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Group 1 Assesses Hurricane Harvey Impact

A preliminary assessment by Houston-based Group 1 Automotive found that employees were able to protect most of the company’s inventory in its Houston and Beaumont, Texas, stores from the devastating effects of Hurricane Harvey.

by Staff
September 5, 2017
Group 1 Assesses Hurricane Harvey Impact

 

2 min to read


HOUSTON — Group 1 Automotive Inc. announced it has completed a preliminary assessment of damages across its Texas dealerships in the aftermath of Hurricane Harvey. 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 the following day. 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.

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In a statement, the company’s directors emphasized that their top priority is supporting their nearly 3,000 employees in the greater Houston and Beaumont areas of Texas. Approximately 500 associates suffered significant property losses from flooding and storm damage, and the company is assisting these employees by providing disaster pay and further financial support from the Group 1 Foundation, according to Earl J. Hesterberg, Group 1’s president and CEO.

“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,” Hesterberg said. “Beyond helping our employees, we are also moving quickly to get our stores fully online to support the community’s needs for replacement vehicles.”

The Houston and Beaumont stores were reopened thanks to “extraordinary efforts” by employees, Hesterberg added, noting that more than 98% of the company’s 15,000 units in those stores were protected, allowing the company to begin serving customers who need 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,” Hesterberg noted.

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