Asbury Automotive Wins Preliminary Injunction Against CDK Global LLC
October 02 2024 - 4:51PM
Business Wire
Judge Directs DMS Provider to Transfer Data to
a Competitor for Asbury Pilot Program
Asbury Automotive Group (NYSE: ABG) (“Asbury”) one of the
largest automotive retail and service companies in the United
States, announced today the entry of a court order directing CDK
Global LLC (“CDK”) to provide data for four Asbury dealerships to
Tekion Corp. (“Tekion”) as part of a pilot program initiated by
Asbury at the dealerships. The court’s order followed the filing of
a lawsuit by Asbury in the Superior Court of Gwinnett County,
Georgia. Prior to the entry of the order, CDK had refused to
transfer the dealerships’ data to Tekion, which competes with CDK
in providing Dealership Management System (“DMS”) services to
automotive dealerships. DMS services are used by automotive
dealerships to manage their day-to-day business activities.
“We are pleased we can proceed with this pilot program despite
the roadblocks raised by CDK,” said Barry Cohen, Vice President and
Chief Information Officer at Asbury. “Our guests and team members
are well served when we are free to test business products that
make the car-buying and servicing experience better.”
About Asbury Automotive Group,
Inc.
Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company
headquartered in Duluth, GA, is one of the largest automotive
retailers in the U.S. In late 2020, Asbury embarked on a multi-year
plan to increase revenue and profitability strategically through
organic operations, acquisitive growth and innovative technologies,
with its guest-centric approach as Asbury’s constant North Star. As
of September 30, 2024, Asbury operated 153 new vehicle dealerships,
consisting of 202 franchises, representing 31 domestic and foreign
brands of vehicles. Asbury also operates Total Care Auto, Powered
by Landcar, a leading provider of service contracts and other
vehicle protection products, and 37 collision repair centers.
Asbury also operates Total Care Auto, Powered by Landcar, a leading
provider of service contracts and other vehicle protection
products. Asbury offers an extensive range of automotive products
and services, including new and used vehicles; parts and service,
which includes vehicle repair and maintenance services, replacement
parts and collision repair services; and finance and insurance
products, including arranging vehicle financing through third
parties and aftermarket products, such as extended service
contracts, guaranteed asset protection debt cancellation, and
prepaid maintenance. Asbury ranks 18th in the 2023 Forbes list of
America’s Best Mid-Sized Companies. Asbury is recognized as one of
America’s Fastest Growing Companies 2024 by the Financial Times,
America’s Greatest Workplaces 2023 by Newsweek, as well as one of
the Best Companies to Work For in the Retailers industry by U.S.
News & World Report.
For additional information, visit www.asburyauto.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are statements other than
historical fact, and may include statements relating to goals,
plans, objectives, beliefs, expectations and assumptions with
respect to Asbury’s lawsuit against CDK and the potential impact of
such lawsuit, projections regarding Asbury's financial position,
liquidity, results of operations, cash flows, leverage, market
position, the timing and amount of any stock repurchases, and
dealership portfolio, revenue enhancement strategies, operational
improvements, projections regarding the expected benefits of
Clicklane, management’s plans, projections and objectives for
future operations, scale and performance, integration plans and
expected synergies from acquisitions, capital allocation strategy,
business strategy. These statements are based on management's
current expectations and beliefs and involve significant risks and
uncertainties that may cause results to differ materially from
those set forth in the statements. These risks and uncertainties
include, among other things, adverse outcomes with respect to
current and future litigation and other proceedings, including,
without limitation, the lawsuit against CDK, our inability to
realize the benefits expected from recently completed transactions;
our inability to promptly and effectively integrate completed
transactions and the diversion of management’s attention from
ongoing business and regular business responsibilities; our
inability to complete future acquisitions or divestitures and the
risks resulting therefrom; any supply chain disruptions impacting
our industry and business, market factors, Asbury's relationships
with, and the financial and operational stability of, vehicle
manufacturers and other suppliers, acts of God, acts of war or
other incidents and the shortage of semiconductor chips and other
components, which may adversely impact supply from vehicle
manufacturers and/or present retail sales challenges; risks
associated with Asbury's indebtedness and our ability to comply
with applicable covenants in our various financing agreements, or
to obtain waivers of these covenants as necessary; risks related to
competition in the automotive retail and service industries,
general economic conditions both nationally and locally,
governmental regulations, legislation, including changes in
automotive state franchise laws, and Asbury's ability to execute
its strategic and operational strategies and initiatives, including
its five-year strategic plan, Asbury's ability to leverage gains
from its dealership portfolio, Asbury's ability to capitalize on
opportunities to repurchase its debt and equity securities or
purchase properties that it currently leases, and Asbury's ability
to stay within its targeted range for capital expenditures. There
can be no guarantees that Asbury's plans for future operations will
be successfully implemented or that they will prove to be
commercially successful.
These and other risk factors that could cause actual results to
differ materially from those expressed or implied in our
forward-looking statements are and will be discussed in Asbury's
filings with the U.S. Securities and Exchange Commission from time
to time, including its most recent annual report on Form 10-K and
any subsequently filed quarterly reports on Form 10-Q. These
forward-looking statements and such risks, uncertainties and other
factors speak only as of the date of this press release. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241002451003/en/
Investors & Reporters May Contact: Joe Sorice
Manager, Investor Relations (770) 418-8211 ir@asburyauto.com
Asbury Automotive (NYSE:ABG)
Historical Stock Chart
From Oct 2024 to Nov 2024
Asbury Automotive (NYSE:ABG)
Historical Stock Chart
From Nov 2023 to Nov 2024
