Group 1 Automotive, Inc. | Interfaith Center on Corporate Responsibility

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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>Group 1 Automotive, Inc. </p>
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<strong>Year:</strong>
<p>2026 </p>
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<strong>Issue Area:</strong>
<p>Corporate Governance </p>
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<strong>Focus Area:</strong>
<p>Shareholder Rights </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>RESOLVED</strong>: Shareholders ask our Board of Directors to take the steps necessary to amend the appropriate company governing documents to give the owners of a combined 10% of our outstanding common stock the power to call a special shareholder meeting or the owners of the lowest percentage of shareholders, as governed by state law, the power to call a special shareholder meeting. Such a special shareholder meeting can be an easy to convene online shareholder meeting.</p>
<p><strong>SUPPORTING STATEMENT:</strong></p>
<p dir=”ltr”>There shall be no poison pill discriminatory rule to require ownership of shares for a specific period of time in order for shares to participate in calling for a special shareholder meeting.<br> <br>This proposal topic received between 51% and 72% support each in 2024 at Jabil, Warner Brothers Discovery, ANSYS, Vertex Pharmaceuticals and DexCom. <br><br>There is no concern that allowing 10% of shares to call for a special shareholder meeting, as called for in this proposal, is too easy. It is almost unheard of for any special shareholder meeting, called for by shareholders, to ever occur at any company even though a significant number of companies allow 10% of shareholders to call for a special shareholder meeting. <br> <br>In the vast majority of cases or in most cases, once a special meeting is called for by shareholders, the issues behind calling for a special shareholder meeting are quickly resolved.</p>
<p dir=”ltr”>To guard against the Group 1 Automotive Board of Directors and management becoming complacent GPI shareholders need the ability to call a special shareholder meeting to help the Board adopt new strategies when GPI underperforms. If GPI directors and management know that GPI shareholders can call a special shareholder meeting they will be incentivized to perform better.</p>
<p dir=”ltr”>Now could be a ripe time for this proposal since GPI stock was at a YTD 2025 loss in Q4 despite a robust stock market. </p>
<p dir=”ltr”>Plus challenging news reports regarding GPI emerged in 2025.</p>
<p dir=”ltr”>Group 1 Automotive missed analyst expectations for earnings per share in its Q3 2025 report. </p>
<p dir=”ltr”>GPI’s U.K. operations faced significant difficulties, described as a “challenging market” due to inflation, wage/insurance cost pressures, and a new Battery Electric Vehicle (BEV) mandate.<br><br>Due to the U.K. market conditions and a decision to exit the Jaguar Land Rover brand there, GPI recorded substantial impairment charges of $123 million. </p>
<p dir=”ltr”>JPMorgan downgraded GPI’s stock in July 2025 from “Overweight” to “Neutral” and reduced its price target due to concerns about GPI’s  heavy concentration and “potential for increased volatility” in the Texas market, as regional economic conditions could significantly impact growth.</p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> John Chevedden</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Chevedden Corporate Governance</span></div>
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Right of Shareholders to Call Special Meetings