Group 1 Automotive (GPI) will suspend its quarterly dividend because of the COVID-19 pandemic. This ends 10 consecutive years of dividend increases by the car dealership company and follows a 3.4 percent increase in the first quarter of 2020.

In a press release the company announces additional crisis response actions, including the suspension of the quarterly dividend and the canceling of its prior share repurchase authorization.

"Due to the dramatic impact of the COV-ID 19 pandemic on the auto retail market and the associated temporary displacement of so many of our valued employees, the Group 1 Automotive Board of Directors has decided to suspend the quarterly dividend and cancel our existing share repurchase authorization at this time," said Earl J. Hesterberg, Group 1's president and chief executive officer in today's press release. "In addition, we have reviewed our planned capital expenditures and are making significant reductions to this year's planned spending.  These actions will further strengthen our balance sheet and provide additional resources during this period of market disruption," added Hesterberg.

Group 1 Automotive, Inc. owns and operates automotive dealerships, franchises, and collision centers in the United States, the United Kingdom and Brazil that offer 31 brands of automobiles. Through its dealerships, the company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts. Group 1 Automotive became a public company in October 1997 and restarted a quarterly payment in 2010 following the suspension of its dividend in 2009 during the financial crisis. Group 1 suspended its dividend again during the COVID-19 pandemic in 2020.