Previous Issues | Current Headlines | Point of View | Obituaries


Penske’s U.S. Service & Parts Sales Rose 8.9% In Q3

The Penske Automotive Group (Bloomfield Hills, MI) saw its service and parts revenue increase 4.4 percent to $381.49 million in the third quarter of 2013. The $16.10-million uptick in service and parts revenue included an 8.9-percent rise in the United States and a 5.8-percent decrease internationally. The increase was due to a $12.30-million (3.4 percent) increase in same-store revenues during the period, coupled with a $3.80-million increase from net dealership acquisitions.

Management attributed the increase in same-store revenue to …
• A $6.40-million (2.5 percent) increase in customer-pay revenue;
• A $5.20-million (6.9 percent) increase in warranty revenue;
• A $500,000 (10.3 percent) increase in vehicle preparation revenue; and
• A $200,000 (0.9 percent) increase in body shop revenue.

Service and parts gross profit increased $18.40 million (8.7 percent) to $229.50 million, including an 11.2-percent increase in the United States and a 2.9-percent increase internationally. The increase was ascribed to a $14.60-million (7 percent) increase in same-store gross profit during the period, coupled with a $3.80-million increase from net dealership acquisitions.

According to Penske’s management team, the same-store gross profit increase came from the aforementioned 3.4-percent increase in same-store revenues, which increased gross profit by $7.40 million, coupled with a 3.4-percent increase in gross margin, which increased gross profit by $7.20 million. The same-store gross profit increase was due to …
• A $6.10-million (18.3 percent) increase in vehicle preparation gross profit;
• A $4.00-million (10.6 percent) increase in warranty gross profit;
• A $3.50-million (2.8 percent) increase in customer-pay gross profit; and
• A $1.00-million (7 percent) increase in body shop gross profit.

The Penske Automotive Group is the second largest automotive retailer headquartered in the United States as measured total revenue. The company operates 321 total retail automotive franchises, of which 171 are located in the United States and 150 are located outside of the United States (primarily in the United Kingdom).

We encourage you to add your comments below concerning this article.

Back To Story List