Group 1 Automotive will start the new year with a new chief executive officer.

The retailer said Wednesday that president and CEO Earl Hesterberg will retire from his chief executive post and from the board of directors on Dec. 31.

Stepping into the CEO role on Jan. 1 will be Daryl Kenningham.

Kenningham, who is currently president of U.S. operations, has been immediately appointed to be company president, chief operating officer and a board member.

“On behalf of the board of directors and the Group 1 employees, we are deeply grateful for Earl’s many years of exceptional leadership and strategic vision,” Group 1 board chairman Steve Quinn said in a news release.

“As a highly respected international automotive executive, Earl utilized his relationships to expand the company's U.S. operations and build a significant U.K. business, increasing aggregate company revenues threefold. His passion for our core values — integrity, transparency, professionalism, teamwork and respect — promotes an invigorating workplace for our associates and drives our commitment to excellent customer service,” Quinn said.

Regarding Kenningham’s promotion, Quinn said: “The board and I are delighted to announce Daryl as Group 1's next CEO. Over the course of his career, Daryl has developed strong relationships with the automotive manufacturers.  

“He is a proven, strategic operating executive with extensive automotive experience and a deep knowledge of Group 1.  His business acumen and experience in the implementation of applied technology are what we need in this fast changing, dynamic marketplace.  He has placed great emphasis on all aspects of ESG, and in particular has become a champion in the area of diversity, equity and inclusion.”

Hesterberg has been with Group 1 since April 2005. He previously worked with OEMs for 30 years, including time with Ford and Nissan.

“Now is the perfect time to transition to a new generation of leadership at our company,” Hesterberg said. “Daryl's performance throughout his career has been exemplary, and he has driven our U.S. business to record levels.  Although I will sorely miss the wonderful people at Group 1, this transition will be seamless and our company could not be in better hands.”

Kenningham has been with Group 1 since 2011, when he joined as a regional vice president. His career includes time as the COO of Ascent Automotive as well as senior executive roles with Gulf States Toyota, where he worked from 1998 to 2011, and Nissan.

In the release, Kenningham said: “I am honored and excited to embark on this new role. I thank Earl for his outstanding leadership and the board for their confidence, guidance and support. We have an outstanding team at Group 1, and I am energized to work alongside them to chart our path forward for the benefit of our employees, customers, communities and stakeholders during this exciting and dynamic time in our industry.”