"We don't have an overarching strategy that says we're going to have a digital footprint that allows us to sell a car from a dealership in Atlanta, Ga., to a customer in Seattle, Wash. But Group 1 is not looking to set up a coast-to-coast network, he said. Kenningham told Automotive News that growth is the top priority for Group 1, following its purchase of 28 dealerships in the Northeast from Prime Automotive Group last year. "That comes with the whole team being on the same page, and you've got to give Earl credit for that," Ward said. And Group 1 isn't chasing the decisions by publicly owned peers to start standalone used-vehicle operations or financing arms - a sign that it knows its strengths, he said. Group 1's prospects for growth in its remaining U.S. Michael Ward, an auto analyst for The Benchmark Co., said he is glad Group 1 is no longer in Brazil, calling it "more of a distraction than a potential positive" given the challenges building the business. But the exchange rate of two-to-one is now more like five-to-one, and we'd make more profit every year in local currency, and it would translate into less dollars." It was two-to-one when we went down there. Hesterberg in February told analysts that "we could never outrun. At the end of 2021, Group 1 said 16 dealerships representing BMW, Honda, Land Rover and Toyota generated roughly $315.1 million in annual revenue. Group 1 last fall said it would exit Brazil, a country it entered in 2013 with the acquisition of UAB Motors Participacoes, but also one in which it struggled to grow against a challenging exchange rate.Īt the time of the acquisition, Group 1 said the Brazil dealerships were expected to generate roughly $650 million in estimated annual revenue.
and United Kingdom, after completing the sale of its Brazil operations in July. Group 1 said it now has 204 dealerships in the U.S. and Nissan Motor Co.Īs CEO, Hesterberg guided the company's international expansion, first into the United Kingdom and later into Brazil. Hesterberg came to Group 1 in April 2005 from a career that included time at Ford Motor Co. "Although I will sorely miss the wonderful people at Group 1, this transition will be seamless and our Company could not be in better hands." business to record levels," Hesterberg said. "Daryl's performance throughout his career has been exemplary, and he has driven our U.S. Group 1 did not make Hesterberg available for an interview this week. "Now is the perfect time to transition to a new generation of leadership at our company," Hesterberg said in a statement. Kenningham joined Group 1 in 2011, first in the role of regional vice president before taking on additional responsibilities. Hesterberg, 69, will leave Group 1 effective Dec. Kenningham, 58, will be in position to execute on that strategy as of Jan. "We get plenty of acquisition opportunities across our desks that are either in places that we don't feel it's a place we want to be or brands that we feel like we can't make successful long term. "We're not going to just chase revenue for the sake of chasing revenue," said Kenningham, who declined to discuss whether Houston-based Group 1 has deals in the pipeline.
Kenningham told Automotive News that the dealership group will look for "quality acquisitions" with regard to locations and vehicle brands that best align with the company's direction. operations since 2019 until his promotion this week to president and COO, will take over as chief executive in January following the year-end retirement of CEO Earl Hesterberg, which was announced Wednesday. and the United Kingdom, as the public dealership group prepares for a CEO changeover next year.ĭaryl Kenningham, Group 1's president of U.S. will stay focused on growth through acquisitions, both in the U.S.
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