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Group 1 Automotive (GPI)

Participants
Pete DeLongchamps SVP of Manufacturer Relations, Financial Services and Public Affairs
Earl Hesterberg President and Chief Executive Officer
Daryl Kenningham President of U.S. and Brazilian Operations
Daniel McHenry Senior Vice President and Chief Financial Officer
Mike Ward Benchmark
John Murphy Bank of America
Rajat Gupta JPMorgan
Rick Nelson Stephens
David Whiston Morningstar
Call transcript
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Operator

Good morning, ladies and gentlemen, and welcome to Group 1 Automotive's 2021 Second Quarter Financial Results Conference Call. Please be advised that today's conference call is being recorded. At this time, I'd like to turn the conference call over to Mr. Pete DeLongchamps, Group 1's Senior Vice President of Manufacturer Relations, Financial Services and Public Affairs. Please go ahead, Mr. DeLongchamps.

Pete DeLongchamps

adjusted welcome morning call. presentation for and reconciliations to and we earnings that comparison everyone, refer related this will posted issued a the X's purposes morning, have to this to The today's release include to been Good on we Group call website. results related slide

mentioned call, we I'd Private of XXXX. like Act measures. about made the and statements non-GAAP of begin, Automotive to financial remarks Group conference to of Reform Before are that use for safe Except during by management information forward-looking the historical forward-looking provisions Litigation harbor statements are make some the the of X Securities brief pursuant statements

available global other virus XX resulting related the on Copies the prices demand public economy both past months. the Commission vehicles the cause SEC from materially used supply actual in conditions to increased to, new are the future and and company's periods the risks the and of statements not forecasted but pricing, from shortages, in volume, Securities and company's inventory markets are due for with and and due to risks described Forward-looking services. and the known may involve results differ the developments both impacts filings the to Those associated adverse Those component as with of limited and unknown reduced well are levels to risks results. these risks Exchange manufacturing over include, related company. as production COVID-XX health demand in which and customer filings uncertainties, and

may defined on as be discussed call. In addition, this certain non-GAAP measures, under SEC financial rules,

Chief website. of non-GAAP Financial the Hesterberg, Daryl with the applicable over McHenry, Chief the hand Senior Participating Earl company Officer. measures and As and its call Executive me GAAP Officer; and comparable Daniel I'll provides rules, to required of to measures on Kenningham, our today call, any on SEC the such Brazilian reconciliations Vice and most President Operations; directly now President President our Earl. our U.S. financial by

Earl Hesterberg

and equates Pete, the that of per you, the earnings quarter of This generated quarter, of million. to I'm of increase to diluted report Thank share, increase pleased share and adjusted over adjusted year over morning, second XXX% net Group $XXX $XX.XX XXX% per XXXX. the of an for good income pre-pandemic X an everyone. prior

in income in tax to estate income gains associated Our the deferred share. offset adjusted results vehicle approximately benefit revaluation largely items and a rate noncore the of tax by per recovery of strong sales, with a decreased the strong swaps control. margins interest our vehicle exclude cost extremely of into a and remains activity Consumer markets potentially receipt. along vehicle continued immediately for to much vehicles aftersales unit demand. continue demand third third in X in the consumer further dynamic heading certain These profit due results loss $XXX,XXX should the continue all net transactions to and quarter, of were and most levels. assuming and consists U.K., we throughout change almost related items, quarter real impressive upon result and sell of inventory partially with material dealership This noncash earnings out, totaling of no units This $X.XX on

levels units we our supply. and at have our new mentioned XX-day just believe June As a X XX X,XXX about pre-release, July inventory in troughed vehicle

markets. pandemic our most suffered in shortly. aftersales Perhaps our variety stronger driving inventory more conditions the the business, lockdown about throughout XX,XXX situation recovery used important will from and units our XX-day of all Our is very and at second which quarter inventory strong is of element Daryl supply. results of a less a the speak much in

to the was versus Our of second reopen we seeing provide which increase the to over finally in aftersales U.S. market Relative an quarter profit more moment. detail pre-pandemic saw market, with U.K. same-store gross of results our XXXX. in XX% saw the a on an X.X% U.S. Daryl June increase throughout revenues will Again, mid-April, same-store month XXXX. June allowed the increased quarter sequentially in

