−Removed: Except as set forth below, during the six months ended June 30, 2022, there were no changes to the Risk Factors disclosed in Item 1A.
+Added: Except as set forth below, during the nine months ended September 30, 2022, there were no changes to the Risk Factors disclosed in Item 1A.
Risk Factors of our 2021 Form 10-K.
10 unchanged sentences
or our suppliers, could disrupt our operations, increase the cost or decrease the availability of certain materials necessary to produce vehicles we sell or obtain parts to complete maintenance and collision repair services, or make it difficult to access debt and equity capital on attractive terms, if at all, and impact our ability to fund business activities and/or limit future acquisition activity.
−Removed: Recent economic and financial developments, including rising inflation, high gas prices, increasing interest rates and the potential recessionary environment could adversely affect our operations and financial condition.
+Added: Recent economic and financial developments, including rising inflation, high energy prices, increasing interest rates and the potential recessionary environment could adversely affect our operations and financial condition.
During the Current Year, the global economy experienced rising inflation and an increase in gasoline and energy prices.
In response to inflationary pressures and macroeconomic conditions, the U.S.
−Removed: Federal Reserve, along with other central banks, continued to increase interest rates throughout 2022.
+Added: Federal Reserve, along with other central banks, including in the U.K., continued to increase interest rates throughout 2022, which could lower demand for new and used vehicles in future periods.
Additionally, U.S.
−Removed: GDP shrank for the second consecutive quarter as of the Current Quarter, indicating that the U.S.
+Added: GDP shrank for the second consecutive quarter as of the quarter ended June 30, 2022, indicating that the U.S.
economy may be entering a recession.
+Added: In Europe, rising energy costs as a result of supply disruptions and increased winter demand for heating could place additional strain on our suppliers’ ability to maintain current production levels of vehicles and vehicle parts.
+Added: Across the European Union, these energy constraints could result in nations or regions enacting emergency energy related policies, limiting energy availability for manufacturers.
+Added: Any such production constraints could further exacerbate an already ailing supply chain.
The impact of these macroeconomic developments on our operations cannot be predicted with certainty.
−Removed: Rising inflation and a prolonged recession could adversely impact our operations and customer demand for our vehicles and services.
+Added: Rising inflation, increased energy costs and a prolonged recession could adversely impact our operations, the operations of our suppliers and customer demand for our vehicles and services.
Refer to Item 1A.
Risk Factors of our 2021 Form 10-K for additional information regarding the potential impact of economic and financial risks on the Company.
−Removed: Continued interest rate increases could have a material adverse impact on our interest expense and ability to obtain financing through the debt markets.
+Added: Continued interest rate increases could have a material adverse impact on our interest expense and ability to obtain financing through the debt markets, as well as consumers’ ability to obtain financing for the purchase of new and used vehicles.
Refer to Item 3.
Quantitative and Qualitative Disclosures About Market Risk for additional analysis regarding our interest rate sensitivity.
+Added: Recent proposed changes to regulations could adversely impact our operations.
+Added: New laws and regulations at the state and federal level may be enacted which could materially adversely impact our business.
+Added: For example, in 2022, the Federal Trade Commission proposed new regulations for automotive dealers that would prohibit a wide range of current industry-accepted sales practices with regard to sales and advertising of our vehicles and products, require an extensive series of both oral and written disclosures to be made at the initial contact in regard to the sale price of vehicles, financial terms and voluntary protection products, mandate the posting of certain pricing and other information on dealer websites, and impose burdensome recordkeeping requirements.
+Added: Failure to adhere to these new policies could subject the Company to significant monetary and other penalties or require us to make adjustments to our products and services, any or all of which could result in lost revenues, increased expenses and substantial adverse publicity.
+Added: These changes, if adopted as proposed, may lead to additional transaction times for the sale of vehicles, complicate the transaction process, decrease customer satisfaction, and impose recordkeeping burdens on our employees, among other effects.
+Added: If these regulations or other adverse changes in law were to be enacted, it could have an adverse effect on our business.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.