Group 1 Trims Ford Credit Floor Planning Facility
HOUSTON — Group 1 Automotive announced Monday that it has reduced the borrowing capacity under its credit arrangement with Ford Motor Credit Co. for floor plan financing to $150 million from $300 million, with no change to the terms or pricing.
This evergreen facility provides financing for new-vehicle inventory manufactured by Ford and its affiliates.
"With Group 1's shift to import and luxury brands over the last few years, Ford-manufactured vehicles now represent about half of the volume they did for us in 2005," explained John Rickel, Group 1's senior vice president and chief financial officer.
"Group 1, therefore, agreed to support Ford Motor Credit's request to reduce their floor-plan commitment level, as our inventory requirements for Ford vehicles going forward will be more than adequately covered by the $150 million capacity limit," he added.
Group 1 owns and operates 99 automotive dealerships, 133 franchises and 24 collision service centers in the United States and the United Kingdom that offer 31 brands of vehicles.