UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K /A
(Amendment No. 1)

þ		ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2004

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from      to     .

United Auto Group, Inc.

Delaware		22-3086739
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
2555 Telegraph Road		48302-0954
Bloomfield Hills, Michigan		(Zip Code)
(Address of principal executive offices)

Title of each class Voting Common Stock, par value $0.0001 per share		Name of each Exchange on which registered New York Stock Exchange

     Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No o

     Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yeso No þ

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

     Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ

     Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes þ No o

     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

     The aggregate market value of the voting common stock held by non-affiliates as of June 30, 2004 was $598,414,686.

     As of March 1, 2005, there were 46,534,033 shares of voting common stock outstanding.

     Certain portions, as expressly described in this report, of the registrant’s proxy statement for the 2005 Annual Meeting of the Stockholders to be held April 14, 2005 are incorporated by reference into Part III, Items 10-14.

 

 

TABLE OF CONTENTS

Items						Page
PART I
1.				Business			1
2.				Properties			14
3.				Legal Proceedings			14
4.				Submission of Matters to a Vote of Security Holders			15
PART II
5.				Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities			15
6.				Selected Financial Data			16
7.				Management’s Discussion and Analysis of Financial Condition and Results of Operations			17
7A.				Quantitative and Qualitative Disclosures about Market Risk			31
8.				Financial Statements and Supplementary Data			32
9.				Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			32
9A.				Controls and Procedures			32
9B.				Other Information			32
PART III
10.				Directors and Executive Officers of the Registrant			33
11.				Executive Compensation			33
12.				Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters			33
13.				Certain Relationships and Related Transactions			33
14.				Principal Accountant Fees and Services			33
PART IV
15.				Exhibits and Financial Statement Schedules			33
Consent of Deloitte & Touche LLP
Consent of KPMG Audit Plc
Rule 13a-14(a)/15(d)-14(a) Certifications
Rule 13a-14(a)/15(d)-14(a) Certifications
Section 1350 Certifications

Explanatory Note

     We are filing this Form 10-K/A to change the presentation of certain floor plan notes payable information. We finance substantially all of our new and a portion of our used vehicle inventories under revolving floor plan notes payable with various lenders. Consistent with industry practice, we previously reported all cash flows arising in connection with changes in floor plan notes payable as an operating activity. In the third quarter of 2005, we restated floor plan notes payable to a party other than the manufacturer of a particular new vehicle, and all floor plan notes payable relating to pre-owned vehicles, as floor plan notes payable - non-trade, and have restated related cash flows as a financing activity to comply with guidance under SFAS No. 95, “Statement of Cash Flows.”

     The changes in presentation have no effect on net income, earnings per share, stockholder’s equity or our conclusion that our disclosure controls and procedures were effective as of December 31, 2004 however, because we are restating the financial statements included in our Form 10-K, we are also restating our financial statements for entities which became discontinued operations during the nine months ended September 30, 2005. Such changes affect Items 1, 7, 9A and 15 in this Form 10-K/A. All other information in this amendment is as of the date of the original filing and does not reflect any subsequent information or events occurring after the date of the original filing.

PART I

Item 1. Business

     We are the second largest automotive retailer in the United States as measured by total revenues and have the highest concentration of revenues from foreign and luxury brands among the publicly-traded automotive retailers. As of March 1, 2005, we owned and operated 152 franchises in the United States and 101 franchises internationally, primarily in the United Kingdom. We offer a full range of vehicle brands, with 86% of our revenues in 2004 generated from the combined sales of foreign and luxury brands such as Toyota, Honda, BMW, Lexus and Mercedes with luxury brands representing 55% of our revenues. In addition to selling new and used vehicles, we offer a full range of maintenance and repair services, and we facilitate the sale of third-party finance and insurance products, third-party extended service contracts and replacement and aftermarket automotive products.

     We benefit from our diversified revenue stream, which we believe helps to mitigate the historical cyclicality found in some other automotive sectors. Revenues from higher margin service and parts sales are typically less cyclical than retail vehicle sales, and constitute the largest part of our gross profit. The following graphic shows the percentage of our revenues by product area along with their respective contribution to our overall gross profit:

Revenue Mix		Gross Profit Mix

Business Strategy

     Our strategy is to sell and service the finest automotive brands in premium facilities. We believe offering our customers superior customer service in a premium location fosters a long-term relationship, which helps generate repeat and referral business, particularly in our higher-margin service and parts business. We believe our focus on developing a loyal customer base has helped to increase our profitability and generate additional service and parts sales. In addition, our national dealership base and international presence allows us to achieve cost savings and implement best practices, while also providing access to a broad base of potential acquisitions.

     Offer Outstanding Brands in World Class Facilities

     We have the highest concentration of revenues from foreign and luxury brands among the publicly-traded automotive retailers. We believe our brand mix will allow us to continue to improve same-store sales and gross profits, as we believe luxury and foreign brands will continue to increase market share.

     The following chart demonstrates our total revenue by brand:

     We sell and service these brands in our world-class facilities. We believe offering these outstanding brands in world-class facilities drives repeat and referral business, particularly in our higher margin service and parts operations. Where advantageous, we attempt to aggregate our

dealerships in order to build a destination location for our customers, which we believe helps to drive increased customer traffic to each of our brands at the location. This strategy also offers the potential of reduced personnel expenses, consolidated advertising and administrative expenses and the leveraging of additional operating expenses over a larger base of dealerships.

     The following is a list of our larger dealership campuses:

Location		Square Feet				Franchises
North Scottsdale, Arizona			450,000			Acura, Audi, BMW, Jaguar, Land Rover, Lincoln Mercury, MINI, Porsche, Volkswagen, Volvo
Scottsdale, Arizona			132,085			Aston Martin, Audi, Bentley, Ferrari, Jaguar, Land Rover, Lexus, Maserati, Rolls-Royce
San Diego, California			300,000			BMW, Lexus, Maybach, Mercedes-Benz, Scion, Toyota,
Fayetteville, Arkansas			122,000			Acura, Chevrolet, Honda, HUMMER, Scion, Toyota
Tyson’s Corner, Virginia			191,000			Audi, Aston Martin, Maybach, Mercedes-Benz, Porsche
Inskip, Rhode Island*			319,000			Acura, Audi, Bentley, BMW, Infiniti, Lexus, Maserati, Mercedes-Benz, Porsche, Volvo
Turnersville, New Jersey*			210,000			Acura, BMW, Chevrolet, Honda, Hyundai, Maserati, Nissan, Scion, Toyota

     Our Scottsdale 101 Auto Mall, the nation’s largest premium luxury automobile shopping destination, features ten separate showrooms and franchises with over 450,000 square feet of facilities. Typically, customers may choose from an inventory of over 1,500 new and used vehicles, and have access to approximately 250 service bays with service capacity of approximately 1,000 vehicles per day. It also features an on/off road test course where customers may experience the uniqueness of the brands offered. We will continue to evaluate other opportunities to aggregate our facilities to reap the benefits of a destination location.

     Expand Revenues at Existing Locations and Grow Higher Margin Businesses.

     We aim to grow our business through increasing same-store sales at existing dealerships and by acquiring dealerships with high growth automotive brands in highly concentrated or rapidly growing demographic areas. We also focus particularly on developing our higher margin businesses: finance, insurance and other products, service and parts sales and collision repair.

     Same-Store Sales. We believe our emphasis on improving customer service and upgrading our facilities will result in continued increases in same-store sales. We generally offer premium showrooms and displays and have recently added service bays and modernized many of our facilities. We believe these factors have helped to generate 2004 same-store retail revenue increases of 5.1% for new vehicles, 4.0% for used vehicles, 8.2% for finance and insurance and 12.6% for service and parts.

     Targeted Acquisitions. As of December 31, 2004, approximately 93% of the U.S. automotive retail market remained unconsolidated. We believe that attractive acquisition opportunities exist both in the U.S. and abroad for well-capitalized dealership groups with experience in identifying, acquiring and integrating dealerships. We seek to acquire dealerships with strategic geographic locations and significant earnings growth potential. We focus both on larger dealership operations that will benefit from our management assistance, manufacturer relations and scale of operations, as well as individual dealerships that can be effectively integrated into our existing operations.

     Finance, Insurance and Other Aftermarket Products. Each sale of a vehicle provides us the opportunity to assist in financing the sale, sell the customer a third party extended service contract or insurance product and sell other aftermarket products, such as cellular phones, alarms and protective coatings. In order to improve our finance and insurance business, we are focusing on enhancing and standardizing our salesperson training program and increasing our product offerings.

     Service and Parts and Collision Repair. In 2004, we added numerous service bays across our dealerships in an effort to expand this higher-margin segment of our business. Unlike independent service shops, our dealerships perform manufacturer warranty work which, because it is paid for by the manufacturer, is a more dependable source of repeat business. To increase this business, our dealerships track maintenance records of customers and contact them regarding dealership promotions and maintenance schedules. Warranty work accounts for approximately 25% of our service and parts revenue, with the balance being customer-pay work. We believe that our brand-mix, superior customer service and world-class facilities each contribute to the high level of customer-pay work.

     We also own 40 collision repair centers. As each of these is operated as an integral part of our dealership operations, the repair centers benefit from the dealerships’ repeat and referral business.

     Offer Outstanding Customer Service.

     Our ability to generate and maintain repeat and referral business depends on our ability to deliver superior customer service. We believe that customer satisfaction contributes directly to significant increases in same-store sales. By offering outstanding brands in world class facilities, and through “one-stop” shopping convenience, competitive pricing and our knowledgeable sales staff, we aim to establish lasting relationships with our customers, which enhances our reputation in the community and creates the opportunity for significant repeat and referral business.

     The quality of customer service provided by our dealerships’ sales and service departments is measured by customer satisfaction index (“CSI”) scores, which are derived from data accumulated by manufacturers through individual customer surveys. We rely on this data to track the performance of dealership operations and use it as a factor in determining the compensation of general managers and sales and service personnel in our dealerships. The majority of our dealerships exceeded manufacturer CSI metrics in 2004.

     Maintain Diversified Revenue Stream and Variable Cost Structure.

     We believe that our diversified revenue mix may mitigate the historical cyclicality of new vehicle sales. In addition, our variable cost structure affords us flexibility in responding to economic cycles. We believe that demand for our higher margin service and parts businesses is less affected by economic cycles than demand for new vehicles, as consumers are likely to continue to purchase used vehicles and service their vehicles in spite of difficult economic times. Our dealership operations are also diversified both in terms of the brands of vehicles they offer and geographic location, including internationally, as we operate 101 dealerships abroad, predominately in the United Kingdom.

     A significant percentage of our operating expenses are variable, such as sales compensation, floor plan interest expense (inventory-secured financing) and advertising, which we can adjust over time to reflect economic trends. Variable expenses like these can be more easily managed in difficult economic times. Currently, gross profit generated from our service and parts business absorbs a substantial portion of our total operating expenses, excluding salespersons’ compensation and advertising.

     Leverage Scale and Implement “Best Practices”.

     As one of the nation’s largest automotive retailers, we aim to eliminate redundant operating costs, such as marketing, supply and administrative costs, and take advantage of our purchasing power. Our scale also assists in managing inventory across dealerships. In addition, through our brand managers, who facilitate our relationship with each manufacturer, we leverage our industry relations to foster communication and cooperation between like brand dealerships throughout our organization.

     Our senior management and dealership management meet regularly to review the operating performance of our dealerships, examine industry trends and, where appropriate, agree on specific operating improvements. Key financial information is discussed and compared to other dealerships across all markets. This frequent interaction facilitates implementation of successful strategies throughout the organization so that each of our dealerships can benefit from the successes of our other dealerships and the knowledge and experience of our senior management.

Industry Overview

     With revenues of approximately $1 trillion per year, the automotive retail industry is the largest retail trade sector in the United States. The majority of automotive retailing sales were generated by the approximately 22,000 U.S. new franchised dealerships, producing revenues of approximately $700 billion. This accounted for over 25% of the total U.S. retail sales. The industry is highly fragmented and largely privately held, with the publicly held automotive retail groups accounting for approximately 7% of the total industry revenue.

     Of the close to $700 billion in U.S. franchised dealer aggregate annual sales, new vehicle sales represent approximately 60% and used vehicle sales represent approximately 28%. In addition to new and used vehicles, dealerships offer a wide range of higher-margin products and services, including service and repair work, replacement parts, third party extended service contracts, financing and credit insurance, which represent approximately 12% of total industry revenues.

     According to industry data, the number of U.S. franchised dealerships has declined from approximately 24,000 dealerships in 1990 to approximately 22,000 dealerships today. Although significant consolidation has already taken place, the industry today remains highly fragmented, with approximately 93% of the U.S. industry’s market share remaining in the hands of smaller regional and independent players. We believe that further consolidation in the industry is likely due to increased capital requirements of dealerships, the limited number of viable alternative exit strategies for dealership owners and the desire of certain manufacturers to strengthen their brand identity by consolidating their franchised dealerships.

     According to industry data, the United Kingdom represents one of the largest vehicle markets in Europe with approximately $125 billion in aggregate annual new vehicle, used vehicle and service and parts sales.

     There were approximately 30,000 companies selling new vehicles in the U.K in 1999, which has decreased to approximately 25,000 companies in 2003.

     New vehicle unit sales are cyclical and, historically, fluctuations are influenced by factors such as interest rates, fuel prices, unemployment, inflation, weather, the level of personal discretionary spending, credit availability and consumer confidence. However, from a profitability

perspective, automotive retailers have historically been less vulnerable than automobile manufacturers to declines in new vehicle sales. We believe this may be due to the retailers more flexible expense structure (a significant portion of the automotive retail industry’s costs are variable, relating to sales personnel, advertising and inventory finance cost) and more diversified revenue stream. In addition, automobile manufacturers may increase dealer incentives when sales are slow in part to meet production quotas which further increases the volatility in profitability for automobile manufacturers and decreases the volatility for automotive retailers.

Acquisitions

     We have completed a number of dealership acquisitions since January 2002. Our financial statements include the results of operations of the acquired dealerships from the date of acquisition.

     In March 2002, we acquired Sytner Group plc, one of the leading retailers of luxury vehicles in the United Kingdom. At that time, Sytner Group operated 62 franchises. Since March 2002, Sytner Group has acquired or been awarded 25 additional franchises and now operates 87 franchises. As of March 1, 2005, Sytner’s franchises include: Alpina, Audi, Bentley, BMW, Chrysler, Ferrari, Jaguar, Jeep, Land Rover, Lexus, Maserati, Mercedes-Benz, MINI, Porsche, Rolls Royce, Saab, smart, Toyota, Volkswagen and Volvo. Revenues attributable to Sytner Group for the years ended December 31, 2004 and 2003 were $2.6 billion and $1.7 billion, respectively.

