Penske reports strong 2nd quarter, expands its online sales pilot

Penske Automotive Group Inc. reported record earnings in the second-quarter and said it'll increase its on-line sales pilot system, identified as "Favorite Purchase," to more shops in the 3rd quarter. Penske found Favorite Purchase in March on web sites of five Florida shops and six Washington, D.C.-place shops. Penske has 244 car dealers. Penske is rolling out Favorite Purchase to nine shops in Tx and can add it to its five shops in Atlanta after in August. Favorite Purchase empowers clients to manage most of a trade online, which reduces the time invested in a shop. In addition, it enhances pricing transparency, Penske claims, by permitting an individual to analyze vehicles, take up a purchase or finish most of the obtain at home. The close ratio in the 11 Favorite Purchase shops is now one-fifth, or "2-and-a-half times more than what we had on our standard Internet prospects," Chairman Roger Penske informed Automotive Information. "Trades are somewhat shorter in time frame, also it is stream lined the revenue [study] procedure to below one hour. So that it is reaching the impact we would like." Penske, the 2nd-biggest U.S.-based car dealer group, noted that second quarter net revenue increased 29 percent driven mainly by a high quantity of car revenue and a strong performance in all-business sections. Sales rose 12% to $4.90 billion. But the increases concealed drops in per-car gross revenue, offset by higher quantity. Retail sales volume grew 7.5% to 108,277 models. The business retailed 58,758 new autos, up 6.3%, and 49,519 utilized autos, up 8.8%. On a same-store basis, retail sales rose 6% to $4.5 billion. But gross revenue per new-vehicle fell 4.3% to $2,992. Gross profit per used-vehicle dropped 10 per cent to $1,780. Penske's same-store retail sales of new models increased 5.7%, to 58,191, defeating the 3.3 percent increase in U.S. industry-wide light-car revenue for the quarter. About 72% of the items Penske sells are luxury cars. Penske stated per-car gross profits endured because of limited stock for a few of the brands. On the other hand, he explained, there was more accessibility in the large-quantity import brands. "The typical premium high-end gross revenue is twice what it's on a quantity brand. Therefore I can sell half the amount of automobiles in premium and create everything you must do twice on the the quantity facet," Penske stated. "That is clearly likely to get some impact due to availability." He explained great margins On-Land Rover and Porsche revenue aid stave off a larger gross profit decrease. "I take my hat off to my administration staff as they handled through, keeping increase," mentioned Penske. "It is marketplace-to-marketplace and combination that make an impact." Penske Automotive ranks No. 2 on the Automotive News list of the top 150 U.S.-centered car dealer groups, with retail revenue of 216,462 new automobiles in 2014.

It's possible for you to reach Jamie LaReau at [email protected]. -- Follow Jamie on

Labels:
Dealers
Retail

Internet
Roger Penske
Penske Corp.

Marketing

Read Source

03.08.2015
ID:2594

More news from this source:

1. Tell us about retail high achievers under 40
2. Suits target price-fixing parts makers
3. Soaring on the wings of the snowbirds
4. Volvo recalls 59,000 cars over software fault
5. Hyundai Ioniq targets Prius, but not in sales