Auto dealership chain Group 1 Automotive Inc. has reported record earnings for 2001, driven by strong vehicle sales on the back of customer incentives. The megadealer has raised its 2002 forecast.

"Growth in all revenue categories and lower interest expense drove the record-setting performance for the quarter and for the year," the company said in a statement.

Q4 revenues were up 24 percent on a year earlier and full year revenue was up 11 percent.

For the fourth quarter ended Dec. 31, 2001, revenues grew 24 percent to $1.0 billion, from $841.1 million for the same period last year. New-vehicle revenues rose 24 percent and unit sales increased 21 percent. Used-vehicle revenues also rose 24 percent with unit sales 29 percent higher.

Parts and service and other dealership revenues increased significantly, growing 15 percent and 30 percent, respectively.

For the year 2001, revenues reached $4.0 billion, increase of 11 percent from $3.6 billion in 2000. New-vehicle revenues grew 9 percent and unit sales increased 4 percent. Used-vehicle revenues expanded 13 percent and unit sales rose 15 percent. Parts and service and other dealership revenues grew 18 percent and 25 percent, respectively, compared with 2000.

"We are pleased with our continued progress and are encouraged with our future prospects," said B.B. Hollingsworth Jr., Group 1's chairman, president and CEO. "Low interest rates combined with manufacturers' incentives and rebates, shorter, more innovative product cycles, and affordability of vehicles continue to drive customers into our dealerships."