     The following table sets forth information with respect to our current domestic dealerships acquired or opened since January 2002 and our international dealerships acquired since our purchase of Sytner Group in March 2002:

		Date Opened
Dealership		or Acquired		Location		Franchises
BMW of Austin		7/02		Austin, TX		BMW
Goodson Dodge North		7/02		Spring, TX		Dodge
Honda Bloomfield		8/02		Bloomfield Hills, MI		Honda
Landers Hummer		9/02		Benton, AR		Hummer
Landers Hummer North		9/02		Fayetteville, AR		Hummer
Cerritos Hummer		9/02		Cerritos, CA		Hummer
MINI North Scottsdale		11/02		Phoenix, AZ		MINI
Audi North Scottsdale		11/02		Phoenix, AZ		Audi
Jaguar North Scottsdale		11/02		Phoenix, AZ		Jaguar
Lincoln-Mercury North Scottsdale		11/02		Phoenix, AZ		Lincoln, Mercury
Volkswagen North Scottsdale		11/02		Phoenix, AZ		Volkswagen
Lincoln-Mercury Volvo of Tulsa		12/02		Tulsa, OK		Lincoln, Mercury, Volvo
Aston Martin Tysons		3/03		Vienna, VA		Aston Martin
Pioneer Ford West		4/03		Goodyear, AZ		Ford
Inskip Auto Center		4/03		Warwick, RI		Acura, Audi, Bentley, BMW, Infiniti, Lexus, Mercedes-Benz, Porsche and Volvo
Goodson Chrysler North		7/03		Spring, TX		Chrysler
Goodson Jeep North		7/03		Spring, TX		Jeep
Maserati of Warwick		12/03		Warwick, RI		Maserati
Penske Cadillac South Bay		1/04		Torrance, CA		Cadillac
Maserati of Turnersville		1/04		Turnersville, NJ		Maserati
Maserati of Tulsa		2/04		Tulsa, OK		Maserati
Penske Hummer South Bay		4/04		Torrance, CA		Hummer
Mercedes-Benz of Chandler		7/04		Chandler AZ		Mercedes-Benz
Ferrari Maserati of Central New Jersey		7/04		Edison, NJ		Ferrari, Maserati
Capitol Honda		8/04		San Jose, CA		Honda
Honda North		8/04		Clovis, CA		Honda
Marin Honda		8/04		Corte Madera, CA		Honda
Los Gatos Acura		8/04		Los Gatos, CA		Acura
Sunnyvale Acura		8/04		Sunnyvale, CA		Acura
Maserati of Cleveland		8/04		Bedford, OH		Maserati
Hyundai of Waterford		11/04		Waterford, MI		Hyundai
Honda Mall of Georgia		1/05		Buford, GA		Honda
International
Mercedes-Benz of Cheltenham and Gloucester		7/02		Gloucester, England
Mercedes-Benz of Swindon		7/02		Wiltshire, England		Mercedes-Benz

		Date Opened
Dealership		or Acquired		Location		Franchises
Mercedes-Benz of Bath		7/02		Bath, England		Mercedes-Benz
Tollbar Twickenham		9/02		Middlesex, England		Volvo
smart of Milton Keynes		2/03		Milton Keynes, England		smart
Sytner Rolls Royce Motor Cars		5/03		Cheshire, England		Rolls Royce
Porsche Centre Silverstone		5/03		Northamptonshire,		Porsche
				England
Lexus Birmingham		6/03		West Midlands, England		Lexus
Toyota World Weston-Super-Mare		7/03		Somerset, England		Toyota
Toyota World Bristol North		7/03		Bristol, England		Toyota
Toyota World Bristol Central		7/03		Bristol, England		Toyota
Lexus Bristol		7/03		Bristol, England		Lexus
Guy Salmon Land Rover Stockport		7/03		Cheshire, England		Land Rover
Sytner Harold Wood		8/03		Essex, England		BMW
Sytner Chigwell		8/03		Essex, England		BMW
Bentley Birmingham		9/03		Birmingham, England		Bentley
Mercedes-Benz of Northampton		10/03		Northampton, England		Mercedes-Benz
Mercedes-Benz of Bedford		10/03		Bedfordshire, England		Mercedes-Benz
Bradford Audi		10/03		Yorkshire, England		Audi
Toyota World Newport		11/03		Newport, Wales		Toyota
Toyota World Cardiff		11/03		Cardiff, Wales		Toyota
Toyota World Bridgend		11/03		Bridgend, Wales		Toyota
Lexus Cardiff		11/03		Cardiff, Wales		Lexus
Kings Cheltenham & Gloucester		5/04		Gloucester,		Chrysler Jeep
				England
West London Audi		7/04		Middlesex, England		Audi
Reading Audi		7/04		Berkshire, England		Audi
Porsche Centre Glasgow		7/04		Strathclyde, Scotland		Porsche
Porsche Centre Edinburgh		7/04		Lothian, Scotland		Porsche
Mayfair Audi		7/04		London, England		Audi
Guildford Audi		7/04		Surrey, England		Audi
Graypaul Edinburgh		7/04		Lothian, Scotland		Ferrari, Maserati
Bentley Edinburgh		7/04		Lothian, Scotland		Bentley
Aston Green Audi		7/04		Berkshire, England		Audi
Tamsen GmbH (Bremen)		7/04		Bremen, Germany		Ferrari, Maserati, Aston Martin, Rolls Royce and Bentley
Tamsen GmbH (Hamburg)		7/04		Hamburg, Germany		Ferrari, Maserati, Aston Martin, Rolls Royce and Bentley
Toyota World Tamworth		10/04		Staffordshire, England		Toyota
Harrogate Audi		10/04		Harrogate, England		Audi

     In January 2005, we purchased the remaining 50% interest of Tulsa Auto Collection, a group of dealerships in Tulsa, Oklahoma owned indirectly by Ford Motor Company consisting of six franchises representing the Ford, Jaguar, Lincoln and Mercury brands. Since January 2002, we also have divested 38 franchises. We expect to continue to pursue acquisitions and related transactions in the future, although there can be no assurance that we will succeed in this strategy.

Dealership Operations

     Franchises. The following charts reflect our franchises by location and our dealership mix by franchise:

Franchise Locations						Franchises by Brand
Location		Franchises				Franchise		U.S.				Intl.				Total
Arizona			21			Daimler Chrysler			23				17				40
Arkansas			15			Toyota/Lexus			19				15				34
California			16			Ford/PAG			22				18				40
Connecticut			4			BMW/MINI			9				18				27
Florida			7			General Motors			23				1				24
Georgia			5			Honda/Acura			23				1				24
Indiana			2			Nissan/Infiniti			10				—				10
Michigan			7			Audi			5				10				15
Mississippi			2			Porsche			4				4				8
New Jersey			16			Others			14				17				31
New York			3			Total			152				101				253

Franchise Locations
Location		Franchises
North Carolina			3
Ohio			8
Oklahoma			8
Puerto Rico			9
Rhode Island			10
South Carolina			2
Tennessee			3
Texas			6
Virginia			5
Total Domestic			152
United Kingdom			87
Germany			10
Brazil			4
Total Foreign			101
Total Worldwide			253

     Management. Each dealership or group of dealerships has independent operational and financial management responsible for day-to-day operations. We believe experienced local managers are better qualified to make day-to-day decisions concerning the successful operation of a dealership and can be more responsive to our customers’ needs. We seek local dealership management that not only has experience in the automotive industry, but also is familiar with the local dealership’s market. Our regional management oversees operations at the individual dealerships and supports the dealerships operationally and administratively.

     New Vehicle Sales. In 2004, we sold 168,842 new vehicles which generated 59% of our revenue and 34% of our gross profit. As of March 1, 2005, we sold over forty brands of domestic and import family, sports and luxury cars, light trucks and sport utility vehicles through 253 franchises in 20 states, Puerto Rico, the U.K., Germany and Brazil. As of March 1, 2005, we sold the following brands: Acura, Alpina, Aston Martin, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ferrari, Ford, GMC Truck, Honda, Hummer, Hyundai, Infiniti, Jaguar, Jeep, Land Rover, Lexus, Lincoln-Mercury, Lotus, Maybach, Mazda, Maserati, Mercedes Benz, MINI, Nissan, Pontiac, Porsche, Rolls Royce, Bentley, SAAB, Scion, smart, Suzuki, Toyota, Volvo and Volkswagen.

     Our customers finance their purchases of new (and used) vehicles through both traditional financing sources as well as through consumer automobile leasing companies. Lease transactions are typically provided to consumers by short term financing sources. Leases also give us the opportunity to obtain repeat business from customers on a more regular basis than traditional purchase transactions.

     Our new vehicles are acquired by our dealerships directly from the manufacturer. We strive to maintain exemplary relations with the automotive manufacturers, which is assisted by our long term presence in the automotive retail market, the reputation of our management team, our dedication to building and maintaining positive relationships with our manufacturers, and our consistent high sales volume from our dealerships. Our dealerships finance the purchase of new vehicles from the manufacturers through floor plan financing provided by various manufacturers’ captive finance companies.

     Used Vehicle Sales. In 2004, we sold 82,836 used vehicles which generated 29% of our revenue and 12% of our gross profit. We generally acquire used vehicles from auctions open only to authorized new vehicle dealers, public auctions, trade-ins in connection with new purchases and lease expirations or terminations. Leased vehicles returned to the finance sources at the end of the lease provide us a market of low mileage, late model vehicles for our used vehicle sales operations. We clean, repair and recondition, as necessary, generally at our own service facilities, all used vehicles we acquire for resale. Used vehicles account for a significant portion of the revenues at each of our dealerships.

     We believe growth opportunities relating to used vehicle sales exist due to decreased customer concerns regarding used vehicles as more well respected dealerships are engaging in the sale of high-quality, low-mileage, late model used vehicles, coupled with the proliferation of manufacturer certification processes for these vehicles. To improve customer confidence in our used vehicle inventory, each of our dealerships participates in all available manufacturer certification processes for used vehicles. If certification is obtained, the used vehicle owner is typically provided benefits and warranties similar to those offered to new vehicle owners by the applicable manufacturer. Since warranty work can only be performed at franchised dealerships, we believe we may benefit from the opportunity to retain these customers as service and parts customers. In addition, we offer for sale third-party extended service contracts on all of our used vehicles.

     Some vehicles acquired through trade-ins or originally intended for sale in our used vehicle operations are instead sold via auction. Through our scale in many markets, we have implemented closed-bid auctions that allow us to bring a large number of vehicles from different franchises to a central market for other dealers or wholesalers to purchase. We believe this strategy has resulted in greater operating efficiency and helped to reduce costs associated with maintaining optimal inventories.

     Vehicle Finance, Extended Service and Insurance Sales. Finance and insurance sales represented 2% of our revenue and 16% of our gross profit in 2004. At our customers’ option, our dealerships arrange third party financing for our customers’ vehicle purchases. As compensation we receive a portion of the cost of financing paid by the customer for each financed sale; however, we generally are limited in the amount of revenue per transaction we may receive from certain finance products by these finance companies. While these services are generally non- recourse to us, we are subject to chargebacks in certain circumstances such as default under a financing arrangement or other circumstances.

We provide training to our finance and insurance personnel to help assure compliance with internal policies and procedures, as well as applicable state regulations. We also offer for sale other aftermarket products, such as Sirius Satellite Radio®, cellular phones, alarms and protective coatings.

     We also offer our customers various vehicle warranty and extended protection products, including extended warranties, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), lease “wear and tear” insurance and theft protection products at competitive prices. The vehicle warranty and extended protection products that our stores currently offer to customers are underwritten and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries. We may also be subject to chargebacks in connection with sale of certain of these products.

     Service and Parts Sales. Service and parts sales represented 10% of our revenue and 38% of our gross profit in 2004. We generate service and parts sales at each of our dealerships, primarily relating to the vehicle models sold at that dealership. We perform both warranty and non-warranty work. Our service and parts revenues have increased each year, in large part due to our increased service capacity, coupled with the increasingly complex technology used in vehicles, which makes it difficult for independent repair facilities to maintain and repair today’s automobiles. As part of our agreements with our manufacturers, we obtain all equipment required by the manufacturer and needed to service and maintain each make of vehicle sold at any particular dealership.

     A goal of each of our dealerships is to make each vehicle purchaser a customer of our service and parts department. Our dealerships keep detailed records of our customers’ maintenance and service history and many dealerships send reminders to customers when vehicles are due for periodic maintenance or service. Many of our dealerships also have extended evening and weekend service hours to add convenience for our customers. We also operate 40 collision repair centers, each of which is operated as an integral part of our dealership operations.

     Internet Presence. In order to attract customers and enhance our customer service, each of our dealerships maintains its own website, and our corporate website, www.unitedauto.com, provides a link to each of our dealership websites allowing consumers to source information and communicate directly with our dealerships locally. During 2004, we established a relationship with Reynolds Web Services, a division of The Reynolds & Reynolds Company, to provide website design, hosting, and consulting services for the majority of the company’s websites. Reynolds Web Services’ will assist us in the area of on-line automotive merchandising. Each of our U.S. dealership websites are presented in common formats (except where otherwise required by manufacturers) which helps to minimize costs and provide a consistent image across dealerships. In addition, many automotive manufacturers’ websites provide links to our dealerships’ websites.

     According to industry analysts, the majority of car buyers nationwide will consult the Internet for new and pre-owned automotive information. The Internet is generating better-informed consumers and improving the efficiency of the sales process. Using our dealership websites, consumers can electronically search our inventory for vehicles that meet their model and feature requirements and price range. Our websites provide detailed information for the entire purchase process, including detailed information including, photos, prices, promotions, specifications, reviews, tools to schedule service appointments and financial applications. We believe these features make it easier for consumers to meet all of their automotive research needs. Customers can contact dedicated Internet sales consultants on line via www.unitedauto.com or the dealership websites.

     We have also partnered with CarsDirect.com, a leading online car buying service that provides consumers with a full menu of research features. Consumers can also use CarsDirect.com to either buy a vehicle online or be sent to a network of dealerships in their market, including most of our dealerships. Research features include detailed safety ratings and reviews, financing, extended warranties, insurance quotes, anti-theft products and trade-in appraisals.

     The following is a list of all of our dealerships:

U.S. DEALERSHIPS

INTERNATIONAL DEALERSHIPS

     We also own approximately 50% of the following international dealerships:

GERMANY		MEXICO
Autohaus Nix (Wachtersbach) (Toyota, Lexus)		Toyota de Aguascalientes
Autohaus Nix (Offenbach) (Toyota, Lexus)		Toyota de Monterrey
Autohaus Nix (Frankfurt)(Toyota, Lexus)
Autohaus Reisacher (Memminger)(BMW, MINI)
Autohaus Reisacher (Krumbach)(BMW)
Autohaus Reisacher (Vohringer) (BMW)

Management Information Systems

     We consolidate financial, accounting and operational data received from our domestic dealers through an exclusive private communications network. The data from these dealers is gathered and processed through individual dealer management systems. All of our domestic dealerships use management system hardware and software from ADP, Inc. or Reynolds and Reynolds however, we are transitioning our dealerships to a sole-source Reynolds and Reynolds platform in an effort to reduce costs. Each dealership is allowed to tailor the operational capabilities of that system locally, but we require that they follow our standardized accounting procedures.

     Our private communication network allows us to extract and aggregate information from the two systems in a consistent format to generate consolidating financial and operational data. The system also allows us to access detailed information for each dealership in the U.S. individually, as a group, or on a consolidated basis. Information we can access includes, among other things, inventory, cash, unit sales, the mix of new and used vehicle sales and sales of aftermarket products and services. Our ability to access this data allows us to continually analyze these dealerships’ operating results and financial position so as to identify areas for improvement. Our technology also enables us to quickly integrate dealerships or dealership groups we acquire in the U.S.