As see U.S., of continued we with second XXXX. sequential the expect growth the to throughout half

We with XX% strong. units demand used quarter, believe U.S., demand nearly years the over sequential the past built consumer into first As the in demand several extremely vehicle increase will second U.K. strong due retailed new to help future. drive foreseeable the is from the the pandemic Brexit a and for U.K. vehicles in the We XX,XXX quarter. both and pent-up

Finally, I want do our to on to continued have regions acknowledge control. of the impressive work all cost

profit SG&A XX.X% adjusted of gross was came U.S. the and was in as a at U.K. percentage XX.X%, XX.X%. Brazil Our

our I'll is performances, that transitory witness some to there remain the level call impact certainly to high While of to productivity will Kenningham. over margins, vehicle U.S. a second Brazil vehicle levels and now on continue due of quarter Daryl very inventories normalize. provide we color turn To after

Daryl Kenningham

of a Earl. all The you, outstanding quarter U.S. our to Thank segments factors of in result growth our second contributing were business.

and well on new cost. pre-pandemic respectively. Our our Compared the XXXX, our quarter second teams relentless used also by increased to same-store sales focus and executed XX%, of XX% in very

throughout increasing adjust new and supply we tight, anticipate inventories quarter team continued vehicle necessary. new continue Our operations job vehicle inventory our that the remain as will did as We to great will decline. a vehicle margins to

unit versus sales XXXX. used the both quarter XX%, second by vehicle sequentially of improved and same-store Our

in are of our new inventories better because than aggressive position used Our sourcing. much

approach An we has while of used example PRU sourcing allowed avoiding We departments an evidenced increase of service hold sourcing in yet outstanding of to public continue X,XXX largely year-over-year. auctions. our in supply is our individual level aggressive, XX% days our $X,XXX, from strategy, constant used This also vehicle relatively very vehicles to and be over used us purchases. inventory judicious which June, through our effectiveness with sourced

performance. our aftersales driver was Another significant profit

continued profit quarter the both second that ramp over following by up XXXX with same-store in of to profit near a aftersales continues growth versus to the very dealership and quarter term. of foresee to gross business time. headwinds warranty first despite allowed same-store us over in which X% pay the customer aftersales dealership collision, compared reverse strong 'XX quarter to up grow We Our gross continuing ramp will of second XX%

The discipline. third major factor driving profit our outstanding was continued performance cost

improvement Our of a SG&A be down of the due percentage XX%, pre-pandemic material as XX% part second XXXX. benefit. largely productivity second gross a quarter adjusted gains, in profit was which the of will to quarter from is A permanent

quarter would another like to more sales platform. update Acceleride, vehicle productive our Our to XXXX. our service digital were more the over of on over I provide second departments departments XX% and XX% productive are retailing compared

on continue vote customers Our yes to Acceleride.

Our employees yes on also Acceleride. vote

second selling a the than Acceleride, vehicles quarter double We continued upward our more record the prior year. through trajectory by X,XXX in

We Acceleride. continue to employee experience advance the with customer and

our our in nature due of most and to flexible process differentiated Acceleride. Our ways, of them several find customers dynamic

ability customers within place they modular or customer as Some Acceleride information. pools and a transaction today's examples reentering are seamlessly that's would they With the tight include software. tremendous automatically their to new able payment any has a would benefit. many inventories, customers used a vehicle customers any to credit as soft vehicle to a valuations from order transition have actions that without CPO switch buying in to flow, down Trade allowing complete the And like like. selects.

