 2005
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Finance & Insurance Technology Route One / DealerTrack e-Contracting Integrated DMS, credit
process and menu selling
Increased sales, Smoother transactions
Group 1 Automotive, Inc.November 2005
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Summary Increased efficiencies Reduced overhead Improved revenue generation Higher customer satisfaction Employee empowerment and retention
GROUP AUTOMOTIVE INC