     Our foreign dealership financial, accounting and operational data is processed through dealer management systems provided by a number of local software providers. Financial and operational information is aggregated following U.S. policies and accounting requirements and in our U.S. reporting format to ensure consistency of results among our worldwide operations.

Marketing

     We believe that our marketing programs have contributed to our sales growth. Our advertising and marketing efforts are focused at the local market level, with the aim of building our retail vehicle business, as well as repeat sales and service business. We utilize many different media for our marketing activities, including newspapers, magazines, television, radio and the Internet. We also assist our local management in running special marketing events to generate sales such as tent sales or local product placement. Automobile manufacturers supplement our local and regional advertising efforts by producing large advertising campaigns to support their brands, promote attractive financing packages and draw traffic to local area dealerships. We believe that our scale has enabled us to obtain favorable terms and other valuable concessions from suppliers and advertising media and should enable us to realize continued cost savings in marketing. In an effort to realize increased efficiencies, we are focusing on common marketing metrics and business practices across our company, as well as negotiating enterprise arrangements for many marketing resources.

Agreements with Vehicle Manufacturers

     Each of our dealerships operates under separate franchise agreements with the manufacturers of each brand of vehicle sold at that dealership. These agreements contain provisions and standards governing almost every aspect of the operations of the dealership, including ownership, management, personnel, training, maintenance of minimum working capital and in some cases net worth, maintenance of minimum lines of credit, advertising and marketing, facilities, signs, products and services, acquisitions of other dealerships (including restrictions on how many dealerships can be acquired or operated in any given market), inventory, warranties offered to customers, maintenance of minimum amounts of insurance, achievement of minimum customer service standards, information systems and monthly financial reporting. Typically, the dealership principal and/or the owner of a dealership may not be changed without the manufacturer’s consent.

     In exchange for complying with these provisions and standards, we are granted the non-exclusive right to sell the manufacturer’s brand of vehicles and related parts and services at our dealerships. The agreements also grant us a non-exclusive license to use each manufacturer’s trademarks, service marks and designs in connection with our sales and service of its brands at our dealerships. Some of our franchise agreements expire after a specified period of time, ranging from one to five years. The agreements also permit the manufacturer to terminate or not renew the agreement for a variety of causes, including failure to adequately operate the dealership, insolvency or bankruptcy, impairment of the dealer’s reputation or financial standing, changing the dealership’s management, owners or location without consent, sales of the dealership’s assets without consent, failure to maintain adequate working capital or floor plan financing, changes in the dealership’s financial or other condition, failure to submit information to the manufacturer on a timely basis, failure to have any permit or license necessary to operate the dealership, and material breaches of other provisions of the agreement. These termination rights are subject to applicable state franchise laws that limit a manufacturer’s right to terminate a franchise. Many agreements grant the manufacturer a security interest in the vehicles and/or parts sold by the manufacturer to the dealership.

     Our agreements with manufacturers usually give the manufacturers the right, in some circumstances (including upon a merger, sale, or change of control of the Company, or in some cases a material change in our business or capital structure), to acquire from us, at fair market value, the dealerships that sell the manufacturers’ brands. In particular, our agreement with General Motors Corporation provides that, upon a proposed sale of 20% or more of our voting stock to any other person or entity (other than for passive investment) or another manufacturer, an extraordinary corporate transaction (such as a merger, reorganization or sale of a material amount of assets) or a change of control of our board of directors, General Motors has the right to acquire at fair market value, all assets, properties and business of any General Motors dealership owned by us. In addition, General Motors has a right of first refusal if we propose to sell any of our General Motors dealerships to a third party. Some of our agreements with other major manufacturers contain provisions similar to the General Motors provisions. Some of the agreements also prohibit us from pledging, or impose significant limitations on our ability to pledge, the capital stock of some of our subsidiaries to lenders.

Competition

     For new vehicle sales, we compete primarily with other franchised dealers in each of our marketing areas. We do not have any cost advantage in purchasing new vehicles from the manufacturer, and typically we rely on our world-class facilities, advertising and merchandising, management experience, sales expertise, service reputation and the location of our dealerships to sell new vehicles. Each of our markets may include a number of well-capitalized competitors that also have extensive automobile dealership managerial experience and strong retail locations and facilities. We compete with dealers that sell the same brands of new vehicles that we sell and with dealers that sell other brands of new vehicles that we do not represent in a particular market. Our new vehicle dealership competitors have franchise agreements with the various vehicle manufacturers and, as such, generally have access to new vehicles on the same terms as us. In recent years, automotive dealers have also faced increased competition in the sale of new vehicles from on-line purchasing services and warehouse clubs. Due to lower overhead and sales costs, these companies may be capable of operating on smaller gross profit margins and offering lower sales prices than franchised dealers.

     For used vehicle sales, we compete with other franchised dealers, independent used vehicle dealers, automobile rental agencies, on-line purchasing services, private parties and used vehicle “superstores” for supply and resale of used vehicles.

     We believe that the principal competitive factors in vehicle sales are the marketing campaigns conducted by manufacturers, the ability of dealerships to offer a wide selection of the most popular vehicles, the location of dealerships and the quality of customer service. Other competitive factors include customer preference for particular brands of automobiles, pricing (including manufacturer rebates and other special offers) and warranties. We believe that our dealerships are competitive in all of these areas.

     We compete with other franchised dealers to perform warranty repairs and with other automotive dealers, franchised and unfranchised service center chains, and independent garages for non-warranty repair and routine maintenance business. We compete with other automotive dealers, service stores and auto parts retailers in our parts operations. We believe that the principal competitive factors in parts and service sales are price, the use of factory-approved replacement parts, facility location, the familiarity with a manufacturer’s brands and models and the quality of customer service. A number of regional or national chains offer selected parts and services at prices that may be lower than our prices.

     According to various industry sources, the automotive retail industry is currently served by approximately 22,000 franchised automotive dealerships, over 50,000 independent used vehicle dealerships and individual consumers who sell used vehicles in private transactions. Several

other public companies have established national or regional automotive retail chains. Additionally, vehicle manufacturers have historically engaged in the retail sale and service of vehicles, either independently or in conjunction with their franchised dealerships, and may do so on an expanded basis in the future, subject to various state laws that restrict or prohibit manufacturer ownership of dealerships.

     We believe that a growing number of consumers are utilizing the Internet, to differing degrees, in connection with the purchase of vehicles. Accordingly, we may face increased pressures from on-line automotive websites, including those developed by automobile manufacturers and other dealership groups. Consumers use the Internet to compare prices for vehicles and related services, which may result in reduced margins for new vehicles, used vehicles and related services.

Employees and Labor Relations

     As of December 31, 2004, we employed approximately 13,000 people, approximately 340 of whom are covered by collective bargaining agreements with labor unions. We consider our relations with our employees to be satisfactory. Our policy is to motivate our key managers through, among other things, variable compensation programs tied principally to dealership profitability and our equity incentive compensation plans. Due to our reliance on vehicle manufacturers, we may be adversely affected by labor strikes or work stoppages at the manufacturers’ facilities.

Regulation

     We operate in a highly regulated industry. A number of regulations affect our business of marketing, selling, financing and servicing automobiles. We actively make efforts to assure compliance with these regulations. Under the laws of jurisdictions in which we currently operate or into which we may expand, we typically must obtain a license in order to establish, operate or relocate a dealership or operate an automotive repair service, including dealer, sales, finance and insurance-related licenses issued by relevant authorities. These laws also regulate our conduct of business, including our advertising, operating, financing, employment and sales practices. Other laws and regulations include franchise laws and regulations, extensive laws and regulations applicable to new and used motor vehicle dealers, as well as wage-hour, anti-discrimination and other employment practices laws.

     Our operations may also be subject to consumer protection laws known in the U.S. as “Lemon Laws”. These laws typically require a manufacturer or dealer to replace a new vehicle or accept it for a full refund within a period of time after initial purchase if the vehicle does not conform to the manufacturer’s express warranties and the dealer or manufacturer, after a reasonable number of attempts, is unable to correct or repair the defect. Various laws require various written disclosures to be provided on new vehicles, including mileage and pricing information.

     Imported automobiles may be subject to customs duties and, in the ordinary course of our business, we may, from time to time, be subject to claims for duties, penalties, liquidated damages, or other charges.

     Our financing activities with customers are subject to federal truth-in-lending, consumer leasing equal credit opportunity and similar regulations as well as motor vehicle finance laws, installment finance laws, insurance laws, usury laws and other installment sales laws. Some jurisdictions regulate finance fees that may be paid as a result of vehicle sales. In the past several years, private plaintiffs and state attorney generals in the U.S. have increased their scrutiny of advertising, sales, and finance and insurance activities in the sale and leasing of motor vehicles.

     In the U.S., we also benefit from the protection of numerous state dealer laws generally which provide that a manufacturer may not terminate or refuse to renew a franchise agreement unless it has first provided the dealer with written notice setting forth good cause and stating the grounds for termination or non-renewal. Some state dealer laws allow dealers to file protests or petitions or to attempt to comply with the manufacturer’s criteria within the notice period to avoid the termination or non-renewal. Europe generally does not have these laws and, as a result, our European operations operate without these protections.

Environmental Matters

     We are subject to a wide range of environmental laws and regulations, including those governing discharges into the air and water, the operation and removal of aboveground and underground storage tanks, the use, handling, storage and disposal of hazardous substances and other materials and the investigation and remediation of contamination. As with automotive dealerships generally, and service, parts and body shop operations in particular, our business involves the generation, use, handling and contracting for recycling or disposal of hazardous or toxic substances or wastes, including environmentally sensitive materials such as motor oil, waste motor oil and filters, transmission fluid, antifreeze, refrigerant, waste paint and lacquer thinner, batteries, solvents, lubricants, degreasing agents, gasoline and diesel fuels. Similar to many of our competitors, we have incurred and will continue to incur, capital and operating expenditures and other costs in complying with such laws and regulations.

     Our operations involving the management of hazardous and other environmentally sensitive materials are subject to numerous requirements. Our business also involves the operation of storage tanks containing such materials. Storage tanks are subject to periodic testing, containment, upgrading and removal under applicable law. Furthermore, investigation or remediation may be necessary in the event of leaks or other discharges from current or former underground or aboveground storage tanks. In addition, water quality protection programs govern certain discharges from some of our operations. Similarly, certain air emissions from our operations, such as auto body painting, may be subject to relevant laws. Various health and safety standards also apply to our operations.

     We may also have liability in connection with materials that were sent to third-party recycling, treatment, and/or disposal facilities under the U.S. Comprehensive Environmental Response, Compensation and Liability Act, or CERCLA, and comparable statutes. These statutes impose liability for investigation and remediation of contamination without regard to fault or the legality of the conduct which contributed to the contamination. Responsible parties under these statutes may include the owner or operator of the site where the contamination occurred and companies that disposed or arranged for the disposal of the hazardous substances released at these sites.

     We believe that we do not have any material environmental liabilities and that compliance with environmental laws and regulations will not, individually or in the aggregate, have a material adverse effect on our results of operations, financial condition or cash flows. However, soil and groundwater contamination is known to exist at certain of our current or former properties. Further, environmental laws and regulations are complex and subject to change. In addition, in connection with our acquisitions, it is possible that we will assume or become subject to new or unforeseen environmental costs or liabilities, some of which may be material. Compliance with current, amended, new or more stringent laws or regulations, stricter interpretations of existing laws or the future discovery of environmental conditions could require additional expenditures by us, and such expenditures could be material.

Insurance

     Due to the nature of the automotive retail industry, automotive retail dealerships generally require significant levels of insurance covering a broad variety of risks. The business is subject to substantial risk of property loss due to the significant concentration of property values at dealership locations, including vehicles and parts. Other potential liabilities arising out of our operations involve claims by employees, customers or third parties for personal injury or property damage and potential fines and penalties in connection with alleged violations of regulatory requirements.

     Accordingly, we have purchased liability and property insurance subject to specified deductibles and loss retentions. We also purchase umbrella and excess insurance to provide insurance in excess of our primary liability insurance. The level of risk we retain may change in the future as insurance market conditions or other factors affecting the economics of purchasing insurance change. Although we have, subject to limitations and exclusions, substantial insurance, we may be exposed to uninsured or underinsured losses that could have a material adverse effect on our results of operations, financial condition or cash flows.

Available Information

     For selected financial information concerning our domestic and international sales and assets, see note 15 to our consolidated financial statements included in Item 8 of this report. For a discussion of the risk factors applicable to us, see exhibit 99.1 to this annual report on Form 10-K/A. Our internet website address is www.unitedauto.com. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to section 13(a) or 15(d) of the Exchange Act are available free of charge through our website under the tab “Investor Relations” as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission. We also make available on our website under the tab “Investor Relations” copies of materials regarding our corporate governance policies and practices, including our Corporate Governance Guidelines; our Code of Business Ethics; and the charters relating to the committees of our Board of Directors. You also may obtain a printed copy of the foregoing materials by sending a written request to: Investor Relations, United Auto Group, Inc., 2555 Telegraph Road, Bloomfield Hills, MI 48302. The information on or linked to our website is not part of this document. We are incorporated in the State of Delaware and began dealership operations in October 1992. We submitted to the New York Stock Exchange its required annual CEO certification in 2004 without qualification and have filed all required certifications under section 302 of the Sarbanes-Oxley Act as exhibits to this annual report on Form 10-K/A relating to 2004.

Item 2. Properties

     We seek to structure our operations so as to minimize the ownership of real property. As a result, we lease or sublease substantially all of our dealerships and other facilities. These leases are generally for a period of between five and 20 years and are typically structured to include renewal options for an additional five to ten years in our favor. We lease office space in Bloomfield Hills, Michigan, Secaucus, New Jersey and Leicester, England for our administrative headquarters and other corporate related activities. We believe that our facilities are sufficient for our needs and are in good repair.

Item 3. Legal Proceedings

     From time to time, we are involved in litigation relating to claims arising out of our operations in the normal course of business. Such issues may relate to litigation with customers, employment related lawsuits, class action lawsuits, purported class action lawsuits and actions brought by governmental authorities. We are not party to any legal proceedings, including class action lawsuits to which we are a party that, individually or in the aggregate, are reasonably expected to have a material adverse effect on our results of operations, financial condition or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our results of operations, financial condition or cash flows.

Item 4. Submission of Matters to a Vote of Security-Holders

     No matter was submitted to a vote of our security holders during the fourth quarter of the year ended December 31, 2004.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchase of Equity Securities

     Our common stock is traded on the New York Stock Exchange under the symbol “UAG”. As of February 22, 2005, there were 237 holders of record of our common stock.

     The following table shows the high and low per share sales prices of our common stock as reported on the New York Stock Exchange Composite Tape for each quarter of 2004 and 2003.

		High				Low
2004:
First Quarter		$	32.05			$	25.95
Second Quarter			32.85				26.62
Third Quarter			30.83				22.90
Fourth Quarter			30.35				25.08
2003:
First Quarter		$	13.63			$	9.81
Second Quarter			22.43				11.38
Third Quarter			26.30				20.93
Fourth Quarter			32.02				23.10

     We paid our first cash dividend on our common stock on December 1, 2003 and paid additional dividends on March 1, 2004, June 1, 2004 and September 1, 2004. These dividends were in the amount of ten cents per share. We also paid a dividend of eleven cents per share on December 1, 2004. Future quarterly or other cash dividends will depend upon our earnings, capital requirements, financial condition, restrictions in any existing indebtedness and other factors considered relevant by the Board of Directors.