Roadster. from and digital will spend come software DMS ability topics integration electronically delivery huge the deal. software integrated perfectly to has started capabilities our ahead. efficient shopping our and and in screen-sharing will employees. the That This chat of Lastly, transparent the fees. This CRM time and our news continuous to will these on on into more benefits instantly the evolution customers. process We're already customers from CDK's sales transmit to even acquisition tremendous as great less allow is for with same for a is to us along And people of seeing information for and we're working be fruition, customers. utilize extremely we retailing weeks makes exact our car video The there. in see process piloting our There come and to

recent our and an incredible huge X a customers applications were XX% digital. applications all In efficiency of credit XXXX, through second nearly saver. credit Another convenience for Acceleride. That's quarter is time streamlining of the Group

rather Acceleride XX% on their are uses future, dealership. basis customers complete of of just traditional Acceleride. in that calls have the action X steps Acceleride In using process, of utilizing in customers are started who dealerships the the the the Acceleride. Group other all than When penciling with now be someone This including website who everyday process, deals, any can since sales their software. done third-party Lastly, applications or sales incorporating visits may journey started and or X% will credit on on we nearly who our running report customers the

by Brazilian record in Despite ever COVID quickly profit a in units After quarter team quarter fantastic a our region's of inventories the resulted our quarter the set lean retail for sold a gross This XXXX, once across decline Turning versus history. performance first Brazil. in and in driven quarter easily quarter XXXX. XXXX, our of team cost all margins and second job lockdowns, lines tight a our again did to business of growing capitalizing additional on XX% nearly structure. as all-time most SG&A sub-XX% the profitable their in a percentage first second record of

pandemic. benefit from I rebound a overview. coming now a sheet turn over be our liquidity the and of to to We balance to will McHenry, continue CFO, out the well call sales to provide Daniel positioned Daniel?

Daniel McHenry

good and Daryl, everyone. you, morning, Thank

XX, line, and had floorplan immediate of liquidity cash of There was acquisition bringing accounts, our of million on As bringing capacity to $XXX hand we borrowing syndicated on million in $XXX also invested $XXX million. total $XXX to June liquidity million. U.S. our additional total million $XXX offset another cash

second cash of generated $XXX out cash free backing flow $XXX year-to-date million million. $XXX to after the million in CapEx. adjusted brings June's million $XX flow also flow This and quarter cash free operating of We of

XXX,XXX the shares for During approximately a repurchased of at million. $XX.X quarter, $XXX.XX of second an average total we price

share of million have program. on We remaining repurchase our authorization $XXX our

open of continue allocation cash increase While share both to our for dividend. repurchases in the the priority to our first and quarterly capital to M&A, returning form remains in an shareholders we be

all a to by cash June of facility, our June, XX. considers of of was Our X.Xx plenty hand, rent-adjusted U.S. leverage debt On at at leaving deployment. basis, capital leverage U.S. the end was ratio, syndicated for flexibility as which as X.Xx defined our reduced net credit

interest Finally, related expense. to

The million a decreased primarily of or due from $X.X Non-floorplan Our decreased rate XX% to expense million interest year. swaps interest $X.X due to a the prior XX% interest of million noncash million quarterly levels. last $X.X or year, floorplan inventory refinancing. debt $X.X year's decrease prior certain of quarterly related expense included was from to the charge bond

platform good a sheet Our priority support liquidity to never been and stronger, provides balance have growth. external our position top which of

additional turn our presentation information detail I please Earl. our to news regarding condition, schedules refer posted release as the well the website. the will financial now on For of the to attached back call over to investor as

Earl Hesterberg

corporate U.K., which the of Thank you, incremental our contribute we revenues. Daniel. development will increased our XX $XXX count to previously annual the X to July million and Related acquisition in approximately franchise in announced franchises efforts, U.K.

