Group 1 Automotive reports on hurricane impact
Nov. 2, 2012—Group 1 Automotive is currently assessing the damage to its East Coast franchises in the wake of Hurricane Sandy this week.
"Our primary concern is for the well-being of our employees and customers, as well as all the individuals that have been impacted by the devastation in the Northeast," Earl J. Hesterberg, Group 1's president and CEO said in a press release_notes. "We are working to quickly assess and repair the damage at our dealerships in order to restore full operations for the local residents. The largest hurdle at present is restoration of power and computer access at a number of the dealerships and the clearing of local roads."
Group 1 owns and operates 121 dealerships, 158 franchises, and 30 collision repair shops in the U.S and United Kingdom.
Preliminary assessments indicate minor water damage at some facilities and the loss of a number of new and used vehicles due to flooding and falling debris, according to the release. The company is insured and estimates it will incur a $250,000 pre-tax deductible charge for the facilities' damages in the fourth quarter, as well as inventory losses that are estimated to be about $2.0 million based on preliminary assessments.
Business interruptions range from a couple of days in Group 1's Boston-area stores to potentially two weeks in the hardest hit areas of Long Island, N.Y., and northern New Jersey.