     Our credit agreement with DaimlerChrysler Services North America, LLC as agent, and the indenture governing our 9 ⁵ / 8 % senior subordinated notes each contain certain limitations on our ability to pay dividends. See Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources.” We are a holding company whose assets consist primarily of the direct or indirect ownership of the capital stock of our operating subsidiaries. Consequently, our ability to pay dividends is dependent upon the earnings of our subsidiaries and their ability to distribute earnings and other advances and payments to us. Also, pursuant to the automobile franchise agreements to which our dealerships are subject, all dealerships are required to maintain a certain amount of working capital, which could limit our subsidiaries’ ability to pay us dividends.

Item 6. Selected Financial Data

     The following table sets forth our selected historical consolidated financial and other data as of and for each of the five years in the period ended December 31, 2004, which has been derived from our audited consolidated financial statements. During the periods presented, we made a number of acquisitions, each of which has been accounted for using the purchase method of accounting. Accordingly, our financial statements include the results of operations of the acquired dealerships from the date of acquisition. As a result of the acquisitions, our period to period results of operations vary depending on the dates of the acquisitions and this selected financial data is not necessarily indicative of our future results. During 2004, 2003 and 2002, we sold certain dealerships which have been treated as discontinued operations in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 144. You should read this selected consolidated financial data in conjunction with our audited consolidated financial statements and related footnotes included elsewhere in this report.

		As of and for the Years Ended December 31, (1)
		2004(2)				2003(3)				2002(4)				2001(5)				2000(5)
		(in millions, except per share data)
Consolidated Statement of Income Data:
Total revenues		$	9,384.7			$	7,968.6			$	6,499.6			$	4,926.1			$	3,735.8
Gross profit		$	1,382.0			$	1,156.7			$	939.8			$	691.7			$	527.9
Income from continuing operations		$	111.2			$	84.1			$	57.8			$	36.3			$	23.4
Net income		$	111.7			$	82.9			$	62.2			$	44.7			$	30.0
Income from continuing operations per diluted common share		$	2.44			$	2.03			$	1.40			$	1.06			$	0.79
Net income per diluted common share		$	2.45			$	2.00			$	1.51			$	1.31			$	1.02
Shares used in computing diluted share data			45.6				41.4				41.2				34.2				29.4
Balance Sheet Data:
Total assets		$	3,532.8			$	3,144.2			$	2,690.3			$	1,946.6			$	1,762.7
Floor plan notes payable (including non-trade)		$	1,197.5			$	1,051.2			$	789.0			$	492.4			$	537.4
Total debt (excluding floor plan notes payable)		$	586.3			$	651.7			$	665.8			$	555.4			$	418.1
Total stockholders’ equity		$	1,075.0			$	828.4			$	704.4			$	515.7			$	461.7

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

     This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. See “Forward Looking Statements.”

     Subsequent to the issuance of the Company’s December 31, 2004 financial statements, the Company’s management determined that certain information in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows should be restated and reclassified for all periods presented to comply with the guidance under Statement of Financial Accounting Standards (“SFAS”) No. 95, “Statement of Cash Flows.” Floor plan notes payable to a party other than the manufacturer of a particular new vehicle, and all floor plan notes payable relating to pre-owned vehicles, have been reclassified as floor plan notes payable — non-trade on the Consolidated Balance Sheets, and related cash flows have been reclassified from operating activities to financing activities on the Consolidated Statement of Cash Flows. Consistent with industry practice, the Company previously reported all cash flow information relating to floor plan notes payable as operating cash flows. In addition, the Company has made certain additional changes relating to cash flows from discontinued operations and activity under the U.S. Credit Agreement to conform to the presentation in its September 30, 2005 financial statements. This Management’s Discussion and Analysis of Financial Condition and Results of Operations has been updated for the effects of the restatement and for the effects of restating our financial statements for entities which became discontinued operations during the nine months ended September 30, 2005.

Overview

     We are the second largest automotive retailer in the United States as measured by total revenues. As of March 1, 2005, we owned and operated 152 franchises in the United States and 101 franchises internationally, primarily in the United Kingdom. We offer a full range of vehicle brands; however, 86% of our revenues in 2004 came from the combined sales of foreign and luxury brands such as Toyota, Honda, BMW, Lexus and Mercedes. In 2004, luxury brands represented 55% of our revenues. In addition to selling new and used vehicles, we generate higher-margin revenue at each of our dealerships through maintenance and repair services, and the sale and placement of higher margin products, such as third party finance and insurance products, third-party extended service contracts and replacement and aftermarket automotive products.

     New vehicle revenues include sales to retail customers and to leasing companies providing consumer automobile leasing. Used vehicle revenues include amounts received for used vehicles sold to retail customers, leasing companies providing consumer automobile leasing and other dealers. We generate finance and insurance revenues from sales of third-party extended service contracts and other third-party insurance policies, as well as from fees for facilitating the sale of third-party finance and lease contracts and certain other products. Service and parts revenues include fees paid for repair and maintenance service, the sale of replacement parts, the sale of aftermarket accessories and collision repairs.

     We and Sirius Satellite Radio Inc. (“Sirius”) have agreed to jointly promote Sirius Satellite Radio service. Pursuant to the terms of our arrangement with Sirius, our domestic dealerships endeavor to order a significant percentage of eligible vehicles with a factory installed Sirius radio. We and Sirius have also agreed to jointly market the Sirius service under a best efforts arrangement. Our costs relating to such marketing initiatives are expensed as incurred. As compensation for our efforts, we received warrants to purchase ten million shares of Sirius common stock at $2.392 per share that are earned ratably on an annual basis through January 2009. Two million of these warrants were earned in 2004 and vested in the first quarter of 2005. We exercised the warrants and sold the underlying stock we received upon vesting. The earning of these warrants may accelerate based on us attaining specified subscription targets. Since we can reasonably estimate the number of warrants that will be earned pursuant to the ratable schedule, the estimated fair value (based on current fair value) of those warrants is being recognized ratably during each annual period. We also received an additional ten million warrants to purchase Sirius common stock at $2.392 per share which are earned upon our sale of certain units pertaining to specified brands. We measure the fair value of the warrants earned ratably on the date they are earned as there are no significant disincentives for non-performance. Since we cannot reasonably estimate the number of warrants that will be earned subject to the sale of certain units pertaining to specified brands, the fair value of those warrants is only being recognized when they are earned. The value of Sirius stock has been and is expected to be subject to significant fluctuations, which may result in variability in the amount we earn under this arrangement. The warrants may be cancelled if certain performance targets are not met or upon the termination of our arrangement. We may not be able to achieve any of the performance targets outlined in the warrants.

     Our gross profit tends to vary with the mix of revenues we derive from the sale of new vehicles, used vehicles, finance and insurance products, and service and parts. Our gross profit generally varies across product lines, with vehicle sales usually resulting in lower gross profit margins and our other revenues resulting in higher gross profit margins. Factors such as seasonality, weather, cyclicality and manufacturers’ advertising and incentives may impact the mix of our revenues, and therefore influence our gross profit margin.

     Our selling expenses consist of advertising and compensation for sales personnel, including commissions and related bonuses. General and administrative expenses include compensation for administration, finance, legal and general management personnel, rent, insurance, utilities and other outside services. A significant portion of our selling expenses are variable, and a significant portion of our general and administrative expenses are subject to our control, allowing us to adjust them over time to reflect economic trends.

     Floor plan interest expense relates to indebtedness incurred in connection with the acquisition of new and used vehicle inventories. Other interest expense consists of interest charges on all of our interest-bearing debt, other than interest relating to floor plan financing.

     We have acquired a number of dealerships each year since our inception. Each of these acquisitions has been accounted for using the purchase method of accounting. As a result, our financial statements include the results of operations of the acquired dealerships from the date of acquisition.

     The future success of our business will likely be dependent on, among other things, our ability to consummate and integrate acquisitions, our ability to increase sales of higher margin products, especially service and parts services, our ability to realize returns on our significant capital investment in new and upgraded dealerships, and the success of our international operations. See “Forward-Looking Statements.”

Critical Accounting Policies and Estimates

     The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the application of accounting policies that often involve making estimates and employing judgments. Such judgments influence the assets, liabilities, revenues and expenses in our financial statements. Management, on an ongoing basis, reviews these estimates and assumptions. Management may determine that modifications in assumptions and estimates are required, which may result in a material change in our results of operations or financial position.

     Following are the accounting policies applied in the preparation of our financial statements that management believes are most dependent upon the use of estimates and assumptions.

Revenue Recognition

Vehicle, Parts and Service Sales

     We record revenue when vehicles are delivered and title has passed to the customer, when vehicle service or repair work is performed and when parts are delivered to our customers. Sales promotions that we offer to customers are accounted for as a reduction of sales at the time of sale. Rebates and other incentives offered directly to us by manufacturers are recognized as earned.

Finance and Insurance Sales

     We arrange financing for customers through various financial institutions and receive a commission from the lender equal to either the difference between the interest rates charged to customers and the interest rates set by the financing institution or a flat fee. We also receive commissions for facilitating the sale of various third-party insurance products to customers, including credit and life insurance policies and extended service contracts. These commissions are recorded as revenue at the time the customer enters into the contract. In the case of finance contracts, a customer may prepay or fail to pay their contract, thereby terminating the contract. Customers may also terminate extended service contracts, which are fully paid at purchase, and become eligible for refunds of unused premiums. In these circumstances, a portion of the commissions we receive may be charged back to us based on the relevant terms of the contracts. The revenue we record relating to commissions is net of an estimate of the ultimate amount of chargebacks we will be required to pay. Such estimate of chargeback exposure is based on our historical chargeback experience arising from similar contracts, including the impact of refinance and default rates on retail finance contracts and cancellation rates on extended service contracts and other insurance products.

Intangible Assets

     Our principal intangible assets relate to our franchise agreements with vehicle manufacturers, which represent the estimated value of franchises acquired in business combinations, and goodwill, which represents the excess of cost over the fair value of tangible and identified intangible assets acquired in connection with business combinations. Intangible assets other than goodwill are required to be amortized over their estimated useful lives. We believe the franchise values of our dealerships have an indefinite life based on the following facts:

•

Automotive retailing is a mature industry and is based on franchise agreements with the vehicle manufacturers;

•

There are no known changes or events that would alter the automotive retailing franchise environment;

•

Certain franchise agreement terms are indefinite;

•

Franchise agreements that have limited terms have historically been renewed without substantial cost;

•

Our history shows that manufacturers have not terminated franchise agreements.

Impairment Testing

     Intangible assets are reviewed for impairment on at least an annual basis. Franchise value impairment is assessed through a comparison of the net book value of our franchises with their estimated fair value. If the carrying value of a franchise exceeds its estimated fair value, an impairment loss is recognized in an amount equal to that excess. We also evaluate the remaining useful life of our franchises in connection with the annual impairment testing to determine whether events and circumstances continue to support an indefinite useful life. Goodwill impairment is assessed at the “reporting unit” level. If the carrying amount of the goodwill attributable to a reporting unit is determined to exceed its estimated fair value, an impairment loss is recognized in an amount equal to that excess. The fair value of the goodwill attributable to our reporting units is determined using a discounted cash flow approach, which includes assumptions regarding revenue and profitability growth, residual values and our cost of capital. If future events and circumstances cause significant changes in the underlying assumptions which result in a reduction of our estimates of fair value, we may incur an impairment charge.

Investments

     Investments include marketable securities and investments in businesses accounted for under the equity method. Marketable securities include investments in debt and equity securities. Marketable securities held by us are typically classified as available for sale and are stated at fair value in our balance sheet with unrealized gains and losses included in other comprehensive income, a separate component of stockholders’ equity. Declines in investment values that are deemed to be other than temporary would result in an impairment charge reducing the investments’ carrying value to fair value. A majority of our investments are in joint venture relationships that are more fully described in “Joint Venture Relationships” below. Such joint venture relationships are accounted for under the equity method, pursuant to which we record our proportionate share of the joint venture’s income each period.

Self-Insurance

     We retain risk relating to certain of our general liability insurance, workers’ compensation insurance and employee medical benefits in the United States. As a result, we are likely to be responsible for a majority of the claims and losses incurred under these programs. The amount of risk we retain varies by program, and, for certain exposures, we have pre-determined maximum exposure limits for certain insurance periods. The majority of losses, if any, above the pre-determined exposure limits are paid by third-party insurance carriers. Our estimate of future losses is prepared by management using our historical loss experience and industry based development factors.

Income Taxes

     Tax regulations may require items to be included in our tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses which are not deductible on our tax return, and some are timing differences, such as the timing of depreciation expense. Timing differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in our tax return in future years for which we have already recorded the tax effect in our financial statements. Deferred tax liabilities generally represent expenses recognized in our financial statements for which payment has been deferred or deductions taken on our tax return which have not yet been recognized as expense in our financial statements. We establish valuation allowances for our deferred tax assets if the amount of expected future taxable income is not likely to allow for the use of the deduction or credit.

New Accounting Pronouncements

     The Financial Accounting Standards Board (“FASB”) issued SFAS No. 123R, “Share-Based Payment”, which replaces SFAS No. 123 “Accounting for Stock-Based Compensation,” and supersedes Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for Stock Issued to Employees.” SFAS No. 123R focuses primarily on accounting for share-based payment transactions as it relates to employee services, establishes accounting standards for equity instruments that an entity exchanges for goods or services and addresses transactions where an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. SFAS No. 123R will require us to expense the grant-date fair value of equity compensation awards over their vesting period.

     We currently account for equity compensation awards in accordance with APB No. 25, pursuant to which the issuance of stock options generally resulted in the recognition of no compensation expense, but required pro forma disclosure showing the effect on net income and earnings per share as if we had recorded the fair value of the grants as compensation expenses.

     Statement No. 123R is effective for us as of July 1, 2005. We are evaluating the adoption criteria outlined in SFAS No. 123R, but we do not believe that its adoption will have a material effect on our consolidated financial position, results of operations or cash flows.

Results of Operations

     The following tables present comparative financial data relating to our operating performance in the aggregate and on a “same store” basis. Dealership results are only included in same store comparisons when we have consolidated the entity during the entirety of both periods being compared. As an example, if a dealership was acquired on January 15, 2004, the results of the acquired entity would be included in quarterly same store comparisons beginning with the second quarter of 2005 and in annual same store comparisons beginning with 2006.

