HOUSTON — Automotive retailer Group 1 Automotive Inc. said today that it reduced the borrowing capacity under its credit arrangement with Ford Motor Credit Company for floorplan financing from $300 million to $150 million, with no change to the terms or pricing.
This evergreen facility provides financing for new vehicle inventory
manufactured by Ford Motor Company and its affiliates. The reduction of this credit facility follows a decline in Ford-brand sales.
"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," said John C. 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 floorplan commitment level, as our inventory requirements for Ford vehicles going forward will be more than adequately covered by the $150 million capacity limit."