Group 1 Buys GM Dealer, Opens VW and Fiat Stores
HOUSTON — Group 1 Automotive Inc. announced the acquisition of David Taylor Cadillac Buick GMC in Houston and the opening of two new Volkswagen dealerships in the San Diego and Beaumont, Texas. The dealer group also announced the opening of Sterling McCall Fiat in Houston.
"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 Dallas market earlier this year."
In total, the six franchises are expected to generate $188 million in estimated annual revenues, company officials said. David Taylor Cadillac Buick GMC is expected to add about $110 million in estimated annual revenues and complements the 11 existing dealerships that Group 1 operates in the Houston-Metro market area, reported F&I and Showroom magazine.
The Volkswagen Kearny Mesa and Beaumont franchises were awarded to Group 1 by Volkswagen of America. They represent new operating locations for Volkswagen in those markets, according to Group 1. The company anticipates that the two dealerships will add approximately $73 million in estimated annual revenues.
In August, Group 1 opened Sterling McCall Fiat in Houston, which is expected to generate $5 million in estimated annual revenues, according to the company. The three awarded franchises will be located in existing facilities alongside current operations and will be modified to the manufacturer's image requirements.
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