(in millions, except unit and per unit amounts)

										2004 vs. 2003																2003 vs. 2002
Total Retail Data		2004				2003				Change				% Change				2003				2002				Change				% Change
Total retail unit sales			251,678				235,406				16,272				6.9	%			235,406				202,981				32,425				16.0	%
Total same store retail unit sales			221,593				224,232				(2,639	)			(1.2	%)			182,998				172,817				10,181				5.9	%
Total retail sales revenue		$	8,627.7			$	7,399.3			$	1,228.5				16.6	%		$	7,399.3			$	6,016.4			$	1,382.9				23.0	%
Total same store retail sales revenue		$	7,372.2			$	6,975.1			$	397.1				5.7	%		$	5,281.4			$	4,891.4			$	389.9				8.0	%
Total retail gross profit		$	1,381.8			$	1,155.5			$	226.2				19.6	%		$	1,155.5			$	943.0			$	212.5				22.5	%
Total same store retail gross profit		$	1,182.5			$	1,088.9			$	93.6				8.6	%		$	829.8			$	767.0			$	62.8				8.2	%
Total retail gross margin			16.0	%			15.6	%			0.4	%			2.6	%			15.6	%			15.7	%			(0.1	%)			(0.4	%)
Total same store retail gross margin			16.0	%			15.6	%			0.4	%			2.6	%			15.7	%			15.7	%			0.0	%			0.2	%

Units

     Retail data includes new vehicle, used vehicle, finance and insurance and service and parts transactions. Retail unit sales of vehicles increased by 16,272, or 6.9%, from 2003 to 2004 and increased by 32,425, or 16.0%, from 2002 to 2003. The increase from 2003 to 2004 is due to an 18,911 unit increase from net dealership acquisitions during the year, partially offset by a 2,639, or 1.2%, decrease in same store retail unit sales. The decrease in same store retail unit sales in 2004 is due primarily to decreased retail unit sales of used vehicles, which we believe is due to a challenging used vehicle market in the U.S. during 2004 due to the relative affordability of new vehicles and continued incentive spending by certain manufacturers. The increase from 2002 to 2003 is due to a 10,181, or 5.9%, increase in same store retail unit sales coupled with a 22,244 unit increase from net dealership acquisitions during the year.

Revenues

     Retail sales revenue increased $1,228.5 million, or 16.6%, from 2003 to 2004 and increased $1,382.9 million, or 23.0%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $397.1 million, or 5.7%, increase in same store revenues coupled with an $831.3 million increase from net dealership acquisitions during the year. The same store revenue increase is due to: (1) a $1,376, or 4.6%, increase in average new vehicle revenue per unit, which increased revenue by $206.6 million, (2) a $1,887, or 8.8%, increase in average used vehicle revenue per unit, which increased revenue by $139.9 million, (3) a $77, or 9.5%, increase in average finance and insurance revenue per unit, which increased revenue by $17.2 million, and (4) a $91.8 million, or 12.6%, increase in service and parts revenues, all partially offset by the 1.2% decrease in retail unit sales, which decreased revenue by $58.4 million. The increase from 2002 to 2003 is due to a $389.9 million, or 8.0%, increase in same store revenues coupled with a $992.9 million increase from net dealership acquisitions during the year. The same store revenue increase is due to: (1) the 5.9% increase in retail unit sales, which increased revenue by $245.8 million, (2) a $794, or 2.8%, increase in average new vehicle revenue per unit, which increased revenue by $95.6 million, (3) a $53, or 6.8%, increase in average finance and insurance revenue per unit, which increased revenue by $9.3 million, and (4) a $45.4 million, or 9.4%, increase in service and parts revenues, all partially offset by a $109, or 0.6% decrease in average used vehicle revenue per unit, which decreased revenue by $6.2 million.

Gross Profit

     Retail gross profit increased $226.2 million, or 19.6%, from 2003 to 2004 and increased $212.5 million, or 22.5%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $93.6 million, or 8.6%, increase in same store gross profit coupled with a $132.6 million increase from net dealership acquisitions during the year. The same store gross profit increase is due to: (1) a $107, or 4.3%, increase in average gross profit per new vehicle retailed, which increased gross profit by $16.1 million, (2) a $230, or 11.9%, increase in average gross profit per used vehicle retailed, which increased gross profit by $17.0 million, (3) a $77, or 9.5%, increase in average finance and insurance revenue per unit, which increased gross profit by $17.2 million, and (4) a $51.0 million, or 13.1%, increase in service and parts gross profit, all offset by the 1.2% decrease in retail unit sales, which decreased gross profit by $7.7 million. The increase from 2002 to 2003 is due to a $62.8 million, or 8.2%, increase in same store gross profit coupled with a $149.7 million increase from net dealership acquisitions during the year. The same store gross profit increase is due to: (1) the 5.9%, increase in retail unit sales, which increased gross profit by $29.9 million, (2) a $24, or 1.3%,

increase in average gross profit per used vehicle retailed, which increased gross profit by $1.3 million, (3) a $53, or 6.8%, increase in average finance and insurance revenue per unit, which increased gross profit by $9.3 million, and (4) a $27.3 million, or 10.8%, increase in service and parts gross profit, all partially offset by a $40, or 1.7% decrease in average gross profit per new vehicle retailed, which decreased gross profit by $5.0 million.

New Vehicle Data

										2004 vs. 2003																2003 vs. 2002
		2004				2003				Change				% Change				2003				2002				Change				% Change
New retail unit sales			168,842				156,605				12,237				7.8	%			156,605				138,578				18,027				13.0	%
Same store new retail unit sales			150,794				150,118				676				0.5	%			125,696				120,398				5,298				4.4	%
New retail sales revenue		$	5,416.3			$	4,722.6			$	693.7				14.7	%		$	4,722.6			$	3,948.9			$	773.7				19.6	%
Same store new retail sales revenue		$	4,708.5			$	4,480.8			$	227.7				5.1	%		$	3,605.0			$	3,357.6			$	247.4				7.4	%
New retail sales revenue per unit		$	32,079			$	30,156			$	1,923				6.4	%		$	30,156			$	28,496			$	1,660				5.8	%
Same store new retail sales revenue per unit		$	31,224			$	29,848			$	1,376				4.6	%		$	28,681			$	27,887			$	794				2.8	%
Gross profit — new		$	465.4			$	399.7			$	65.7				16.4	%		$	399.7			$	339.2			$	60.5				17.8	%
Same store gross profit — new		$	393.4			$	375.6			$	17.8				4.7	%		$	289.8			$	282.5			$	7.3				2.6	%
Average gross profit per new vehicle retailed		$	2,756			$	2,552			$	204				8.0	%		$	2,552			$	2,448			$	104				4.2	%
Same store average gross profit per new vehicle retailed		$	2,609			$	2,502			$	107				4.3	%		$	2,306			$	2,346			$	(40	)			(1.7	%)
Gross margin % — new			8.6	%			8.5	%			0.1	%			1.2	%			8.5	%			8.6	%			(0.1	%)			(1.2	%)
Same store gross margin % — new			8.4	%			8.4	%			0.0	%			0.0	%			8.0	%			8.4	%			(0.4	%)			(4.8	%)

Units

     Retail unit sales of new vehicles increased 12,237 units, or 7.8%, from 2003 to 2004 and increased 18,027 units, or 13.0%, from 2002 to 2003. The increase from 2003 to 2004 is due to a 676 unit, or 0.5%, increase in same store retail unit sales coupled with an 11,561 unit increase from net dealership acquisitions during the year. The increase from 2002 to 2003 is due to a 5,298 unit, or 4.4%, increase in same store retail unit sales coupled with a 12,729 unit increase from net dealership acquisitions during the year. We believe that the same store increases in 2003 and 2004 are due in part to our brand mix, which includes a concentration of foreign and premium nameplates, offset by lower new unit sales at our domestic brand dealerships.

Revenues

     New vehicle retail sales revenue increased $693.7 million, or 14.7%, from 2003 to 2004 and increased $773.7 million, or 19.6%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $227.7 million, or 5.1%, increase in same store revenues coupled with a $466.0 million increase from net dealership acquisitions during the year. The same store revenue increase is due to the 0.5% increase in retail unit sales, which increased revenue by $21.1 million, coupled with a $1,376, or 4.6%, increase in comparative average selling price per unit, which increased revenue by $206.6 million. The increase from 2002 to 2003 is due to a $247.4 million, or 7.4%, increase in same store revenues coupled with a $526.3 million increase from net dealership acquisitions during the year. The same store revenue increase is due to the 4.4% increase in retail unit sales, which increased revenue by $151.8 million, coupled with an $794, or 2.8%, increase in comparative average selling price per unit, which increased revenue by $95.6 million.

Gross Profit

     Retail gross profit from new vehicle sales increased $65.7 million, or 16.4%, from 2003 to 2004 and increased $60.5 million, or 17.8%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $17.8 million, or 4.7%, increase in same store gross profit coupled with a $47.9 million increase from net dealership acquisitions during the year. The same store retail gross profit increase is due to the 0.5% increase in new retail unit sales, which increased gross profit by $1.8 million, coupled with a $107, or 4.3%, increase in average gross profit per new vehicle retailed, which increased gross profit by $16.0 million. The increase from 2002 to 2003 is due to a $7.3 million, or 2.6%, increase in same store gross profit coupled with a $53.2 million increase from net dealership acquisitions during the year. The same store retail gross profit increase is due to the 4.4% increase in new retail unit sales, which increased gross profit by $12.2 million, partially offset by a $40, or 1.7%, decrease in average gross profit per new vehicle retailed, which decreased gross profit by $4.9 million.

Used Vehicle Data

										2004 vs. 2003																2003 vs. 2002
		2004				2003				Change				% Change				2003				2002				Change				% Change
Used retail unit sales			82,836				78,801				4,035				5.1	%			78,801				64,403				14,398				22.4	%
Same store used retail unit sales			70,799				74,114				(3,315	)			(4.5	%)			57,302				52,419				4,883				9.3	%
Used retail sales revenue		$	2,028.6			$	1,714.8			$	313.8				18.3	%		$	1,714.8			$	1,301.4			$	413.4				31.8	%
Same store used retail sales revenue		$	1,648.6			$	1,585.9			$	62.7				4.0	%		$	996.5			$	917.3			$	79.2				8.6	%
Used retail sales revenue per unit		$	24,489			$	21,762			$	2,727				12.5	%		$	21,762			$	20,207			$	1,555				7.7	%
Same store used retail sales revenue per unit		$	23,285			$	21,398			$	1,887				8.8	%		$	17,391			$	17,500			$	(109	)			(0.6	%)
Gross profit — used		$	175.9			$	152.6			$	23.3				15.3	%		$	152.6			$	125.9			$	26.7				21.2	%
Same store gross profit — used		$	152.6			$	142.7			$	9.9				6.9	%		$	107.2			$	96.8			$	10.4				10.7	%
Average gross profit per used vehicle retailed		$	2,124			$	1,936			$	188				9.7	%		$	1,936			$	1,955			$	(19	)			(1.0	%)
Same store average gross profit per used vehicle retailed		$	2,156			$	1,926			$	230				11.9	%		$	1,871			$	1,847			$	24				1.3	%
Gross margin % — used			8.7	%			8.9	%			(0.2	%)			(2.2	%)			8.9	%			9.7	%			(0.8	%)			(8.2	%)
Same store gross margin % — used			9.3	%			9.0	%			0.3	%			3.3	%			10.8	%			10.6	%			0.2	%			1.9	%

Units

     Retail unit sales of used vehicles increased 4,035 units, or 5.1%, from 2003 to 2004 and increased 14,398 units, or 22.4%, from 2002 to 2003. The increase from 2003 to 2004 is due to a 7,350 unit increase from net dealership acquisitions during the year offset by a 3,315 unit, or 4.5%, decrease in same store used retail unit sales. We believe that the same store decrease is due in part to the challenging used vehicle market in the U.S. during 2004. The increase from 2002 to 2003 is due to a 4,883 unit, or 9.3%, increase in same store used retail unit sales coupled with a 9,515 unit increase from net dealership acquisitions during the year.

Revenues

     Used vehicle retail sales revenue increased $313.8 million, or 18.3%, from 2003 to 2004 and increased $413.4 million, or 31.8%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $62.7 million, or 4.0%, increase in same store revenues coupled with a $251.1 million increase from net dealership acquisitions during the year. The same store revenue increase is due to a $1,887, or 8.8%, increase in comparative average selling price per vehicle, which increased revenue by $139.9 million, partially offset by the 4.5% decrease in retail unit sales, which decreased revenue by $77.2 million. The increase from 2002 to 2003 is due to a $79.2 million, or 8.6%, increase in same store revenues coupled with a $334.2 million increase from net dealership acquisitions during the year. The same store revenue increase is due to the 9.3% increase in retail unit sales, which increased revenue by $85.4 million, offset by a $109, or 0.6%, decrease in comparative average selling price per unit, which decreased revenue by $6.2 million.

Gross Profit

     Retail gross profit from used vehicle sales increased $23.3 million, or 15.3%, from 2003 to 2004 and increased $26.7 million, or 21.2%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $9.9 million, or 6.9%, increase in same store gross profit coupled with a $13.4 million increase from net dealership acquisitions during the year. The same store gross profit increase is due to a $230, or 11.9%, increase in average gross profit per used vehicle retailed, which increased gross profit by $17.0 million, offset by the 4.5% decrease in used retail unit sales, which decreased gross profit by $7.1 million. The increase from 2002 to 2003 is due to a $10.4 million, or 10.7%, increase in same store gross profit coupled with a $16.3 million increase from net dealership acquisitions during the year. The same store gross profit increase is due to the 9.3% increase in used retail unit sales, which increased gross profit by $9.1 million, coupled with a $24, or 1.3%, increase in average gross profit per used vehicle retailed, which increased gross profit by $1.3 million.

Finance and Insurance Data

										2004 vs. 2003																2003 vs. 2002
		2004				2003				Change				% Change				2003				2002				Change				% Change
Total retail unit sales			251,678				235,406				16,272				6.9	%			235,406				202,981				32,425				16.0	%
Total same store retail unit sales			221,593				224,232				(2,639	)			(1.2	%)			182,998				172,817				10,181				5.9	%
Finance and insurance revenue		$	219.3			$	190.2			$	29.1				15.3	%		$	190.2			$	154.2			$	36.0				23.3	%
Same store finance and insurance revenue		$	197.2			$	182.3			$	14.9				8.2	%		$	153.4			$	135.6			$	17.8				13.1	%
Finance and insurance revenue per unit		$	871			$	808			$	63				7.8	%		$	808			$	759			$	49				6.5	%
Same store finance and insurance revenue per unit		$	890			$	813			$	77				9.5	%		$	838			$	785			$	53				6.8	%

     Finance and insurance revenue increased $29.1 million, or 15.3%, from 2003 to 2004 and increased $36.0 million, or 23.3%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $14.9 million, or 8.2%, increase in same store revenues coupled with a $14.2 million increase from net dealership acquisitions during the year. The same store revenue increase is due to a $77, or 9.5%, increase in comparative average finance and insurance revenue per unit, which increased revenue by $17.2 million, partially offset by the 1.2% decrease in retail unit sales, which decreased revenue by $2.3 million. The $77 increase in finance and insurance revenue per unit was due in part to our Sirius Satellite Radio promotion agreement, which was new in 2004. The increase from 2002 to 2003 is due to a $17.8 million, or 13.1%, increase in same store revenues coupled with an $18.2 million increase from net dealership acquisitions during the year. The same store revenue increase is due to the 5.9% increase in retail unit sales, which increased revenue by $8.5 million coupled with a $53, or 6.8%, increase in comparative average finance and insurance revenue per unit, which increased revenue by $9.3 million.

