Group 1 Automotive, an American based group have purchased dealerships from the Essex Audi Group. The fee has not been revealed. Some may have expected this news as talks were revealed on Twitter in April.
Essex and East London Audi’s taken over
Group 1 Automotive are the 4th biggest dealer group based in the United States. The dealerships that were purchased include Chelmsford Audi, Southend Audi, Chingford Audi, Docklands Audi and Stanstead Audi. Over the course of the year, this particular group is expected to generate more than £170 million in turnover for 2012.
Further expansion plans
Group 1 Automotive are not expected to stop there however. They are hoping to expand beyond Essex and East London, building new Audi dealerships throughout the UK.
The President of Group 1, Earl J Hesterberg expressed his delight at the deal, saying “We are delighted to announce the acquisition of these six Audi dealerships in East London and Essex, as we have been patiently looking for an opportunity to expand our presence and luxury brand offerings in the United Kingdom.”
“This acquisition more than doubles our footprint in the region while adding scale and additional leverage to the business. In addition, we are extremely pleased to expand our global relationship with the Volkswagen Group by partnering with Audi UK, a luxury market leader in the UK.”
Previous business in Brighton, Hailsham and Worthing
This is not the first time that Group 1 has done business in the UK. Previously they had purchased BMW and Mini back in 2007 in the areas of Brighton, Hailsham and Worthing. 3 years later the company purchased BMW and Mini dealerships but this time in Farnborough and Hindhead.
Profits and revenue on the up
Group 1 experienced a wonderful record breaking performance last year. Gross profit increase by a huge 9.5 per cent hitting $960.6 million in total. Turnover increased by 10.4 per cent hitting a massive $6.08 billion. UK business equates to 5 per cent of Group 1’s final sales figure.
Essex Audi name to remain
The takeover will not require Essex Audi to change their name. It will remain with all associated dealerships.
Group 1‘s plans to expand here in the UK were revealed earlier this year. Their main business resides in the United States with 118 automotive dealerships along with 150 franchises.