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Group 1 Automotive cuts 700 jobs to improve U.S. SG&A leverage
The company also aligned spending with sales volumes by eliminating about $15 million in vendor contracts, and cited resilient U.S. new-vehicle margins above $3,300 per unit.
Group 1 Automotive said it is addressing U.S. SG&A deleveraging by cutting 700 employees and eliminating roughly $15 million in vendor contracts to better match current sales volumes, according to a Yahoo Finance earnings-call summary.
The company reported that U.S. new-vehicle margins remained resilient at over $3,300 per unit, supported by disciplined pricing amid affordability concerns and high interest rates, and it linked after-sales growth to a shift from underperforming collision-center space into higher-margin service capacity.
Group 1 Automotive said the rebranding of U.S. stores reached a 50% completion mark to consolidate marketing spend under a single brand voice, while its U.K. operations delivered a 20% increase in same-store gross profit through expanded workshop hours and competitive maintenance pricing.
Looking ahead, the company outlined a $50 million annualized cost-saving program expected to contribute about $12.5 million per quarter starting in Q2 2026, and it said its virtual F&I platform currently handles 20% of deals across one-third of U.S. stores with plans to expand.