Group 1 Automotive has recently released its 2020 second quarter business update, reporting that revenues for new vehicles sales and service have significantly improved at an unexpectedly fast pace than costs incurred during the months of May and June compared to the last month of the first quarter and the first month of the second quarter.
The auto company is expecting that the positive progress in vehicle sales and service performance in the U.S. will help achieve operational earnings by being able to offset the financial challenges encountered in the UK and Brazil.
"The faster-than-expected recovery of the U.S. auto market combined with our timely and aggressive cost cuts across all three of our operating markets and at our headquarters will enable us to report a better-than-expected financial quarter on an operating basis. Despite large revenue declines for the second quarter, we project new vehicle sales margin improvements and meaningful cost leverage to drive a significant level of corporate profitability. Used vehicle sales are currently strong in both the U.S. and UK. Although we are not yet back to pre-COVID-19 levels in new vehicle sales and service, we have seen continuing improvement in both areas since early May in the U.S. and since the beginning of June in the UK," Earl J. Hesterberg, Group 1's president and chief executive officer, said.
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