Penske Automotive Addresses COVID-19
Penske Automotive Addresses COVID-19 Provides Operational Update |
[30-March-2020] |
BLOOMFIELD HILLS, Mich., March 30, 2020 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company, provided the following operational update regarding COVID-19 and initiatives in place to address its impact on the company's business. Commenting on the current situation, Penske Automotive Group CEO Roger Penske said, "The COVID-19 crisis is impacting our operations requiring us to take swift and decisive action to address declining business levels. I am confident the actions we are taking will help our business overcome these challenges." Company-Wide Actions Operational Update Commercial truck dealership sales and service operations remain open in most locations around the U.S. and Canada providing essential services to our customers. Currently, this part of our business is experiencing a consistent flow of service customers. Hours of service restrictions on motor carriers have been lifted for those involved in essential business support. We anticipate this will drive near term capacity demand as motor carriers shift trucks from other industries. Penske Transportation Solutions – The company has a 28.9% ownership interest in Penske Transportation Solutions ("PTS"). As an integral part of the supply chain and transportation infrastructure, PTS services have been largely deemed essential by government authorities. 73% of PTS business is generated by multi-year contracts for full-service leasing, contract maintenance and logistics services. PTS serves more than 17,000 contract customers in a wide range of industries. Commercial rental utilization for tractors and trailers remains consistent. Penske Logistics is experiencing mixed demand based on the industries served with increased activity in the grocery and medical sectors, and reduced demand in automotive and manufacturing due to temporary plant closures. Liquidity at PTS remains strong with over $1 billion available. United Kingdom – All dealerships closed on March 24th in accordance with government order. Business conditions in the U.K. were good through most of the month; however, new and used order intake declined significantly during the past ten days. Limited service/parts operations remain available. The U.K. has introduced the Coronavirus Job Retention Scheme whereby the government will reimburse the company for furloughed employees up to 80% of an employee's monthly earnings, up to certain limitations. Italy – All dealership locations are closed with service/parts available only on an emergency basis. The Italian government has put in place a program called "Casa Intergracion", which commenced March 30, 2020, to provide benefits to displaced workers. Germany – Virtual/online sales are available. Service/parts operation remain available; however, workshop utilization continues to decline. The German government has put in place a program called "KUG" to provide benefits to displaced workers. Australia – All non-essential business operations have been closed by government order; however, Penske Australia has been deemed essential, and therefore, parts, service, and defense functions remain operational. Spain – All dealership locations are closed, other than limited service/parts availability. The Spanish government has put in place a program called "ERTE", retroactive to March 16, 2020, to provide benefits to displaced workers. Japan – All dealerships and locations are operating normally. Liquidity Caution Concerning Forward Looking Statements About Penske Automotive Find a vehicle: http://www.penskecars.com
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Company Codes: NYSE:PAG |
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