GROUP AUTOMOTIVE INC

“Maximizing Human Capital Through Technology”

Automotive News World CongressJanuary 17, 2006

Group 1 Automotive, Inc.November 2005

2

Group 1 Automotive, Inc. Ranked 361 on Fortune 500 Top 10 dealer group with 94 dealerships across 12 states Revenue run rate of $6.1 billion Brand and geographic diversity

– 32 brands– 142 franchises

200,000(1)

retail vehicles sold

1.6 million(1)

vehicles serviced

8,900 employees

(1) Pro forma for closed acquisitions as of 9/30/05, annualized.

Group 1 Automotive, Inc.November 2005

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Brand Diversity

(1) % total GPI new vehicle retail sales, pro forma for closed acquisitions as of 9/30/05.(2) % total U.S. new vehicle retail sales.

(2)(1)

% Total New Vehicle Unit Sales(Nine Months 2005)

Group 1 Automotive, Inc.November 2005

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Revenue Growth HistoryRevenues

2000-4 Revenue CAGR = 11%

Group 1 Automotive, Inc.November 2005

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Prior Platforms

Group 1 Automotive, Inc.November 2005

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Current Regionalization

Group 1 Automotive, Inc.November 2005

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Industry Evolution Industry evolution

– Public companies start emerging in Europe around 1987

– Public companies start emerging in the US around 1997

Early vision– Huge, mega-brand dealerships– ‘Video rental’ type buying process– Large volume discounts

Group 1 Automotive, Inc.November 2005

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Progress Cost efficiencies Process standardizations Streamlined buying process

Group 1 Automotive, Inc.November 2005

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Differentiator Similarities

– Same vehicles / same prices– Manufacturer designated locations– Manufacturer designated imaging

Differentiator– PEOPLE

The Right Tools

Group 1 Automotive, Inc.November 2005

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Technology Empowerment Management

– Retain– Engage– Empower

Processes– Streamline– Efficiencies– Effectiveness– Controls

Group 1 Automotive, Inc.November 2005

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Used Vehicle Inventory

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2001 2002 2003 2004

(In

ven

tory

Va

lue

in th

ou

san

ds)

7,000

7,500

8,000

8,500

9,000

9,500

10,000

(Inve

nto

ry Un

its)

Inventory Value Inventory Units

GPI Used Vehicles

Group 1 Automotive, Inc.November 2005

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Used Vehicle Department Previous management tools

– Days in stock– Instinct– Experience

New management w/technology– Real-time data– Instant access to

historical data– Market database in

lieu of dealership database

Group 1 Automotive, Inc.November 2005

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Computer Management Systems Used vehicle computer management systems

– Strategic alliance with American Auto Exchange– Increase transparency– Increase controls– Organize and leverage decision-making process

Group 1 Automotive, Inc.November 2005

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Used Vehicle Transactions On a daily basis

– Sell several hundred new vehicles– Appraise a total of 700-800 trade-ins

One appraisal per minute of every 12 hour day

Group 1 Automotive, Inc.November 2005

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American Auto Exchange Provides daily inventory value monitoring

capability Monitors appraisal closing rates Identifies vehicles with a high retail sale

probability Provides inventory stocking guides based on

local market historical demand Enables dealerships to “see and sell from” the

inventory of other dealerships within a given geographic region

Group 1 Automotive, Inc.November 2005

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Parts & Service Actions

$360$402

$466

$410

$565

$488

$0

$100

$200

$300

$400

$500

$600

(in

mill

ion

s)

2001

2002

2003

2004

9 M

os 2

005

Productive Service Stall Count

0

500

1,000

1,500

2,000

2,500

3,000

Nu

mb

er

of

Sta

lls

2001

2002

2003

2004

2005

E

Existing Acquired / Constructed

Parts & Service Revenues

Group 1 Automotive, Inc.November 2005

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Service Marketing Traditionally

– Service marketing has lagged vehicle marketing

– Direct mail campaigns

New standards– Email and electronic media on the Internet– Customer relationship management “CRM”

Group 1 Automotive, Inc.November 2005

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Service Marketing Electronic marketing specialist

– Easy for managers to use– Precise targeting– Consolidated,

clean database– Customized offers– Maximize shop

capacity utilization

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Email’s Collected

0

5,000

10,000

15,000

20,000

25,000

Jan

Feb Mar Apr

May Ju

nJu

lAug

Sep OctNov

Dec

(in

th

ou

sa

nd

s)

More than 200,000 emails collected in 2005– We estimate that we will

triple that number in 2006 More than $1 million in

postage and fulfillment savings

More than 200,000 emails sent monthly

Consistent message Response rate 4-5 times

better than direct mail

2005 Emails Collected

Group 1 Automotive, Inc.November 2005

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Service Drive Technology

Group 1 Automotive, Inc.November 2005

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Finance & Insurance Technology Route One / DealerTrack e-Contracting Integrated DMS, credit

process and menu selling

Increased sales, Smoother transactions

Group 1 Automotive, Inc.November 2005

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Summary Increased efficiencies Reduced overhead Improved revenue generation Higher customer satisfaction Employee empowerment and retention

GROUP AUTOMOTIVE INC