Service and Parts Data

										2004 vs. 2003																2003 vs. 2002
		2004				2003				Change				% Change				2003				2002				Change				% Change
Service and parts revenue		$	963.6			$	771.7			$	191.9				24.9	%		$	771.7			$	612.0			$	159.7				26.1	%
Same store service and parts revenue		$	818.0			$	726.2			$	91.8				12.6	%		$	526.4			$	481.0			$	45.4				9.4	%
Gross profit		$	521.2			$	413.1			$	108.1				26.2	%		$	413.1			$	323.7			$	89.4				27.6	%
Same store gross profit		$	439.3			$	388.3			$	51.0				13.1	%		$	279.4			$	252.1			$	27.3				10.8	%
Gross margin			54.1	%			53.5	%			0.6	%			1.1	%			53.5	%			52.9	%			0.6	%			1.1	%
Same store gross margin			53.7	%			53.5	%			0.2	%			0.4	%			53.1	%			52.4	%			0.7	%			1.3	%

Revenues

     Service and parts revenue increased $191.9 million, or 24.9%, from 2003 to 2004 and increased $159.7 million, or 26.1%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $91.8 million, or 12.6%, increase in same store revenues coupled with a $100.1 million increase from net dealership acquisitions during the year. The increase from 2002 to 2003 is due to a $45.4 million, or 9.4%, increase in same store revenues coupled with a $114.3 million increase from net dealership acquisitions during the year.

     We believe that our service and parts business is being positively impacted by the growth in total retail unit sales at our dealerships, enhancements of warranty programs offered by certain manufacturers, and capacity increases in our service and parts operations resulting from our facility improvement and expansion programs.

Gross Profit

     Service and parts gross profit increased $108.1 million, or 26.2%, from 2003 to 2004 and increased $89.4 million, or 27.6%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $51.0 million, or 13.1%, increase in same store gross profit coupled with a $57.1 million increase from net dealership acquisitions during the year. The same store gross profit increase is due to the $91.8 million, or 12.6%, increase in revenues, which increased gross profit by $49.3, and a 0.4% increase in gross margin, which increased gross profit by $1.7 million. The increase from 2002 to 2003 is due to a $27.3 million, or 10.8%, increase in same store gross profit coupled with a $62.1 million increase from net dealership acquisitions during the year. The same store gross profit increase is due to the $45.4 million, or 9.4%, increase in revenues, which increased gross profit by $24.1, and a 1.3% increase in gross margin, which increased gross profit by $3.2 million.

Selling, General and Administrative

     Selling, general and administrative “SG&A” expenses increased $181.9 million, or 20.2%, from 2003 to 2004 and increased $151.1 million, or 20.1%, from 2002 to 2003. The aggregate increase from 2003 to 2004 is primarily due to a $75.9 million, or 9.0%, increase in same store SG&A coupled with a $106.0 million increase from net dealership acquisitions during the year. The aggregate increase in SG&A from 2002 to 2003 is primarily due to a $32.5 million, or 5.4%, increase in same store SG&A, coupled with a $118.6 million increase from net dealership

acquisitions during the year. The increase in same store SG&A expenses is due in large part to (1) increased variable selling expenses, including increases in variable compensation, as a result of the 8.6% and 8.2% increase in retail gross profit over the prior year in 2004 and 2003, respectively, (2) increased rent and related costs in both years due in part to our facility improvement and expansion program, and (3) increased advertising and promotion caused by the overall competitiveness of the retail vehicle market. Such increases were offset in part in 2004 by a refund of U.K. consumption taxes and in 2003 by (1) reduced comparative legal and insurance expense and (2) the comparative effect of a $22.8 million charge for estimated employment contract costs recorded in 2002.

Depreciation and Amortization

     Depreciation and amortization increased $11.0 million, or 37.4%, from 2003 to 2004 and increased $9.8 million, or 49.7%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $9.0 million, or 31.7%, increase in same store depreciation and amortization coupled with a $2.0 million increase from net dealership acquisitions during the year. The same store increase is due in large part to our facility improvement and expansion program certain costs related to the relocation of certain U.K. franchises. The increase from 2002 to 2003 is due to a $7.1 million, or 46.2%, increase in same store depreciation and amortization coupled with a $2.7 million increase from net dealership acquisitions during the year. The same store increase is due in large part to our facility improvement and expansion program.

Floor Plan Interest Expense

     Floor plan interest expense increased $6.2 million, or 15.1%, from 2003 to 2004 and increased $8.8 million, or 27.3%, from 2002 to 2003. The increase from 2003 to 2004 is due to a $2.7 million, or 6.7%, increase in same store floor plan interest expense coupled with a $3.5 million increase from net dealership acquisitions during the year. The same store increase is primarily due to a net increase in our weighted average borrowing rate during 2004 compared to 2003, offset by a decrease in average floor plan notes outstanding. The increase from 2002 to 2003 is due to a $5.5 million, or 20.0%, increase in same store floor plan interest expense coupled with a $3.3 million increase from net dealership acquisitions during the year. The same store increase is primarily due to $6.0 million of incremental interest resulting from our March 2003 interest rate swap, pursuant to which a notional amount of $350.0 million of our floating rate floor plan debt was exchanged for a 3.15% fixed rate for a five year period, offset partially by a decrease in average floor plan notes outstanding during 2003 compared to 2002.

Other Interest Expense

     Other interest expense increased $0.1 million, or 0.3%, from 2003 to 2004 and increased $4.6 million, or 11.9%, from 2002 to 2003. The increase from 2003 to 2004 is due primarily to an increase in our weighted average borrowing rate during 2004, offset in part by the reduction of outstanding indebtedness with the proceeds of the March 2004 sale of our common stock. The increase from 2002 to 2003 is due primarily to increased working capital advances and acquisition related indebtedness, offset in part by a decrease in our weighted average borrowing rate.

Income Taxes

     Income taxes increased $10.7 million, or 18.9%, from 2003 to 2004 and increased $16.1 million, or 40.0%, from 2002 to 2003. The increase in both years is due primarily to an increase in pre-tax income, offset by a reduction in our effective rate resulting primarily from an increase in the relative proportion of our income from our U.K. operations, which are taxed at a lower rate.

Liquidity and Capital Resources

     Our cash requirements are primarily for working capital, inventory financing, the acquisition of new dealerships, the improvement and expansion of existing facilities, the construction of new facilities and dividends. Historically, these cash requirements have been met through cash flow from operations, borrowings under our credit agreements and floor plan arrangements, the issuance of debt securities, sale-leaseback transactions and the issuance of equity securities. As of December 31, 2004, we had working capital of $113.7 million, including $15.2 million of cash, available to fund the Company’s operations and capital commitments. In addition, we had $310.7 million and £67.2 million ($129.0 million) available for borrowing under our U.S. credit agreement and our U.K. credit agreement, respectively, which are each discussed below.

     We paid cash dividends on our common stock on December 1, 2004 and March 1, 2005, each in the amount of eleven cents per share. Future quarterly or other cash dividends will depend upon our earnings, capital requirements, financial condition, restrictions on any then existing indebtedness and other factors considered relevant by our Board of Directors.

     We have grown primarily through the acquisition of automotive dealerships. We believe that our cash flow from operating activities and our existing capital resources, including the liquidity provided by our credit agreements and floor plan financing arrangements, will be sufficient to fund our operations and commitments for the next twelve months. To the extent we pursue additional significant acquisitions, we may need to raise additional capital either through the public or private issuance of equity or debt securities or through additional bank borrowings. We may not have sufficient availability under our credit agreements to finance significant additional acquisitions. In certain circumstances, a public

equity offering could require the prior approval of certain automobile manufacturers. In connection with such potential significant acquisitions, there is no assurance that we would be able to access the capital markets or increase our borrowing capabilities on terms acceptable to us, if at all.

Inventory Financing

     We finance substantially all of our new and a portion of our used vehicle inventories under revolving floor plan notes payable with various lenders. In the U.S., the floor plan arrangements are due on demand; however, we are generally not required to make loan principal repayments prior to the sale of the vehicles financed. We typically make monthly interest payments on the amount financed. In the U.K., substantially all of the floor plan arrangements are payable on demand or have an original maturity of 90 days or less.

     The floor plan agreements grant a security interest in substantially all of the assets of the Company’s dealership subsidiaries. Interest rates under the floor plan arrangements are variable and increase or decrease based on changes in prime or LIBOR borrowing rates. The weighted average interest rate on floor plan borrowings was 4.22%, 4.48% and 5.13% for the years ended December 31, 2004, 2003 and 2002, respectively. The Company receives non-refundable credits from certain of its vehicle manufacturers, which are treated as a reduction of cost of goods sold as vehicles are sold. Such credits amounted to $32.4 million, $30.0 million and $27.9 million during the years ended December 31, 2004, 2003 and 2002, respectively.

U.S. Credit Agreement

     We are party to a credit agreement with DaimlerChrysler Services North America LLC and Toyota Motor Credit Corporation, as amended effective October 1, 2004 (the “U.S. Credit Agreement”), which provides for up to $600.0 million in revolving loans for working capital, acquisitions, capital expenditures, investments and for other general corporate purposes, and for an additional $50.0 million of availability for letters of credit, through September 30, 2007. The revolving loans bear interest between defined LIBOR plus 2.60% and defined LIBOR plus 3.75%.

     The U.S. Credit Agreement is fully and unconditionally guaranteed on a joint and several basis by our domestic subsidiaries and contains a number of significant covenants that, among other things, restrict our ability to dispose of assets, incur additional indebtedness, repay other indebtedness, create liens on assets, make investments or acquisitions and engage in mergers or consolidations. We are also required to comply with specified financial and other tests and ratios, each as defined in the U.S. Credit Agreement, including: a ratio of current assets to current liabilities, a fixed charge coverage ratio, a ratio of debt to stockholders’ equity, a ratio of debt to EBITDA, a ratio of domestic debt to domestic EBITDA, and a measurement of stockholders’ equity. A breach of these requirements would give rise to certain remedies under the agreement, the most severe of which is the termination of the agreement and acceleration of the amounts owed. As of December 31, 2004, we were in compliance with all covenants under the U.S. Credit Agreement, and management believes the Company will remain in compliance with such covenants for the foreseeable future. In making such determination, management has considered the current margin of compliance with the covenants and the expected future results of operations, working capital requirements, acquisitions, capital expenditures and investments in the U.S.

     The U.S. Credit Agreement also contains typical events of default, including change of control, non-payment of obligations and cross-defaults to our other material indebtedness. Substantially all of our domestic assets not pledged as security under floor plan arrangements are subject to security interests granted to lenders under the U.S. Credit Agreement. As of December 31, 2004, outstanding borrowings and letters of credit under the U.S. Credit Agreement amounted to $254.8 million and $34.5 million, respectively.

U.K. Credit Agreement

     Our subsidiaries in the U.K. (the “U.K. Subsidiaries”) are party to a credit agreement with the Royal Bank of Scotland dated February 28, 2003, as amended (the “U.K. Credit Agreement”), which provides for up to £65.0 million in revolving and term loans to be used for acquisitions, working capital, and general corporate purposes. Revolving loans under the U.K. Credit Agreement have an original maturity of 90 days or less and bear interest between defined LIBOR plus 0.85% and defined LIBOR plus 1.25%. The U.K. Credit Agreement also provides for an additional seasonally adjusted overdraft line of credit up to a maximum of £15.0 million. Term loan capacity under the U.K. Credit Agreement was originally £10.0 million, which is reduced by £2.0 million every six months. As of December 31, 2004, term loan capacity under the U.K. Credit Agreement amounted to £6.0 million. The remaining £55.0 million of revolving loan capacity matures on March 31, 2007.

     The U.K. Credit Agreement is fully and unconditionally guaranteed on a joint and several basis by the U.K. Subsidiaries, and contains a number of significant covenants that, among other things, restrict the ability of the U.K. Subsidiaries to pay dividends, dispose of assets, incur additional indebtedness, repay other indebtedness, create liens on assets, make investments or acquisitions and engage in mergers or consolidations. In addition, the U.K. Subsidiaries are required to comply with specified ratios and tests, each as defined in the U.K. Credit Agreement, including: a measurement of net worth, a debt to capital ratio, an EBITDA to interest expense ratio, a measurement of maximum capital expenditures, a debt to EBITDA ratio, and a fixed charge coverage ratio. A breach of these requirements would give rise to certain remedies under the agreement, the most severe of which is the termination of the agreement and acceleration of the amounts owed. As of

December 31, 2004, we were in compliance with all covenants under the U.K. Credit Agreement, and management believes that the Company will remain in compliance with such covenants for the foreseeable future. In making such determination, management has considered the current margin of compliance with the covenants and the expected future results of operations, working capital requirements, acquisitions, capital expenditures and investments in the U.K.

     The U.K. Credit Agreement also contains typical events of default, including change of control and non-payment of obligations. Substantially all of the U.K. Subsidiaries’ assets not pledged as security under floor plan arrangements are subject to security interests granted to lenders under the U.K. Credit Agreement. The U.K. Credit Agreement also has cross-default provisions that trigger a default in the event of an uncured default under other material indebtedness of the U.K. Subsidiaries. As of December 31, 2004, outstanding borrowings under the U.K. Credit Agreement amounted to approximately £8.8 million ($16.8 million).

Senior Subordinated Notes

     We have outstanding $300.0 million aggregate principal amount of 9.625% Senior Subordinated Notes due 2012 (the “Notes”). The Notes are unsecured senior subordinated notes and rank behind all existing and future senior debt, including debt under our credit agreements and floor plan indebtedness. The Notes are guaranteed by substantially all domestic subsidiaries on a senior subordinated basis. We can redeem all or some of the Notes at our option beginning in 2007 at specified redemption prices. Upon a change of control, each holder of Notes will be able to require us to repurchase all or some of the Notes at a redemption price of 101% of the principal amount of the Notes. The Notes also contain customary negative covenants and events of default. As of December 31, 2004, we were in compliance with all negative covenants and there were no events of default.

Interest Rate Swaps

     We are party to an interest rate swap agreement through January 2008 pursuant to which a notional $200.0 million of our U.S. floating rate debt was exchanged for fixed rate debt. The swap was designated as a cash flow hedge of future interest payments of the LIBOR based U.S. floor plan borrowings. As of December 31, 2004, we expect approximately $4.0 million of interest associated with the swap to be reclassified as a charge to income over the next twelve months.

Other Financing Arrangements

     In the past, we have entered into sale-leaseback transactions to finance certain property acquisitions and capital expenditures, pursuant to which we sell property and/or leasehold improvements to a third-party and agree to lease those assets back for a certain period of time. We believe we will continue to utilize these types of transactions in the future. Such sales generate proceeds which vary from period to period. Commitments under such leases are included in the table of contractual payment obligations below.

Capital Transaction

     On March 26, 2004, we sold an aggregate of 4,050,000 shares of our common stock to Mitsui & Co., Ltd. and Mitsui & Co. (U.S.A.), Inc. for $119.4 million, or $29.49 per share. The proceeds of the sale were used for general corporate purposes, which included reducing outstanding indebtedness under our credit agreements.

