Penske Automotive Group Sees Q2 Income Hike
Penske Automotive Group reported a 10% rise in income to $375.9 million in the second quarter, its most profitable quarter ever.

Penske
Penske Automotive Group reported a 10% rise in income to $375.9 million in the second quarter, its most profitable quarter ever.
Still, revenue slipped 1.2% to $6.91 billion, Penske reported was hurt by foreign currency exchange,
Penske experienced a higher new-vehicle gross profit per vehicle, saw gains in finance and insurance (F&I) profit per vehicle, and higher used-vehicle and service and parts revenue.
While most of the auto group’s revenue comes from automotive retail, the company also reported that pretax earnings in its commercial truck dealerships surged 32%. In addition pretax earnings for its Australian unit increased 5%, and income from its ownership stake in Penske Transportation Solutions rose 33%.
“Despite the supply constraints that continue to impact inventory availability, demand remains strong and we continue to benefit from the diversification of our operations,” CEO Roger Penske said in a statement Wednesday.
Penske's standalone used-vehicle CarShop division saw revenue increase 15% to $468 million on sales of 20,124 vehicles. But the unit lost $1.5 million pretax because of higher acquisition and reconditioning costs, the company said.
Though Penske closed two CarShop express locations in the UK, the company still operated 21 CarShop outlets in the quarter.
Penske also announced plans to buy five Mercedes-Benz dealerships and three aftersales locations in London from Mercedes-Benz Retail Group. Combined, the company forecasts those sites to generate about $550 million in revenue in 2022.
Originally posted on Auto Dealer Today
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