Strong Used Performance Helps Lift Penske in 4Q
Pushed by a used-vehicle performance that left the company’s chairman “extremely pleased,” Penske Automotive Group closed its most profitable year ever on a high note.
Penske’s fourth-quarter used retail sales climbed 20 percent at 32,183 units, which helped lead to a 10.6-percent retail sales spike (including new and used) for the group during the period. That overall retail uptick was a major factor in Penske pulling in $3.0 billion in revenue for the quarter, up 10.8 percent year-over-year.
“Our fourth-quarter results continue to demonstrate the strength of the automotive retail model and the benefit from our premium/luxury brand mix in both the U.S. and international markets,” said company chairman Roger Penske. “We produced another outstanding quarter of profitability while generating same-store revenue increases in each area of our business.
"I am extremely pleased with the continued strong performance of our used-vehicle business, which increased same-store retail unit sales by 16 percent and same-store retail revenue by 14 percent, and our service and parts operations gross margin which added 120 basis points to 57.3 percent," he added.
But that strategy isn't written in stone, according to Business Insider, as the retail push could ramp up if the stores start to earn their keep or if Microsoft wants retail space to sell a specific product. Responding to a question about the retail