Group 1 Automotive (GPI) has disclosed a new risk, in the Supply Chain category.
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Group 1 Automotive faces significant business risks due to its reliance on third-party vendors and suppliers for essential components, such as data management and critical customer systems. The potential for these vendors to encounter disruptions, including financial distress or cybersecurity incidents like the one experienced by CDK Global LLC in June 2024, poses a threat to the company’s operational stability. Any failure by these third parties to deliver products or services could adversely impact Group 1 Automotive’s business performance and financial condition. This dependency underscores the importance of proactive risk management strategies to mitigate potential disruptions.
Overall, Wall Street has a Strong Buy consensus rating on GPI stock based on 6 Buys and 2 Holds.
To learn more about Group 1 Automotive’s risk factors, click here.
