Penske Automotive looking for new acquisitions

Article by Christian A., on February 19, 2011

Penske Automotive Group Inc. CEO Roger Penske recently told analysts that the company is being "opportunistic" about adding franchises but maintaining "strict financial discipline."

The nation’s second biggest auto retailer is open to acquisitions, but it's unlikely to return to its rapid pace of 2007 when it added $1.5 billion in revenues through store purchases. Fourth-quarter 2010 profit rose 53 percent, with higher sales of luxury vehicles offsetting losses at the Smart microcar brand.

Its net income rose to $28.5 million from $18.7 million a year earlier, and its fourth-quarter revenue rose 13 percent to $2.77 billion. In 2010, the company acquired eight franchises and opened 16 new points awarded by manufacturers.

The extra 24 franchises are forecasted to generate about $400 million in annual revenue. Penske said he could not guarantee that the company would match 2010’s revenue growth through purchases and new dealerships in 2011.

In 2010, Penske Automotive expended $80.9 million on capital expenditures - $60.4 million in the United States and $20.5 million worldwide. The company expects to spend about $100 million in 2011, split evenly between the American and international operations. [via autonews - sub. required]

If you liked the article, share on:

Topics: penske

Comments

Recommended

Before the W177 goes on sale in 2018, Mercedes-Benz had to go back to the drawing board to check on the A Class’ interior. This is because the new model...
by - November 24, 2017
If you see the Aston Martin’s 2018 Vantage, you would think that it is significantly different from most of Aston’s GT lineup. For instance, if the DB11 is a fine...
by - November 24, 2017
Even as Chevrolet is making a huge splash in the industry with the recent launch of the new Corvette ZR1, there may be trouble brewing. Chevrolet has announced huge discounts...
by - November 24, 2017
The 2018 GMC Sierra 2500HD has arrived this week at the snowy mountains in Colorado for its winter long debut. GMC’s tracked Sierra Mountain Concept will be on display at...
by - November 24, 2017
We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries