Group 1 Automotive Inc., the fourth largest dealership group in the United States, announced today it has established a $1.35 billion line of credit with 21 financial institutions.
The dealership group plans to use $1.1 billion of the funds for inventory floorplan financing. The other $250 million will be used for acquisitions and other corporate purposes. The line of credit will expire in 2016 and can be expanded to $1.6 billion, reported Automotive News.
As the industry rebounds, Michael Welch, Group 1’s treasurer, said the company wanted to ensure that dealerships had inventory as sales increase.
Group 1 owns and operates 105 dealerships throughout the United States and Great Britain.
Participating financial institutions include Toyota Motor Credit Corp.; BMW Financial Services; Mercedes-Benz Financial Services; and Nissan Motor Acceptance Corp.
Group 1’s previous credit facility, secured in 2007, was set to expire in March 2012, Welch said. Group 1 was determined to lock up the credit facility before the current deal expired, Welch said in an interview today.
“When the timing is right you need to take the opportunity,” he said.
Group 1, of Houston, Texas, ranks No. 4 on the Automotive News list of the top 100 dealership groups in the United States with retail sales of 97,511 new vehicles in 2010.
media brand
0 Comments
See all comments