Houston-based Group 1 Automotive saw its parts and service revenue increase 7 percent to $210.07 million in the third quarter of 2011. Same-store parts and service revenue rose 2.2 percent, driven primarily by a 6.8-percent rise in wholesale part sales and a 2.6-percent increase in customer-pay parts and service sales. The company also generated a 7.4-percent increase in collision revenue. Warranty parts and service revenue decreased 6.3 percent because of the non-recurrence of a large Toyota recall in 2010.
While parts and service gross profit rose 2.5 percent to $109.23 million, the business’s gross margin fell from 54.3 percent to 52.0 percent year-over-year. The decline stems from growth in the collision and wholesale parts segments, which are relatively lower-margin segments, outpacing growth in the customer-pay and warranty-related parts and service segments.
Group 1 owns and operates 108 automotive dealerships, 140 franchises, and 27 collision centers in the United States and the United Kingdom.