DETROIT — Penske Automotive Group Inc. mentioned its retail automotive enterprise enhanced in May well over sharp drops in enterprise in late March and April amid the coronavirus pandemic.
The nation’s second-premier new-motor vehicle retailer mentioned its May well U.S. new- and employed-motor vehicle profits have been down 25 p.c year over year, although U.S. provider and parts gross income declined 39 p.c.
That is greater than the drop of about 50 p.c Penske skilled in new and employed profits in April and its fifty two p.c decline in provider and parts gross income the exact same month amid stay-at-property orders.
Penske mentioned all of its U.S. dealerships’ profits and provider departments have been open up and that it was seeing sequential improvement in enterprise.
“I am inspired by the important improvement we continue on to see in our functions,” CEO Roger Penske mentioned in a assertion Tuesday. “Considering the fact that the COVID-19 pandemic began impacting functions in the second 50 % of March, we took steps to cut down charges and protect our liquidity position. Based mostly on these steps, I hope further advancements to our working final results in June and into the second 50 % of the year as the financial state proceeds to recover.”
The organization mentioned its dealerships in Germany, Italy and Spain also had reopened and enterprise was increasing week to week. Provider and parts enterprise resumed in mid-May well at United Kingdom dealerships, although showrooms in most of the U.K. reopened June 1, Penske mentioned. The dealerships had been shut due to the fact March 24 for each a governing administration purchase.
The retailer mentioned it was in a position to remotely market and provide about two,500 vehicles final month in the U.K. and had another 4,000-plus vehicles offered and awaiting supply at the commencing of June. In the to start with week of June, U.K. profits have been up 50 p.c in contrast with the exact same week a year earlier, Penske mentioned.
In late March, Penske announced executive pay cuts, furloughs and postponement of capital expenditures as element of initiatives to protect funds and trim fees due to the fact of the hit to enterprise from the coronavirus. The organization furloughed more than 50 % of its world-wide operate force, together with five,three hundred in the U.S., and terminated 500 staff.
Penske, of Bloomfield Hills, Mich., ranks No. two on Automotive Information‘ record of the top rated one hundred fifty dealership teams centered in the U.S., retailing 222,800 new vehicles in 2019. It retailed 284,two hundred employed vehicles for the exact same interval, ranking it No. two on Automotive News’ record of the top rated one hundred suppliers in employed-motor vehicle profits.