Cash Flows

     We finance substantially all of our new and a portion of our used vehicle inventories under revolving floor plan notes payable with various lenders. Historically, we reported all cash flows arising in connection with changes in floor plan notes payable as an operating activity. We have restated and reclassified floor plan notes payable to a party other than the manufacturer of a particular new vehicle, and all floor plan notes payable relating to pre-owned vehicles, as floor plan notes payable non-trade, and have reclassified related cash flows as a financing activity to comply with the guidance under Statement of Financial Accounting Standards No. 95, “Statement of Cash Flows.” As a result, the Consolidated Statement of Cash Flows has been restated, resulting in a $59.9 million increase in cash flows from continuing operating activities and a corresponding decrease in cash flows from continuing financing activities for the year ended December 31, 2004, and a $150.7 million and $48.0 million decrease in cash flows from continuing operating activities and a corresponding increase in cash flows from continuing financing activities for the year ended December 31, 2003 and 2002, respectively.

     Cash and cash equivalents increased by $1.3 million, $3.6 million and $6.4 million during the years ended December 31, 2004, 2003 and 2002. The major components of these changes are discussed below.

Cash Flows from Continuing Operating Activities

     Cash provided by operating activities was $247.4 million, $24.3 million and $39.3 million during the years ended December 31, 2004, 2003 and 2002, respectively. Cash flows from operating activities include net income adjusted for non-cash items and the effects of changes in working capital.

     We believe that changes in aggregate floor plan liabilities are directly linked to changes in vehicle inventory and therefore, are an integral part of understanding changes in our working capital and operating cash flow. Consequently, we have provided below a reconciliation of cash flow from operating activities as reported in our Consolidated Statement of Cash Flows as if all changes in vehicle floor plan were classified as an operating activity.

		Year Ended December 31,
		2004				2003				2002
Net cash from continuing operating activities as reported		$	247,447			$	24,264			$	39,335
Floor plan notes payable — non-trade as reported			(59,901	)			150,705				47,967
Net cash from continuing operating activities including all floor plan notes payable		$	187,546			$	174,969			$	87,302

Cash Flows from Continuing Investing Activities

     Cash used in investing activities was $237.4 million, $178.2 million and $291.3 million during the years ended December 31, 2004, 2003 and 2002, respectively. Cash flows from investing activities consist primarily of cash used for capital expenditures, proceeds from sale-leaseback transactions and net expenditures for dealership acquisitions. Capital expenditures were $231.8 million, $198.2 million and $183.3 million during the years ended December 31, 2004, 2003 and 2002, respectively. Capital expenditures relate primarily to improvements to our existing dealership facilities and the construction of new facilities. Proceeds from sale-leaseback transactions were $149.1 million, $133.4 million and $85.5 million during the years ended December 31, 2004, 2003 and 2002, respectively. Cash used in business acquisitions, net of cash acquired, was $168.2 million, $113.4 million and $193.5 million during the years ended December 31, 2004, 2003 and 2002, respectively. Cash flows from investing activities include $13.6 million of proceeds received from the sale of an investment during the year ended December 31, 2004.

Cash Flows from Continuing Financing Activities

     Cash used in financing activities was $27.2 million during the year ended December 31, 2004, and cash provided by financing activities was $130.9 million and $237.5 million during the years ended December 31, 2003 and 2002, respectively. Cash flows from financing activities include borrowings and repayments of long-term debt, net borrowings or repayments of floor plan notes payable non-trade, proceeds from the issuance of common stock, including proceeds from the exercise of stock options, repurchases of common stock and dividends. We had net repayments of long-term debt of $74.3 million and $25.6 million during the years ended December 31, 2004 and 2003, respectively. We had net borrowings of long-term debt of $78.3 million during the year ended December 31, 2002. We had net repayments of floor plan notes payable non-trade of $59.9 million during the year ended December 31, 2004 and net borrowings of floor plan notes payable non-trade of $150.7 million and $48.0 million during the years ended December 31, 2003 and 2002, respectively. During the years ended December 31, 2004, 2003 and 2002 we received proceeds of $125.4 million, $9.9 million and $135.3 million, respectively from the issuance of common stock. During the years ended December 31, 2004 and 2003, we paid $18.4 million and $4.1 million, respectively, of cash dividends to our stockholders. During the year ended December 31, 2002, we repurchased $16.0 million of our common stock and we paid $8.1 million of financing costs.

Contractual Payment Obligations

     The table below sets forth our best estimates as to the amounts and timing of future payments relating to our most significant contractual obligations as of December 31, 2004. The information in the table reflects future unconditional payments and is based upon, among other things, the terms of any relevant agreements. Future events, including acquisitions, divestitures, entering into new operating lease agreements, the amount of borrowings under our credit agreements and floor plan arrangements and purchases or refinancing of our securities, could cause actual payments to differ significantly from these amounts. See “ — Forward-Looking Statements.”

		Payments due in
		Total				2005				2006				2007				2008				2009				Thereafter
														(in millions)
Floorplan Notes Payable (including non-trade) (A)		$	1,197.5			$	1,197.5			$	—			$	—			$	—			$	—			$	—
U.S. Credit Agreement(B)		$	254.8			$	—			$	—			$	254.8			$	—			$	—			$	—
U.K. Credit Agreement(B)		$	16.8			$	—			$	—			$	16.8			$	—			$	—			$	—
9.625% Senior Subordinated Notes		$	300.0			$	—			$	—			$	—			$	—			$	—			$	300.0
Other Debt		$	14.7			$	11.4			$	2.0			$	0.5			$	0.2			$	0.2			$	0.4
Scheduled interest payments (C)		$	232.2			$	29.8			$	29.0			$	28.9			$	28.9			$	28.9			$	86.7
Operating Lease Commitments		$	1,520.4			$	123.3			$	119.9			$	115.8			$	112.8			$	109.4			$	939.2
Deferred Acquisition Payments		$	24.5			$	24.5			$	—			$	—			$	—			$	—			$	—
Employment Contract Termination Costs		$	8.4			$	8.4			$	—			$	—			$	—			$	—			$	—
		$	3,569.3			$	1,394.9			$	150.9			$	416.8			$	141.9			$	138.5			$	1,326.3

     We expect that the amounts above will be funded through cash flow from operations. In the case of balloon payments at the end of the term of our debt instruments, we expect to be able to refinance such instruments in the normal course of business.

Commitments

     In connection with an acquisition of dealerships completed in October 2000, we agreed to make a contingent payment in cash to the extent 841,476 shares of common stock issued as consideration for the acquisition are sold subsequent to the fifth anniversary of the transaction and have a market value of less than $12.00 per share at the time of sale. We will be forever released from this guarantee in the event the average daily closing price of our common stock for any 90 day period subsequent to the fifth anniversary of the transaction exceeds $12.00 per share. In the event we are required to make a payment relating to this guarantee, such payment would result in the revaluation of the common stock issued in the transaction, resulting in a reduction of additional paid-in-capital. We have further granted the seller a put option pursuant to which we may be required to repurchase no more than 108,333 shares for $12.00 per share on each of the first five anniversary dates of the transaction. To date, no payments have been made by us relating to the put option. As of December 31, 2004, the maximum of future cumulative cash payments we may be required to make in connection with the put option amounted to $1.3 million.

     We have entered into an agreement with a third-party to jointly acquire and manage dealerships in Indiana, Illinois, Ohio, North Carolina and South Carolina. With respect to any joint venture relationship established pursuant to this agreement, we are required to repurchase our partner’s interest at the end of the five-year period following the date of formation of the joint venture relationship. Pursuant to this arrangement, we entered into a joint venture agreement with respect to our Honda of Mentor dealership in Ohio. We are required to repurchase our partners’ interest in this joint venture in July 2008. We expect this payment to be approximately $2.7 million.

Related Party Transactions

Stockholders Agreement

     Roger S. Penske, our Chairman of the Board and Chief Executive Officer, is also Chairman of the Board and Chief Executive Officer of Penske Corporation, and through entities affiliated with Penske Corporation, our largest stockholder owning approximately 41% of our outstanding stock. Mitsui & Co., Ltd. and Mitsui & Co. (USA), Inc. (collectively, “Mitsui”) own approximately 15% of our outstanding common stock. Mitsui, Penske Corporation and certain other affiliates of Penske Corporation are parties to a stockholders agreement pursuant to which the Penske affiliated companies agreed to vote their shares for one director who is a representative of Mitsui. In turn, Mitsui agreed to vote their shares for up to fourteen directors voted for by the Penske affiliated companies. This agreement terminates in March 2014, upon the mutual consent of the parties or when either party no longer owns any of our common stock.

Mitsui Transaction

     On March 26, 2004, we sold an aggregate of 4,050,000 shares of common stock to Mitsui for $119,435. Proceeds from the sale were used for general corporate purposes, which included reducing outstanding indebtedness under our credit agreements.

Other Related Party Interests

     James A. Hislop, one of our directors, is the President, Chief Executive Officer and a managing member of Penske Capital Partners, a director of Penske Corporation and a managing director of Transportation Resource Partners, an organization which undertakes investments in transportation related industries. Roger S. Penske also is a managing member of Penske Capital Partners and Transportation Resource Partners. Richard J. Peters, one of our directors, is a director of Penske Corporation and a managing director of Transportation Resource Partners. Eustace W. Mita and Lucio A. Noto (two of our directors) are investors in Transportation Resource Partners. One of our board members, Mr. Hiroshi Ishikawa, serves as our Executive Vice President — International Business Development and serves in a similar capacity for Penske Corporation. Robert H. Kurnick, Jr., our Executive Vice President and General Counsel, is also the President and a director of Penske Corporation and Paul F. Walters, our Executive Vice President — Human Resources serves in a similar human resources capacity for Penske Corporation.

Other Transactions

     We are currently a tenant under a number of non-cancelable lease agreements with Automotive Group Realty, LLC and its subsidiaries (together “AGR”), which are subsidiaries of Penske Corporation. From time to time we may sell AGR real property and improvements which are subsequently leased by AGR to us. The sale of each parcel of property is valued at a price which is independently confirmed by a third party appraiser. During 2004 and 2003, we paid $5.6 and $5.9 million, respectively to AGR under these lease agreements. In addition, in 2004 and 2003 we sold AGR real property and improvements for $30.8 and $19.3 million, respectively, which were subsequently leased by AGR to us. There were no gains or losses associated with such sales.

     We sometimes pay and/or receive fees to/from Penske Corporation and its affiliates for services rendered in the normal course of business, or to reimburse payments made to third parties on each others behalf. Payments made relating to services rendered reflect the provider’s cost or an amount mutually agreed upon by both parties, which we believe represent terms at least as favorable as those that could be obtained from an unaffiliated third party negotiated on an arm’s length basis.

     We are currently a tenant under a number of non-cancelable lease agreements with Samuel X. DiFeo and members of his family. Mr. DiFeo is our President and Chief Operating Officer. We paid $5.5 million during both 2004 and 2003 to Mr. DiFeo and his family under these lease agreements. We believe that the terms of these transactions are at least as favorable as those that could be obtained from an unaffiliated third party negotiated on an arm’s length basis.

     We have entered into joint ventures with certain related parties as more fully discussed below.

Joint Venture Relationships

     From time to time we enter into joint venture relationships in the ordinary course of business, pursuant to which we acquire dealerships together with other investors. We may also provide these subsidiaries with working capital and other debt financing at costs that are based on our incremental borrowing rate. As of December 31, 2004 our joint venture relationships are as follows:

				Ownership
Location		Dealerships		Interest
Fairfield, Connecticut		Mercedes-Benz, Audi, Porsche			92.90	%(A)
Edison, New Jersey		Ferrari			70.00	%
Tysons Corner, Virginia		Mercedes-Benz, Maybach, Audi,			90.00	%(B)
		Porsche, Aston Martin,
Mentor, Ohio		Honda			70.00	%
Munich, Germany		BMW			50.00	%
Frankfurt, Germany		Lexus, Toyota			50.00	%
Mexico		Toyota			48.70	%
Mexico		Toyota			45.00	%

Cyclicality

     Unit sales of motor vehicles, particularly new vehicles, historically have been cyclical, fluctuating with general economic cycles. During economic downturns, the automotive retailing industry tends to experience similar periods of decline and recession as the general economy. We believe that the industry is influenced by general economic conditions and particularly by consumer confidence, the level of personal discretionary spending, fuel prices, interest rates and credit availability.

Seasonality

     Our business is modestly seasonal overall. Our U.S. operations generally experience higher volumes of vehicle sales in the second and third quarters of each year due in part to consumer buying trends and the introduction of new vehicle models. Also, demand for cars and light trucks is generally lower during the winter months than in other seasons, particularly in regions of the United States where dealerships may be subject to severe winters. The greatest U.S. seasonality exists at the dealerships we operate in northeastern and upper mid-western states, for which the second and third quarters are the strongest with respect to vehicle-related sales. Our U.K. operations generally experience higher volumes of vehicle sales in the first and third quarters of each year, due primarily to vehicle registration practices in the U.K. The service and parts business at all dealerships experiences relatively modest seasonal fluctuations.

Effects of Inflation

     We believe that inflation rates over the last few years have not had a significant impact on revenues or profitability. We do not expect inflation to have any near-term material effects on the sale of our products and services. However, there can be no assurance that there will be no such effect in the future.

     We finance substantially all of our inventory through various revolving floor plan arrangements with interest rates that vary based on the prime rate or LIBOR. Such rates have historically increased during periods of increasing inflation.

Forward Looking Statements

     This annual report on Form 10-K/A contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,” “intend,” “plan,” “estimate,” “predict,” “potential,” “forecast,” “continue” or variations of such terms, or the use of these terms in the negative. Forward-looking statements include statements regarding our current plans, forecasts, estimates, beliefs or expectations, including, without limitation, statements with respect to:

•

our future financial performance;

•

future acquisitions;

•

future capital expenditures;

•

our ability to obtain cost savings and synergies;

•

our ability to respond to economic cycles;

•

trends in the automotive retail industry and in the general economy in the various countries in which we operate dealerships;

•

our ability to access the remaining availability under our credit agreements;

•

our liquidity;

•

interest rates;

•

trends affecting our future financial condition or results of operations; and

•

our business strategy.

     Forward-looking statements involve known and unknown risks and uncertainties and are not assurances of future performance. Actual results may differ materially from anticipated results due to a variety of factors, including the factors identified in our filings with the SEC. Important factors that could cause actual results to differ materially from our expectations include the following:

•

the ability of automobile manufacturers to exercise significant control over our operations, since we depend on them in order to operate our business;

•

because we depend on the success and popularity of the brands we sell, adverse conditions affecting one or more automobile manufacturers may negatively impact our revenues and profitability;

•

if we are unable to complete additional acquisitions or successfully integrate acquisitions, we may not be able to achieve desired results from our acquisition strategy;

•

we may not be able to satisfy our capital requirements for making acquisitions, dealership renovation projects or financing the purchase of our inventory;

•

our failure to meet a manufacturer’s consumer satisfaction requirements may adversely affect our ability to acquire new dealerships, our ability to obtain incentive payments from manufacturers and our profitability;

•

automobile manufacturers may impose limits on our ability to issue additional equity and on the ownership of our common stock by third parties, which may hamper our ability to meet our financing needs;

•

our business and the automotive retail industry in general are susceptible to adverse economic conditions, including changes in interest rates, consumer confidence, fuel prices and credit availability;

•

substantial competition in automotive sales and services may adversely affect our profitability;

•

if we lose key personnel, especially our Chief Executive Officer, or are unable to attract additional qualified personnel, our business could be adversely affected;

•

our quarterly operating results may fluctuate due to seasonality in the automotive retail business and other factors;

•

because most customers finance the cost of purchasing a vehicle, increased interest rates may adversely affect our vehicle sales;

•

our business may be adversely affected by import product restrictions and foreign trade risks that may impair our ability to sell foreign vehicles profitably;

•

our automobile dealerships are subject to substantial regulation which may adversely affect our profitability;

•

if state dealer laws in the United States are repealed or weakened, our automotive dealerships may be subject to increased competition and may be more susceptible to termination, non-renewal or renegotiation of their franchise agreements;

•

our automotive dealerships are subject to foreign, federal, state and local environmental regulations that may result in claims and liabilities;

•

our dealership operations may be affected by severe weather or other periodic business interruptions;

•

our principal stockholders have substantial influence over us and may make decisions with which other stockholders may disagree;

•

some of our directors and officers may have conflicts of interest with respect to certain related party transactions and other business interests;

•

our level of indebtedness may limit our ability to obtain financing for acquisitions and may require that a significant portion of our cash flow be used for debt service;

•

due to the nature of the automotive retailing business, we may be involved in legal proceedings that could have a material adverse effect on our business;

•

our overseas operations subject our profitability to fluctuations relating to changes in foreign currency valuations; and

•		we are a holding company and as a result rely on the receipt of payments from our subsidiaries in order to meet our cash needs and service our indebtedness.
		Furthermore,

•

the price of our common stock is subject to substantial fluctuation, which may be unrelated to our performance; and

•

shares eligible for future sale may cause the market price of our common stock to drop significantly, even if our business is doing well.

