Asbury Automotive Group Inc ABG

Morningstar Rating

Asbury Can Focus on Overhead Cost Leverage Now That the Tekion Conversion is Done

Business Strategy and Outlook

Although no auto dealer is immune to macroeconomic risks, Asbury Automotive Group's size, focused acquisition strategy, technology to leverage overhead, and diverse revenue streams should allow the firm to keep growing at the expense of smaller dealers. The new Tekion dealer management system should help lower overhead costs as a percent of gross profit by enabling more productivity per salesperson or technician.

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