We ahead. months expect some announce also to U.S. in the acquisitions

continue prepared call the in prioritize concludes turn session. remarks. we progresses. mentioned, capital opportunities to the operator as our will our have we Daniel Operator? that question-and-answer process As we're to allocation now the growth begin and external year the beneficial I'll optimistic over to This

Operator

from Ward [Operator today Mike And from first Instructions] Benchmark. our question comes

Mike Ward

talked would How Last be maybe to the night inventory And news going does on an model? earnings group. more about trucks, you which does I which call, impact your forward, change type higher specifically, they order-to-build is, inventories? specific carry lower for dealer that moving great on it typically much levels tend dealer any that suggesting have pickup Ford's model, assume, towards

Earl Hesterberg

like. add would Mike, this let and Daryl Earl is I'll what he

the think would truck geography, a With we're be massive very domestics. improvement. big retailers, with our that Ford also very other big I and

models of brands in You pickup traditionally proliferation have on of trucks, to because carry those domestic of day the a particular. full-size supply pretty high

carrying I would all it really And forward. think could requirements. costs if our leaner that approach land going we inventory excited run we reduce about a system, and So be our distribution

Mike Ward

between data F&I -- the one things, of -- standpoint, a on a like the with about the gravitate than per double U.K. And model Can variable look the it it is growth looks regard? looks U.K. the a double is more the the F&I and like The more U.S. U.K. towards than the in on U.S. if the differences regional between the one other going the through biggest of you at basis. the unit that little U.S. F&I

Earl Hesterberg

there think some kind differences. I of are market Well, legal end

per be can of expect you them let the ever the So but nearly in I that. a our don't color I'll in I financial to improve contribution more little believe we equal performance on give terms U.K., Daniel unit.

Daniel McHenry

addition, in their change differences market, more cycle sector and think between vehicle that the regular we I where key particularly one in U.S. the customer the the U.K. within is our months. in is of change largely U.K. lot and XX a will the luxury about the average compete,

So look you the vehicle effectively versus similar. you'll I at whenever life the the find are of that U.S., U.K. PRUs think the the in more

Mike Ward

How to And sticky, like like one the you've be of much everything just is in is to -- third SG&A. savings it had? sounds similar performance thing And quarter. last on that the the quarter going the second that sounds

Daniel McHenry

was to what exactly much pretty say. that's yes, -- that think I I going

are of margins where change in wouldn't currently, versus quarter expect On significant our the SG&A any X. kind basis I of

Operator

And of America. from John our next question Bank Murphy comes from

John Murphy

a here run the million $XXX them. if relative I mentioned might the I coming Earl, $XXX mean acquisitions. you not to, in your you're of a the rate hearing of U.S. some That months. year. multiyear come hot are doing you've be high, that similar rating there We're is on on the year-to-date large targets, in peers, the in question run these first some around from been Just levels first than million. higher mean, street at pretty half but more

a Just will should with little where start are the conservative we just these land. understand round things in opportunistically? So acquisition more where remain going pick to it may off and how you're more about more you if to trying you and over targets curious bit Or time acquisitions? communicating going reserves inorganic about think growth

Earl Hesterberg

ability I know No, annualized the continue accretive, Clearly, as if what a in financially, to John. of frothy you the going $X billion see it's year to been. is mean. ever more to you don't revenues. have are best can course, it's do Yes, think we as I get acquisition we're market acquisitions or numeric And probably But our if targets.

keep allocation. I So for coming capital this. up we're think down. as things will going top We're continue our And to settle to to priority that

environment get able we're and to we're company on market going is normalize But going start to what's continue So be a to grow think that perceived little me I'm the financially And deals confident X. hung going target, it tax the then do to try you be a And January that hard to to too seems up start will to on putting to I do you be if may shouldn't. to a different that. you pressure externally, bit. on yourself

discipline shareholders. trying to our financial we're for keep discipline So some --

