BLOOMFIELD HILLS, Mich., Sept. 28,
2023 /PRNewswire/ -- Penske Automotive Group, Inc.
(NYSE: PAG), a diversified international transportation services
company and one of the world's premier automotive and commercial
truck retailers, today announced that severe storms at its Genesis,
Honda, Hyundai, and Toyota dealerships located in Round Rock, Texas, disrupted operations and
caused significant hail damage to over 750 new, used and customer
service loaner vehicles. The Company estimates these vehicles
represent over $27 million in
inventory value. Most of the damaged vehicles are not
repairable and are anticipated to be total losses.
The Company is assessing the damage caused by these severe
storms to determine their financial impact. Although a
portion of the damage is expected to be covered by insurance, the
Company will incur the potential loss of new and used vehicles
sales and will be responsible for its insurance deductibles. The
Company is working with each manufacturer to replace the damaged
inventory as soon as possible, although it cannot predict when
replacement inventory will be available.
About Penske Automotive
Penske Automotive Group, Inc., (NYSE: PAG) headquartered in
Bloomfield Hills, Michigan, is a
diversified international transportation services company and one
of the world's premier automotive and commercial truck retailers.
PAG operates dealerships in the United
States, the United Kingdom,
Canada, Germany, Italy, and Japan and is one of the largest retailers of
commercial trucks in North America
for Freightliner. PAG also distributes and retails commercial
vehicles, diesel and gas engines, power systems, and related parts
and services principally in Australia and New
Zealand. PAG employs over 27,000 people worldwide.
Additionally, PAG owns 28.9% of Penske Transportation Solutions
("PTS"), a business that employs over 43,000 people worldwide,
manages one of the largest, most comprehensive and modern trucking
fleets in North America with over
431,000 trucks, tractors, and trailers under lease, rental, and/or
maintenance contracts and provides innovative transportation,
supply chain, and technology solutions to its customers. PAG is a
member of the S&P 400 Mid Cap Index, Fortune 500, Russell 1000,
and Russell 3000 indexes. For additional information, including the
Company's 2022 ESG Report highlighting its ESG strategies,
activities, and certain metrics, visit the Company's website at
www.penskeautomotive.com.
Caution Concerning Forward Looking Statements
Statements in this press release may involve forward-looking
statements, including forward-looking statements regarding Penske
Automotive Group, Inc.'s future revenue and plans. Actual results
may vary materially because of risks and uncertainties that are
difficult to predict. These risks and uncertainties include, among
others, those related to macro-economic, geo-political and industry
conditions and events, including their impact on new and used
vehicle sales, the availability of consumer credit, changes in
consumer demand, consumer confidence levels, fuel prices, personal
discretionary spending levels, interest rates, and unemployment
rates; our ability to obtain vehicles and parts from our
manufacturers, especially in light of supply chain disruptions due
to natural disasters, the shortage of vehicle components, the war
in Ukraine, challenges in sourcing
labor, or labor strikes or work stoppages, or other disruptions;
changes in the retail model either from direct sales by
manufacturers, a transition to an agency model of sales, sales by
online competitors, or from the expansion of electric vehicles; the
effects of a pandemic on the global economy, including our ability
to react effectively to changing business conditions in light of
any pandemic; the rate of inflation, including its impact on
vehicle affordability; changes in interest rates and foreign
currency exchange rates; our ability to consummate and integrate
acquisitions; with respect to PTS, changes in the financial health
of its customers, labor strikes or work stoppages by its employees,
a reduction in PTS' asset utilization rates, continued availability
from truck manufacturers and suppliers of vehicles and parts for
its fleet, potential decreases in the resale value of used vehicles
which may affect PTS' ability to sell its used vehicles after the
expiration of its customers' leases or at the end of its holding
period for rental vehicles, which may affect PTS' profitability and
regulatory risks and related compliance costs; our ability to
realize returns on our significant capital investment in new and
upgraded dealership facilities; our ability to navigate a rapidly
changing automotive and truck landscape; our ability to respond to
new or enhanced regulations in both our domestic and international
markets relating to automotive and commercial truck dealerships and
vehicles sales, including those related to the sales process or
emissions standards, as well as changes in consumer sentiment
relating to commercial truck sales that may hinder our or PTS'
ability to maintain, acquire, sell, or operate trucks; the success
of our distribution of commercial vehicles, engines, and power
systems; natural disasters; recall initiatives or other disruptions
that interrupt the supply of vehicles or parts to us; the outcome
of legal and administrative matters, and other factors over which
management has limited control. These forward-looking statements
should be evaluated together with additional information about
Penske Automotive Group's business, markets, conditions, risks, and
other uncertainties, which could affect Penske Automotive Group's
future performance. The risks and uncertainties discussed above are
not exhaustive and additional risk and uncertainties are addressed
in Penske Automotive Group's Form 10-K for the year ended
December 31, 2022, its Form 10-Q for the quarterly periods
ended March 31, 2023, and
June 30, 2023, and its other filings
with the Securities and Exchange Commission. This press release
speaks only as of its date, and Penske Automotive Group disclaims
any duty to update the information herein.
Inquiries should
contact:
|
|
|
Shelley
Hulgrave
|
Anthony
Pordon
|
Executive Vice
President and
|
Executive Vice
President Investor Relations
|
Chief Financial
Officer
|
and Corporate
Development
|
Penske Automotive
Group, Inc.
|
Penske Automotive
Group, Inc.
|
248-648-2812
|
248-648-2540
|
shulgrave@penskeautomotive.com
|
tpordon@penskeautomotive.com
|
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SOURCE Penske Automotive Group, Inc.