Penske Trims in Wake of COVID-19

By Staff Writer April 01, 2020 645

Penske Automotive Group Inc. announced a hiring freeze, negotiated rent deferrals for up to 90 days and a postponement in $150 million in capital expenditures.

“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,” Penske Automotive Group CEO Roger Penske said.

The company reported that the majority of OEMs the company represents, and their respective captive finance companies, have offered significant support during this crisis, including interest payment deferrals. In addition, executive and management compensation has been significantly reduced, including a 100 percent reduction in salary for the CEO and president for the duration of the crisis and the board of directors has waived cash compensation for the next six months.

The company said virtual/online sales of new and used vehicles remain available in most locations, while the service departments remain open to support critical transportation needs.  

Commercial truck dealership sales and service operations remain open in most locations around the U.S. and Canada. Currently, this part of their business is experiencing a consistent flow of service customers, the report said. Hours of service restrictions on motor carriers have been lifted for those involved in essential business support. 

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Last modified on Wednesday, 01 April 2020 14:35