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GROUP AUTOMOTIVE INC “Maximizing Human Capital Through Technology” Automotive News World Congress January 17, 2006
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2 Group 1 Automotive, Inc. November 2005 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.
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3 Group 1 Automotive, Inc. November 2005 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)
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4 Group 1 Automotive, Inc. November 2005 Revenue Growth History Revenues 2000-4 Revenue CAGR = 11%
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5 Group 1 Automotive, Inc. November 2005 Prior Platforms
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6 Group 1 Automotive, Inc. November 2005 Current Regionalization
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7 Group 1 Automotive, Inc. November 2005 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
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8 Group 1 Automotive, Inc. November 2005 Progress Cost efficiencies Process standardizations Streamlined buying process
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9 Group 1 Automotive, Inc. November 2005 Differentiator Similarities – Same vehicles / same prices – Manufacturer designated locations – Manufacturer designated imaging Differentiator – PEOPLE
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The Right Tools
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11 Group 1 Automotive, Inc. November 2005 Technology Empowerment Management – Retain – Engage – Empower Processes – Streamline – Efficiencies – Effectiveness – Controls
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12 Group 1 Automotive, Inc. November 2005 Used Vehicle Inventory GPI Used Vehicles
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13 Group 1 Automotive, Inc. November 2005 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
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14 Group 1 Automotive, Inc. November 2005 Computer Management Systems Used vehicle computer management systems – Strategic alliance with American Auto Exchange – Increase transparency – Increase controls – Organize and leverage decision-making process
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15 Group 1 Automotive, Inc. November 2005 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
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16 Group 1 Automotive, Inc. November 2005 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
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17 Group 1 Automotive, Inc. November 2005 Parts & Service Actions Productive Service Stall Count Parts & Service Revenues
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18 Group 1 Automotive, Inc. November 2005 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”
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19 Group 1 Automotive, Inc. November 2005 Service Marketing Electronic marketing specialist – Easy for managers to use – Precise targeting – Consolidated, clean database – Customized offers – Maximize shop capacity utilization
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20 Group 1 Automotive, Inc. November 2005 Email’s Collected 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
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21 Group 1 Automotive, Inc. November 2005 Service Drive Technology
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22 Group 1 Automotive, Inc. November 2005 Finance & Insurance Technology Route One / DealerTrack e-Contracting Integrated DMS, credit process and menu selling Increased sales, Smoother transactions
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23 Group 1 Automotive, Inc. November 2005 Summary Increased efficiencies Reduced overhead Improved revenue generation Higher customer satisfaction Employee empowerment and retention
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GROUP AUTOMOTIVE INC
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