Turning to our largest manufacture partner, clearly Toyota’s recall issues dominated the automotive news during the first quarter. And we talked about this on our fourth quarter call but not sure how much of an impact these issues would have on our sales particularly the stop sale on models that represented about 60% of our Toyota volume. We found that the stop sale was short lived and following that period Toyota began to introduce aggressive financing incentive and pre-maintenance programs to restart their sales. This worked well in March and gave consumers a reason to come back to Toyota dealerships.The Toyota brand remains a powerful one and the attractive offers generated substantial increase in customer traffic at our Toyota dealerships. As a result we’ve seen Toyota sales re-bounce strongly. For the quarter our Toyota sales increased 14% over the same period a year ago. And then the other operating highlights of the first quarter were improved used vehicle sales 24% on a year-over-year basis, increased gross profit in all business segments, expanded new vehicle and parts and service gross margins from the prior year period, better retail use vehicle margins on a sequential quarter basis, improved SG&A as a percentage of gross profit by 250 basis points (inaudible) car structuring increased gross profits.
Group 1 Automotive, Inc. Q1 2010 Earnings Call Transcript
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