Penske Automotive Group mentioned it was chopping govt compensation, shedding workers, deferring $ 150 million in capital spending and taking a sequence of different steps to “assist mitigate the monetary and operational impression of COVID-19 “.
CEO Roger Penske and Chairman Robert Kurnick is not going to settle for any pay in the course of the coronavirus outbreak, whereas executives and managers on the Bloomfield Hills-based firm are additionally accepting pay cuts, the door mentioned on Monday. – spoken by Penske, Anthony Pordon. Pordon mentioned Penske isn’t disclosing what number of workers shall be fired, what number of will see pay cuts, or what number of. The corporate can be freezing hiring.
As well as, the board of administrators waived his money compensation for six months, America’s second-largest seller group mentioned in a press release.
“The COVID-19 disaster is impacting our operations, forcing us to take swift and decisive motion to take care of declining exercise ranges,” Penske mentioned within the assertion. “I’m assured that the actions we’re taking will assist our firm overcome these challenges.”
Penske additionally mentioned it has efficiently negotiated hire deferrals of as much as 90 days in lots of places.
“Nearly all of the OEMs the corporate represents, and their respective captive finance firms, have provided important assist throughout this disaster, together with deferral of curiosity funds,” Penske mentioned within the assertion.
Penske mentioned its dealership enterprise in the US over the previous 10 days has seen a decline in gross sales quantity and revenues from providers and elements, though the corporate didn’t give particulars.
The retailer mentioned door-to-door orders in lots of states restricted seller operations. U.S. service departments stay open, and Penske mentioned digital and on-line gross sales of recent and used automobiles can be found at most of its places.
Globally, Penske additionally faces dealership closures within the UK, Spain and Italy. On March 24, it needed to shut all dealerships within the UK below a authorities order, though restricted service and elements operations stay open.
Its dealerships in Italy are additionally closed, with service and elements out there within the occasion of an emergency. All Penske-owned dealerships in Spain are additionally closed with restricted service and elements operations and gross sales in Germany are restricted to digital and on-line gross sales solely.
Penske mentioned he has $ 1.3 billion in money, together with $ 850 million in money and money out there via out-of-plan credit score and round $ 450 million in actual property that he may doubtlessly fund.
The corporate’s inventory closed at $ 28.43 a share on Monday, up 2.9%, though that is down 39% from its closing worth on March 2.
Penske ranks # 2 on Automotive Information’ record of the highest 150 U.S.-based seller teams, with 222,800 new automobiles retailing in 2019.