John Murphy

Acceleride, value But vehicle just that there to of maybe is the or, or used Okay. an a in Acceleride a and share existing you growth or gains unit I drive incremental particularly takes used assets? mean whole or that maybe as creating off? with should with burdening of particularly increased without there, sort walls business sweat had some of around And there's dealerships also the -- opportunity I sometimes opportunity. yourself other with then the the market a vehicles opportunity on franchised assets what outside leverage I increased the second the peers your new exist. drive is could use, say, Acceleride asset through channel focus mean question X an your

Daryl Kenningham

there's X,XXX now. we going quarter, like lot to ways And used is short acquisitions regular Daryl. we're through Acceleride. we're this might but opportunity is, today. we at doing not. of we in business The through we're our Acceleride look to through answer We're expand something where acquired certainly a that not footprint. In units And stretch that to anything yes, Acceleride see vehicle in the markets or a our in existing markets was don't I how nationwide into right us basis. that almost John, considering that it's on that, leverage some

John Murphy

just X-week and schedules packed of your over I again? or then And how to back mean pent-up seeing you're also Okay. to here. demand just recovery work your service. enough with And if mean there that is run gauge released techs service much -- I curious on What's kind is full base work a on time? we're be your to efficient lastly parts

Daryl Kenningham

we is demand Lots We what opportunity -- excuse Daryl, half of -- this again. is see see pent-up aftersales. a me, of lots strong forward. We second going for

now. the work manage that. halfway about see as are be through we X-day We that that able And many back to back capacity critical expanding our We're of to to stores our reconverting to week.

And week lots answer a yes, is I work the back of ahead. the question vengeance. with So guess, growth your short coming to is X-day

John Murphy

year and going transit sort have longer where Okay. into thoughts? signals next bottom of some conflicting mean, the mean and issue, the half over mentioned automakers I got mean that's appear Earl, I on and your visibility something manufacturers. crunch maybe months and year. would I'm through but the to vehicles the barely what sequential next better on maybe next year, year And But you are automakers, you kind sorry, that rest and rest second of be from getting vehicle, what's that that -- is some this thought there improving something one year the term, of at your it the you forecasters getting in in of just you're deliveries to mean the of your early looking they're be the bit other few view inventory -- through relief, that just so specific like inventory last new Ford's in be on the seems issue. might like new question, of I I semi-chip mean side. the a of mean, kind I very would material. this Renesas year I look vehicle then this up stepping not yet. because be what sequentially

Earl Hesterberg

Well, and Yes. getting longer and you those are, impression is like I'm longer announcements longer continuing last going do this originally that listen to keep the than John. And to I I expected. to

around of we to how And the to another emphasis going lot more question have we We are a our right the in is bottom now. bottom. level normal are bounce on that's our used put close vehicle actually reason The really bouncing long kind maintain around on vehicles. dog control the on tail to because We're can we're the of new to that. business able And the inventory part that we a business.

So getting it term. it's it that it's worse, doesn't but seem better seem doesn't in the that getting near

time new -- long up inventory I vehicles below hole at March XX,XXX and think that. it we're in bouncing And take in big around the We been inventories. created pre-COVID. a had to So X/X will fill our that's of in

any So go we inventory. to amount we've meaningful a got build start of way long to before

So to go it's clearly this going through year.

Operator

Gupta our JPMorgan. comes question Rajat from And from next

Rajat Gupta

at all F&I Great. follow-up commentary to I that car per you're basis, had around car, not including $X,XXX to GPU, on is making at on $X,XXX, looking seems of likely suggest retail inventory model not just per a the be Ford's pre-pandemic. adjusting for and their F&I. car, leaner a like a penetration order $X,XXX would math My yesterday and upfront on than bank just it the looking roughly roughly like

of expect that you're would reservation website, retain to change to their do model have any Just pull I these se move shakes just through how like leaner per commission order where through finance online that And full how to could a the out? So ultimately much model a $X,XXX $X,XXX like pay curious follow-up. of the that like curious dealer? to you consumers that we making? online probably transaction and liquid or once bank and with expect inventories, more Now OEMs

