Group 1 Automotive Reports on Hurricane Harvey Impact
Sept. 6, 2017—Group 1 Automotive announced it has completed a preliminary assessment of damages across its Texas dealerships in the aftermath of Hurricane Harvey.
Total damages associated with the storm are estimated at approximately $15 million. This amount includes insurance deductibles for damaged inventory and facilities, disaster pay for employees, and financial support for team members whose homes flooded.
Despite damage to some facilities and inventory due to record-breaking flooding in the region, preliminary assessments indicate all facilities are intact and fully operational. Group 1's Houston stores reopened on Wednesday, Aug. 30. The company's Beaumont stores reopened on Thursday, Aug. 31.
Approximately 500 of the company's associates suffered significant property losses from flooding and storm damage. The company is assisting these employees by providing disaster pay and further financial support from the Group 1 Foundation.
"Our top priority is supporting our employees in the areas affected by Hurricane Harvey. The size and scope of this disaster is almost beyond comprehension and the losses many of our employees and their family members have suffered is staggering. Our hearts go out to all of those affected by this devastating storm," said Earl J. Hesterberg, Group 1's president and CEO. "Beyond helping our employees, we are also moving quickly to get our stores fully online to support the community's needs for replacement vehicles.
"Through some extraordinary efforts by our team, we have all of our stores in both Houston and Beaumont open. And while we did sustain some inventory losses, given that we have over 15,000 units in stock in the impacted area, we are proud of the proactive efforts taken by our dealership teams that greatly protected our new and used inventory.
"Their actions preserved over 98 percent of our available inventory, which allows us to rapidly assist customers in need of replacement vehicles and service. The Company's third quarter results will be impacted by both the non-recurring costs highlighted above, as well the impact of the business disruption for an entire week across the Houston region, which represents Group 1's largest revenue-generating market."