INTERVIEW-UPDATE 1-Group 1 sees no rise in April US auto sales
* Sees no uptick in April auto sales, no signs of recovery
* GM, Chrysler crisis "drag on sales"
* Has 1,000 more vehicles than targeted inventory
By Soyoung Kim
DETROIT, April 28 (Reuters) - Auto dealership Group 1 Automotive Inc (GPI.N) has not seen any uptick in U.S. auto sales in April and has no indication of a meaningful recovery in the near future, its chief executive said on Tuesday.
"It seems that we've been bouncing along the bottom here, but the bigger question is when we can see some significant improvement and I don't have any indication of that," Earl Hesterberg, Group 1's president and chief executive, told Reuters in an interview.
U.S. auto sales tumbled 38 percent in the first three months of 2009 to their lowest in nearly three decades. That has compounded the woes surrounding General Motors Corp GM.N and Chrysler LLC, which are surviving on $19.4 billion of government loans they received at the start of the year.
A recovery in sales is a critical element of the companies' survival at a time when the automakers are racing to complete sweeping cost cuts under the threat of a government-sponsored bankruptcy.
"It's been another drag on sales which we don't need in this difficult economic times," Hesterberg said of the uncertainty surrounding the fate of GM and Chrysler.
Hesterberg said the company's inventory for domestic brands remain "significantly above" its targeted level of 75 days of supply. But the overall inventory is "reasonably close" to where it needs to be after 7,000 vehicles were reduced from its stock in the first quarter, he said.
Houston-based Group 1 draws most of its sales from Texas and California, with the largest share of its new car sales coming from Japanese automakers Toyota Motor Corp (7203.T), Honda Motor Co Ltd (7267.T) and Nissan Motor Co Ltd (7201.T).
"We have about a thousand more than we'd ideally like to have at this time, but the selling rate should tick up, it's not our biggest problem at the moment," Hesterberg said.
The company operates 99 auto dealerships in the United States and Britain.
Group 1 shares were up 3.8 percent, or 69 cents, to $18.80 on the New York Stock Exchange. (Reporting by Soyoung Kim; Editing by Andre Grenon)
