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Penske Automotive Reports Solid Service & Parts Growth

The Penske Automotive Group (Bloomfield Hills, MI) saw its service and parts revenue increase $24.28 million (or 6.8 percent) during the first quarter of 2013, including a 9.1-percent rise in the United States and a 1.4-percent increase internationally. The increase breaks down as an $11.20-million (3.1 percent) increase in same-store revenue during the period and a $13.10-million increase from net dealership acquisitions.

The increase in same-store revenue came from a $5.80-million (2.3 percent) rise in customer-pay revenue, a $4.60-million (6.1 percent) increase in warranty revenue, a $600,000 (2.6 percent) rise in body shop revenue; and a $200,000 (3.1 percent) increase in vehicle preparation revenue.

In all, service and parts accounted for 11.3 percent of Penske’s total sales for the quarter. Roughly 70 percent of the company’s parts and service business in the quarter was customer-pay.

Service and parts gross profit increased $16.30 million (7.9 percent) to $223.90 million, while gross margin rose 60 basis points to 58.4 percent.

Penske Automotive operates 342 retail automotive franchises, representing 40 different brands, as well as 30 collision repair centers. It has 174 franchises in 18 states and Puerto Rico, in addition to 168 franchises located outside the United States, primarily in the United Kingdom.

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