The FINANCIAL — According to Marketwire, Group 1 Automotive Inc. (NYSE: GPI), a Fortune 500 automotive retailer, today announced that it has reduced the borrowing capacity under its credit arrangement with Ford Motor Credit Company for floorplan financing to $150 million, from $300 million, with no change to the terms or pricing.
This evergreen facility provides financing for new vehicle inventory manufactured by Ford Motor Company and its affiliates.
"With Group 1's shift to import and luxury brands over the last few years, Ford-manufactured vehicles now represent about half of the volume they did for us in 2005," said John C. Rickel, Group 1's senior vice president and chief financial officer. "Group 1, therefore, agreed to support Ford Motor Credit's request to reduce their floorplan commitment level, as our inventory requirements for Ford vehicles going forward will be more-than-adequately covered by the $150 million capacity limit."
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