1031203--2/12/2010--GROUP_1_AUTOMOTIVE

related topics

{customer, product, revenue}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{provision, law, control}

{acquisition, growth, future}

{product, candidate, development}

{operation, international, foreign}

{tax, income, asset}

{loss, insurance, financial}

{operation, natural, condition}

{personnel, key, retain}

{stock, price, share}

{product, market, service}

{condition, economic, financial}

Our success depends upon the continued viability and overall success of a limited number of manufacturers. If we fail to obtain a desirable mix of popular new vehicles from manufacturers our profitability can be affected. Restrictions in our agreements with manufacturers could negatively impact our ability to obtain certain types of financings. If manufacturers discontinue or change sales incentives, warranties and other promotional programs, our results of operations may be materially adversely affected. If we fail to obtain renewals of one or more of our franchise agreements on favorable terms or substantial franchises are terminated, our operations may be significantly impaired. If state dealer laws are repealed or weakened, our dealerships will be more susceptible to termination, non-renewal or renegotiation of their franchise agreements. Growth in our revenues and earnings will be impacted by our ability to acquire and successfully integrate and operate dealerships. Manufacturers restrictions on acquisitions may limit our future growth. If we lose key personnel or are unable to attract additional qualified personnel, our business could be adversely affected because we rely on the industry knowledge and relationships of our key personnel. Substantial competition in automotive sales and services may adversely affect our profitability due to our need to lower prices to sustain sales. The impairment of our goodwill, our indefinite-lived intangibles and our other long-lived assets has had, and may have in the future, a material adverse effect on our reported results of operations. Changes in interest rates could adversely impact our profitability. Natural disasters and adverse weather events can disrupt our business. Climate change legislation or regulations restricting emission of greenhouse gases could result in increased operating costs and reduced demand for the vehicles we sell. Our insurance does not fully cover all of our operational risks, and changes in the cost of insurance or the availability of insurance could materially increase our insurance costs or result in a decrease in our insurance coverage. Our indebtedness and lease obligations could materially adversely affect our financial health, limit our ability to finance future acquisitions and capital expenditures, and prevent us from fulfilling our financial obligations. Our inability to meet a financial covenant contained in our debt agreements may adversely affect our liquidity, financial condition or results of operations. Our U.K. operations are subject to risks associated with foreign currency and exchange rate fluctuations. Certain restrictions relating to our management and ownership of our common stock could deter prospective acquirers from acquiring control of us and adversely affect our ability to engage in equity offerings. Our certificate of incorporation, bylaws and franchise agreements contain provisions that make a takeover of us difficult. We can issue preferred stock without stockholder approval, which could materially adversely affect the rights of common stockholders. Governmental Regulation pertaining to fuel economy (CAFE) standards may affect the manufacturer s ability to produce cost effective vehicles. We are subject to substantial regulation which may adversely affect our profitability and significantly increase our costs in the future. Our automotive dealerships are subject to stringent federal, state and local environmental laws and regulations that may result in claims and liabilities, which could be material.

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1031203--2/12/2010--GROUP_1_AUTOMOTIVE_INC