Group 1 Automotive announced a first this week, namely the addition of Mercedes-Benz to the company’s offerings in the Lone Star State.

The acquisition of Alex Rodriguez Mercedes-Benz in League City, Texas, a suburb of Houston, marks the first time Group 1 will provide Mercedes vehicles and service to its existing customer base of franchises serving the Houston market. 

The acquired dealership will operate as Mercedes-Benz of Clear Lake and is expected to generate $85 million in estimated annual revenues, the company said.

The business also includes the Mercedes Sprinter commercial vehicle franchise.

Hyundai Expansion in Houston

Also this week, Group 1 announced the expansion of its Hyundai operations in Houston, with the opening of an all-new South Loop Hyundai dealership facility.

South Loop Hyundai, which launched operations in July 2012, now opens the doors to its state-of-the-art sales and service facilities for Hyundai and its luxury brand, Equus. 

Group 1 also owns and operates Sterling McCall Hyundai in the Houston market.

"We are delighted to strengthen our relationship with both Mercedes-Benz USA and Hyundai Motor America while building scale in our hometown market of Houston," said Earl J. Hesterberg, Group 1 president and chief executive officer.

"Adding Mercedes-Benz of Clear Lake will enable us for the first time to provide Mercedes vehicles and service to our existing customer base of Group 1 franchises already serving over 300,000 Houstonians. 

“And our new South Loop Hyundai facility will support growth in our Hyundai vehicle and service sales, which has become a fast-growing part of our business in recent years," Hesterberg said.