Jul29
Penske Automotive quarterly profit decline 63%
DETROIT (Reuters) -- Penske Automotive Group Inc. today said it posted a 63 percent decline in quarterly profit as the recession hurt consumer demand for new vehicles. The second-largest U.S. car dealership group, which has agreed to buy General Motors' Saturn brand, said due diligence and negotiations are continuing. Net income fell to $14.2 million in the second quarter from $38.3 million a year earlier. Revenue declined 30 percent to $2.3 billion. Suburban Detroit-based Penske operates more than 310 retail automotive franchises selling new and used vehicles, replacement parts and finance products. Automakers, dealers and parts suppliers have all suffered steep declines in revenues this year, with U.S. auto sales down to their lowest levels since the early 1980s amid tight credit and fragile consumer confidence. In June, Penske reached a tentative deal with GM to buy its Saturn brand with the goal of completing the transaction in the third quarter. Under the deal, Penske would acquire rights to the Saturn brand and other assets, while GM would continue production of the Saturn Aura, Vue and Outlook on a contract basis.
SOURCE: [ Automotive News }
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