Daryl Kenningham

Rajat, this is don't stab. it change our a structure. take how exactly I I'll Daryl. really margin might know

trying more embrace. lot I I the which model to think a believe is OEMs positive of that of disciplined are supply, a

less basis, forward the the selling, desperation Honestly, only will and for which I network would for be selling. supply-side will margins a of for dealers I there and think on the long-term in be guess, Moving be health and good customers.

will And this structure kind good talked So good, how I of or be don't at like have anything know believe that. changes any it in we no any OEMs about to point. us

Rajat Gupta

the And proliferates model could Got of bank in for the it. of level a taken if this Do Got even stores OEMs? operate really a does lower lot order across more over scenario, similar like prevalent? this like You've you this volume, become level just think year. last of with you lot if it. at a an other headcount headcount

Daniel McHenry

I things a of couple there's there. think

earlier sales headcount that our in expressed see headcount in has in terms one think that I Acceleride I that's online increases and within Daryl certainly I very exception. for expectation sales, of of buoyant. and is could gain kind could the continue the business be, you reduction call And my some as to I service parts terms the sales on but that think headcount management. further would was think platforms of things technicians, traction, see and Clearly, of

Rajat Gupta

Got it. just allocation. it. lastly And capital on Got

about like for multiples frothy talked You deals. the

the M&A a You priority, could more in remains while consider buyback. hinted you that release doing

the M&A the multiples being the cash So should where into given we are? existing buyback flow in or excess being term more aggressively free near cash flow expect deployed free

Earl Hesterberg

that acquisitions meet to priority when financial our we're that clear buybacks return Well, find share it's say our I would not have hurdle. second been to able

that that So second for would execute growth we dynamic company right of be assumption be determines. operating positive if Board would that my a But externally. our priority now course, that's situation -- would our the can't

Operator

Our from from comes Stephens. question Rick next Nelson

Rick Nelson

inventory. I up decline saw during to circle big on a We would quarter. the like

enough you inventory that in sit And you think sustain we If about talk to XQ? have saw you could momentum on the supply? do where you

Earl Hesterberg

asking inventory, or Are about car used new car inventory you Rick?

Rick Nelson

Well, both.

Earl Hesterberg

quoted better they're because some sourcing to lean. lean a quarter, continuing be We're Used fairly where seen car steady new both? the established out month service are individuals the continues units lack basis. I from some You in car cars. shape, And trades that we units we've day us of up inventories new same for are a that our success we the the ended And that car and losing still inventories we're able were of focus about in. supply on to to for June. on because and be of practices drives of New to we X,XXX them -- source stay to much new we've say, and in as make expect the

Rick Nelson

Great. Also Great. in Europe...

Earl Hesterberg

you're We your breaking up. Rick, hear sorry. can't I'm question.

Rick Nelson

Sorry.

of in So OEMs happen an model agency that going U.K. you Europe, some have are Curious to direct market and engaging the seen what consumer in to with cars. the electric potential that have? implications

Earl Hesterberg

U.K. suffered OEMs. Rick, appropriate, some And the much more agency been lot that where It's have commissions the be the Yes. fleet many couple self-registered vehicles is than practices of the bad there not would had that's land a a with facilities the of with there's it distribution years, deal frankly, has model. We've real it assuming a become a of anyway. lot which and The in a and U.K. Europe same discussions, don't on quite is because, been some would couple here channel really with big you your potential a of overstaffed. designed, And than OEMs as is for it not key system, for demand-pull bad a retailer there implemented model. fixed just vehicles, by a if pre-COVID

of a agency we used acres for And on X if wouldn't be retailers. XX not land there to model. there an work and own our lot with sitting U.K. seems we're model or the So dealerships like was better that a demand-pull it's

