DULUTH, Ga.–(BUSINESS WIRE)–Asbury Automotive Group (NYSE: ABG) in the present day rejected false and unfounded allegations by the Federal Commerce Fee (FTC) that three of its dealerships within the Dallas-Ft. Value space bought safety merchandise to prospects that the shoppers didn’t agree to purchase and that the dealerships discriminated in opposition to minorities within the sale of those merchandise.
After rigorously reviewing the dealerships’ information, Asbury (NYSE:) mentioned it’ll contest the FTC’s lawsuit alleging violations associated to the sale of what the FTC calls add-on merchandise and can defend the dealerships’ gross sales practices.
The dealerships “ David McDavid Ford (NYSE:) of Ft. Value and David McDavid Honda (NYSE:) of Frisco and of Irving “ performed an intensive inside overview. In line with firm coverage, prospects who bought safety merchandise obtained full disclosure in regards to the merchandise’ prices, affect on funds, and different necessary phrases. Prospects signed for the safety merchandise, which have been itemized individually on paperwork offered to the shoppers.
Previous to finalizing gross sales, the dealerships take the extra, extraordinary step of requiring a compliance overview by an impartial deal clerk to make sure that safety merchandise are bought with the client’s signed consent. The dealerships’ insurance policies and coaching forbid the sale of safety merchandise corresponding to service contracts, upkeep plans, and interior-exterior safety with out specific, written approval from prospects. If Asbury staff members are discovered to have engaged within the type of conduct alleged by the FTC, they’re topic to disciplinary motion, together with termination.
FTC officers refused to supply the methodology they employed in making their allegations regardless that Asbury requested such info for a number of months. Asbury has verified via a Freedom of Info Act request that the FTC obtained no client complaints in regards to the McDavid dealerships from 2019, the beginning of the interval coated by the lawsuit, via late spring of this yr.
Asbury Automotive takes nice satisfaction in its compliance procedures and coaching practices, and firmly believes that we defend our company and serve them effectively, mentioned David W. Hult, Asbury’s CEO. We provide common and dependable merchandise that defend our company and their households together with roadside help for stranded motorists, protection for upkeep and surprising repairs, and safety from inside and exterior harm.
Dan Clara, Senior Vice President of Operations, rejected the FTC’s assertion that minority prospects have been charged extra for cover merchandise than different prospects. Asbury is dedicated to non-discrimination and has applied insurance policies, coaching, and monitoring to make sure that our dealerships adjust to requirements on honest lending and equal credit score alternative, Clara mentioned. I’m proud that Asbury is among the few corporations within the business that has a Chief Variety, Fairness, and Inclusion Officer. As well as, the three dealerships in query are extremely numerous, from the best degree of management to front-line workers staff, and in that approach mirror the demographics of the company they serve.
Asbury CEO David Hult added, We won’t permit the FTC to coerce fines from us or topic us to onerous necessities that negatively affect the car-buying expertise for our prospects, wouldn’t apply to others, and would place us at a aggressive drawback within the business. We’re assured that we are going to prevail within the litigation.
For inquiries and knowledge, go to https://buyers.asburyauto.com/ftc.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 firm headquartered in Duluth, GA, is among the largest automotive retailers within the U.S. In late 2020, Asbury launched into a multi-year plan to extend income and profitability strategically via natural operations, acquisitive progress and modern applied sciences, with its guest-centric strategy as Asbury’s fixed North Star. As of June 30, 2024, Asbury operated 204 new automobile dealerships (155 dealership operations), representing 31 manufacturers of cars and 37 collision facilities in 15 states. Asbury additionally operates Complete Care Auto, Powered by Landcar, a number one supplier of service contracts and different automobile safety merchandise. Asbury presents an in depth vary of automotive services and products, together with new and used automobiles; elements and repair, which incorporates automobile restore and upkeep providers, alternative elements and collision restore providers; and finance and insurance coverage merchandise, together with arranging automobile financing via third events and aftermarket merchandise, corresponding to prolonged service contracts, assured asset safety debt cancellation, and pay as you go upkeep. Asbury ranks 18th within the 2023 Forbes listing of America’s Greatest Mid-Sized Corporations. Asbury is acknowledged as considered one of America’s Biggest Workplaces 2023 by Newsweek in addition to one of many Greatest Corporations to Work For within the Retailers business by U.S. Information & World Report.
For added info, go to www.asburyauto.com.
Ahead-Wanting Statements
This press launch comprises forward-looking statements throughout the that means of the Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements are statements apart from historic truth, and should embrace statements referring to objectives, plans, goals, beliefs, expectations and assumptions with respect to the lawsuit filed by the FTC, Asbury’s intentions with respect to difficult such lawsuit and the potential affect of such lawsuit, projections relating to Asbury’s monetary place, liquidity, outcomes of operations, money flows, leverage, market place, the timing and quantity of any inventory repurchases, and dealership portfolio, income enhancement methods, operational enhancements, projections relating to the anticipated advantages of Clicklane, administration’s plans, projections and goals for future operations, scale and efficiency, integration plans and anticipated synergies from acquisitions, capital allocation technique, enterprise technique. These statements are primarily based on administration’s present expectations and beliefs and contain vital dangers and uncertainties which will trigger outcomes to vary materially from these set forth within the statements. These dangers and uncertainties embrace, amongst different issues, opposed outcomes with respect to present and future litigation and different proceedings, together with, with out limitation, the FTC lawsuit, our incapability to comprehend the advantages anticipated from lately accomplished transactions; our incapability to promptly and successfully combine accomplished transactions and the diversion of administration’s consideration from ongoing enterprise and common enterprise duties; our incapability to finish future acquisitions or divestitures and the dangers ensuing therefrom; any provide chain disruptions impacting our business and enterprise, market components, Asbury’s relationships with, and the monetary and operational stability of, automobile producers and different suppliers, acts of God, acts of battle or different incidents and the scarcity of semiconductor chips and different elements, which can adversely affect provide from automobile producers and/or current retail gross sales challenges; dangers related to Asbury’s indebtedness and our capability to adjust to relevant covenants in our numerous financing agreements, or to acquire waivers of those covenants as vital; dangers associated to competitors within the automotive retail and repair industries, normal financial circumstances each nationally and domestically, governmental rules, laws, together with modifications in automotive state franchise legal guidelines, and Asbury’s capability to execute its strategic and operational methods and initiatives, together with its five-year strategic plan, Asbury’s capability to leverage features from its dealership portfolio, Asbury’s capability to capitalize on alternatives to repurchase its debt and fairness securities or buy properties that it at present leases, and Asbury’s capability to remain inside its focused vary for capital expenditures. There may be no ensures that Asbury’s plans for future operations can be efficiently applied or that they’ll show to be commercially profitable.
These and different danger components that would trigger precise outcomes to vary materially from these expressed or implied in our forward-looking statements are and can be mentioned in Asbury’s filings with the U.S. Securities and Trade Fee infrequently, together with its most up-to-date annual report on Type 10-Okay and any subsequently filed quarterly experiences on Type 10-Q. These forward-looking statements and such dangers, uncertainties and different components communicate solely as of the date of this press launch. We undertake no obligation to publicly replace any forward-looking assertion, whether or not on account of new info, future occasions or in any other case.
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Buyers & Reporters Could Contact:
Joe Sorice
Supervisor, Investor Relations
(770) 418-8211
ir@asburyauto.com
Supply: Asbury Automotive Group, Inc.