     We urge you to carefully consider these risk factors in evaluating all forward-looking statements regarding our business. Readers of this report are cautioned not to place undue reliance on the forward-looking statements contained in this report. All forward-looking statements attributable to us are qualified in their entirety by this cautionary statement. Except to the extent required by the federal securities laws and Securities and Exchange Commission rules and regulations, we have no intention or obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

     Interest Rates. We are exposed to market risk from changes in the interest rates on a significant portion of our outstanding indebtedness. Outstanding balances under our U.S. and U.K. credit agreements bear interest at a variable rate based on a margin over defined LIBOR. Based on the amount outstanding as of December 31, 2004, a 100 basis point change in interest rates would result in an approximate $2.7 million change to our annual interest expense. Similarly, amounts outstanding under floor plan financing arrangements bear interest at a variable rate based on a margin over defined LIBOR or prime rates. We continually evaluate our exposure to interest rate fluctuations and follow established policies and procedures to implement strategies designed to manage the amount of variable rate indebtedness outstanding at any point in time in an effort to mitigate the effect of interest rate fluctuations on our earnings and cash flows. We are currently party to a swap agreement pursuant to which a notional $200.0 million of our floating rate floor plan debt was exchanged for fixed rate debt through January 2008. Based on an average of the aggregate amounts outstanding under our floor plan financing arrangements subject to variable interest payments, a 100 basis point change in interest rates would result in an approximate $9.0 million change to our annual interest expense.

     Interest rate fluctuations affect the fair market value of our fixed rate debt, including the Notes and certain seller financed promissory notes, but, with respect to such fixed rate instruments, do not impact our earnings or cash flows.

     Foreign Currency Exchange Rates. As of December 31, 2004, we have invested in franchised dealership operations in the U.K., Germany, and Mexico. In each of these markets, the local currency is the functional currency. Due to the Company’s intent to remain permanently invested in these foreign markets, we do not hedge against foreign currency fluctuations. In the event we change our intent with respect to the

investment in any of our international operations, we would expect to implement strategies designed to manage those risks in an effort to mitigate the effect of foreign currency fluctuations on our earnings and cash flows. A ten percent change in average exchange rates versus the U.S. Dollar would have resulted in an approximate $263.3 million change to our revenues for the year ended December 31, 2004.

     In common with other automotive retailers, we purchase certain of our new vehicle and parts inventories from foreign manufacturers. Although we purchase the majority of our inventories in the local functional currency, our business is subject to certain risks, including, but not limited to, differing economic conditions, changes in political climate, differing tax structures, other regulations and restrictions and foreign exchange rate volatility which may influence such manufacturers’ ability to provide their products at competitive prices in the local jurisdictions. Our future results could be materially and adversely impacted by changes in these or other factors.

Item 8. Financial Statements and Supplementary Data

     See the consolidated financial statements listed in the accompanying Index to Consolidated Financial Statements for the information required by this item.

Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure

     None.

Item 9A. Controls and Procedures

     We maintain disclosure controls and procedures designed to ensure that both non-financial and financial information required to be disclosed in our periodic reports is recorded, processed, summarized and reported in a timely fashion. Based on the fourth quarter evaluation, the principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective as of December 31, 2004. In addition, we maintain internal controls designed to provide us with the information it requires for accounting and financial reporting purposes. There were no changes in our internal controls over financial reporting that occurred during our fourth quarter of 2004 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. In addition, we have considered the restatement of our Consolidated Balance Sheets and Consolidated Statements of Cash Flows to comply with the guidance under Statement of Financial Accounting Standards No. 95, “Statement of Cash Flows” and have concluded that such restatement does not represent a material weakness in our internal control over financial reporting. The information set forth in “Management’s Report on Internal Control Over Financial Reporting” following the index to the Financial Statements is incorporated herein by reference.

Item 9B. Other Information

     Not applicable.

PART III

     The information required by Items 10 through 14 is included in the Company’s definitive proxy statement under the caption “Election of Directors,” “Executive Officers,” “Executive Compensation,” “Security Ownership of Certain Beneficial Owners and Management,” “Related Party Transactions,” “Other Matters” and “The Board of Directors and its Committees.” Such information is incorporated herein by reference. The following is a list of our executive officers and directors, including their principal occupation.

Name		Age				Position		Other Occupation
Roger S. Penske			68			Chairman of the Board,		Chairman of the Board and
						Chief Executive Officer		CEO of Penske Corporation
Samuel X. DiFeo			55			President, Chief Operating Officer
James R. Davidson			59			Executive Vice President —
						Finance
Robert H. Kurnick, Jr.			43			Executive Vice President,		President of Penske Corporation
						General Counsel
Paul F. Walters			61			Executive Vice President —		Executive Vice President —
						Human Resources		Administration of Penske Corporation
John D. Barr			56			Director		Chairman, Performance Logistics Group
Michael R. Eisenson			49			Director		Managing Director and CEO of Charlesbank Capital Partners, LLC
James A. Hislop			47			Director		Managing Director, Transportation Resource Partners, LLC
Hiroshi Ishikawa			42			Director		Executive Vice President — United Auto Group, Inc.
William J. Lovejoy			64			Director		Manager, Lovejoy & Associates, LLC
Kimberly J. McWaters			40			Director		CEO, Universal Technical Institute, Inc.
Eustace W. Mita			50			Director		Chairman, Achristavest, LLC
Lucio A. Noto			66			Director		Retired Vice Chairman, ExxonMobil Corporation
Richard J. Peters			57			Director		Managing Director, Transportation Resource Partners, LLC
Ronald G. Steinhart			64			Director		Retired Chairman and CEO Commercial Banking Group, Bank One Corporation
H. Brian Thompson			66			Director		Chairman, Comsat International

PART IV

Item 15. Exhibits and Financial Statement Schedules

     (1) Financial Statements

     The consolidated financial statements listed in the accompanying Index to Consolidated Financial Statements are filed as part of this Annual Report on Form 10-K/A.

     (2) Financial Statement Schedules — Schedule II — Valuation and Qualifying Accounts.

     (3) Exhibits — See the Index of Exhibits following this item.

SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on January 23, 2006.

United Auto Group, Inc.

By:		/s/ Roger S. Penske
		Roger S. Penske
		Chairman of the Board and
		Chief Executive Officer

     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this report has been signed by following persons on behalf of the registrant and in the capacities and on the date indicated.

Signature		Title		Date
		Chairman of the Board and		January 23, 2006
/s/ Roger S. Penske		Chief Executive Officer
Roger S. Penske		(Principal Executive Officer)
/s/ James R. Davidson		Executive Vice President — Finance		January 23, 2006
James R. Davidson		(Principal Financial Officer) (Principal Accounting Officer)
/s/ John Barr
John Barr		Director		January 23, 2006
/s/ Michael R. Eisenson
Michael R. Eisenson		Director		January 23, 2006
/s/ James A. Hislop
James A. Hislop		Director		January 23, 2006
/s/ Hiroshi Ishikawa
Hiroshi Ishikawa		Director		January 23, 2006
/s/ William J. Lovejoy
William J. Lovejoy		Director		January 23, 2006
/s/ Kimberly J. McWaters
Kimberly J. McWaters		Director		January 23, 2006
/s/ Eustace W. Mita
Eustace W. Mita		Director		January 23, 2006
/s/ Lucio A. Noto
Lucio A. Noto		Director		January 23, 2006
/s/ Richard J. Peters
Richard J. Peters		Director		January 23, 2006
/s/ Ronald G. Steinhart
Ronald G. Steinhart		Director		January 23, 2006
/s/ H. Brian Thompson
H. Brian Thompson		Director		January 23, 2006

INDEX OF EXHIBITS

Each management contract or compensatory plan or arrangement is identified with an asterisk.

3.1		Certificate of Incorporation (incorporated by reference to exhibit 3.2 to our Form 10-Q filed on August 9, 2004).
3.2		Bylaws (incorporated by reference to exhibit 3.4 to our Form 10-Q filed on August 9, 2004).
4.1.1		Indenture dated as of March 18, 2002 among us, as Issuer, and certain of our domestic subsidiaries, as Guarantors, and Bank One Trust Company, N.A., as Trustee (incorporated by reference to exhibit 4.3 to our registration statement on Form S-4, registration no. 333-87452, filed May 2, 2002).
4.1.2		First Supplemental Indenture dated as of December 19, 2003 among us, as Issuer, and certain of our domestic subsidiaries, as Guarantors, and J.P. Morgan Trust Company, N.A. (as successor in interest to Bank One Trust Company, N.A.), as Trustee (incorporated by reference to our 2003 Form 10-K filed March 15, 2004).
4.1.3		Second Supplemental Indenture dated as of July 12, 2004 among us, as Issuer, and certain of our domestic subsidiaries, as Guarantors, and J.P. Morgan Trust Company, N.A. (as successor in interest to Bank One Trust Company, N.A.), as Trustee (incorporated by reference to our originally filed Form 10-K filed March 14, 2005).
4.1.4		Third Supplemental Indenture dated as of January 5, 2005 among us, as Issuer, and certain of our domestic subsidiaries, as Guarantors, and J.P. Morgan Trust Company, N.A. (as successor in interest to Bank One Trust Company, N.A.), as Trustee (incorporated by reference to our originally filed Form 10-K filed March 14, 2005).
4.2		Second Amended and Restated Credit Agreement, dated as of September 8, 2004, among us, DaimlerChrysler Services North America, LLC and Toyota Motor Credit Corporation (incorporated by reference to our September 8, 2004 Form 8-K).
4.3		Seconded Amended and Restated Security Agreement dated as of September 8, 2004 among United Auto Group, Inc., DaimlerChrysler Services North America LLC and Toyota Motor Credit Corporation (incorporated by reference to Exhibit 10.2 to our September 8, 2004 Form 8-K).
4.4.1		Credit Agreement dated February 28, 2003 between Sytner Group Limited and The Royal Bank of Scotland plc, as agent for National Westminster Bank plc (incorporated by reference to exhibit 10.2 to our Form 10-Q for the quarter ended March 31, 2003).
4.4.2		Supplemental Agreement dated March 30, 2004 between The Royal Bank of Scotland plc acting as agent for National Westminster Bank Plc and Sytner Group Limited (incorporated by reference to our form 10-Q filed August 9, 2004).
4.4.3		Supplemental Agreement dated May 25, 2004 between The Royal Bank of Scotland plc acting as agent for National Westminster Bank Plc and Sytner Group Limited (incorporated by reference to our form 10-Q filed August 9, 2004).
10.1		Form of Dealer Agreement with Infiniti Division of Nissan North America, Inc. (incorporated by reference to exhibit 10.2.1 to our 2001 Form 10-K).

10.2		Form of Dealer Agreement with Jaguar Cars, a division of Ford Motor Company (incorporated by reference to exhibit 10.2.2 to our 2001 Form 10-K).
10.3		Form of Dealer Agreement With Honda Automobile Division, American Honda Motor Co. (incorporated by reference to exhibit 10.2.3 to our 2001 Form 10-K).
10.4		Form of Dealer Agreement with Lexus, a division of Toyota Motor Sales, U.S.A., Inc. (incorporated by reference to exhibit 10.2.4 to our 2001 Form 10-K).
10.5		Form of Car Center Agreement with BMW of North America, Inc. (incorporated by reference to exhibit 10.2.5 to our 2001 Form 10-K)
10.6		Form of SAV Center Agreement with BMW of North America, Inc. (incorporated by reference to exhibit 10.2.6 to our 2001 Form 10-K).
10.7		Form of Dealer Agreement with Toyota Motor Company (incorporated by reference to exhibit 10.2.7 to our 2001 Form 10-K).
10.8		Form of Dealer Agreement with General Motors Corporation (incorporated by reference to exhibit 10.2.8 to our 2001 Form 10-K).
10.9		Form of Dealer Agreement with Nissan North America, Inc. (incorporated by reference to exhibit 10.2.9 to our 2001 Form 10-K).
10.10		Form of Sales and Service Agreement with Chrysler Corporation (incorporated by reference to exhibit 10.2.10 to our 2001 Form 10-K).
10.11		Form of Mercedes-Benz USA, Inc. Passenger and Car Retailer Agreement (incorporated by reference to exhibit 10.2.11 to our Form 10-Q for the quarter ended March 31, 2000).
10.12		Form of Mercedes-Benz USA, Inc. Light Truck Retailer Agreement (incorporated by reference to exhibit 10.2.12 to our Form 10-Q for the quarter ended March 31, 2000).
10.13		Form of Mercedes Benz USA, LLC Maybach Passenger Car Dealer Agreement (incorporated by reference to exhibit 10.2 to our Form 10-Q for the quarter ended June 30, 2003).
10.14		Form of Sales and Service Agreement with Ford Motor Company (incorporated by reference to exhibit 10.2.13 to our 2001 Form 10-K).
10.15		Form of Dealer Agreement with Audi of America, Inc., a division of Volkswagen of America, Inc. (incorporated by reference to exhibit 10.2.14 to our 2001 Form 10-K).
10.16		Form of Dealer Agreement with Acura Division, American Honda Motor Co., Inc. (incorporated by reference to exhibit 10.2.15 to our 2001 Form 10-K).
10.17		Form of Sales and Service Agreement with Porsche Cars North America (incorporated by reference to exhibit 10.2.16 to our 2001 Form 10-K).
10.18		Form of Dealer Agreement with Land Rover North America, Inc. (incorporated by reference to exhibit 10.2.17 to our 2001 Form 10-K).
*10.19		Letter Agreement dated August 3, 1999 between us and Samuel X. DiFeo (incorporated by reference to our originally filed Form 10-K on March 14, 2005).
*10.20		Letter Agreement dated August 2, 2000 amending the Letter Agreement dated August 3, 1999 between us and Samuel X. DiFeo (incorporated by reference to our originally filed Form 10-K on March 14, 2005).