Rick Nelson

adopt back practices? run inventory So worked past they, you've that some major in until OEMs. will model we the or yield this you for tighter fact, Do to to think

Earl Hesterberg

my the have comes discipline with push generally of course. I probability play. share that is a higher brands. into for risk market doubts, Volume brands Clearly, where Well, of there's that luxury

Operator

our question Morningstar. from And David comes next from Whiston

David Whiston

financial or I go you purely think Earlier, Acceleride. that issue wanting from you was heard don't with say just just And want is what's curious stopping that? a what to -- I I do nationwide to you

Daryl Kenningham

One of -- Daryl. this is

bought is not model is vehicles we try leverage we degree, profit brand much and significant. purchases when yourself. on still some is least other in and there out if we with brands. local better. go view understand compete that. cars that's And our view. were One are our At views, of with separate and the the ourselves most That's -- things we and to Acceleride But to a go launch do most -- use still you're the X our the of several out launch competing local markets, that, And know to And them plant. feed trying opportunity to we degree, we're that advertise we physical to a our And that's And same is our to don't then to support brands locally the great locally. efficient of capital.

continue volumes to with see stickiness So keeps current platform. our And month. our we the The more sales for keep with see growing -- now, that's every opportunity Acceleride month. where every that. much we are. We feel And so like we there's engagement inside growing, it still

further, then opportunity starts inside this ton perhaps that change, our own to inside look if a So of like markets, own stores. point, feel we David. to we'll still But to there's our start

David Whiston

don't it I doing because is those against what lots guess there's understand, within I -- if though, Okay. brands? you're aren't there your of if you own opportunity local stores, competing

Daryl Kenningham

makes brand. retailing it it Acceleride advertising not transaction tool. as is It's Though today a We're does. a retailing process, a a what separate

David Whiston

Okay.

into store. I'm used build-to-order consumers being going are when gratification they're willing American a discussion, wait what curious instant the On your to to on the thoughts just

Earl Hesterberg

the very guarantee and within a working that temporary central plates tags, functioning In consumer the can deliver way quickly that they vehicle it's days. normal held the can is high we things. U.K. you orders. and fill are generally us U.S., tells normally market by is the the does the owned American holding And to the history new at when in can conditions, operated insurance not that you get percentage much cars they that X the wait. like Well, And license can centers instantaneous of OEMs. vehicle that inventory we addressed have more In and because is generally

your the car. pay later tax can You you register when sales

It's So be the will we support going logistics retailing. to vehicles are system in where that a almost U.S. have matter of instantaneous a the the located. and just

David Whiston

Okay. the especially kind on of a hearing you're desire that or in Oklahoma from customers or And lack F-XXX of just truck to Lightning, feedback what I'm Texas, vehicle markets? in large curious, stores, get desire truck your

Earl Hesterberg

customers terrific, high stores from the our of is very interest in Feedback has Lightning. for all been Ford

David Whiston

to know XXX just raise administration a if rate. for Group rate, for I corporate give of early you in ask rough that And increase bps tax rate? I the last tax but Biden Okay. does how Daniel. it's impact curious may a the bit just question, -- estimate can probably this, every X's any the was

Daniel McHenry

at increased we think that perhaps tax anticipate The is tax to XX%. I we rate -- up U.K. go has rate to whenever also the looked could it, XX%.

So is U.K. the is XX%. that rate the and the the U.S. expectation company around I the XX% is be think on something the of tax XX%, approximately assumption blended will

Operator

for turn gentlemen, I'd like be today's And remarks. conference closing to session. with call back ladies over question-and-answer any the management we'll that, and ending to

Earl Hesterberg

quarter October. visiting We'll forward call earnings look our with in late everyone, Thanks, for joining to you third us today. on

Operator

thank we'll do We everyone that, And conclude today's joining. and with ladies gentlemen, for presentation.

may your lines. now You disconnect