January 2008.ppt

Our Business Strategy What is Penske Automotive? Overview 2nd Largest Auto Retailer in the U.S. #205 on Fortune 500 315 Dealerships: U.S. – 170; 65 Locations International – 145; 86 Locations Operate in 18 States and 4 Countries 40 Vehicle Brands 26 Collision Repair Centers 16,000 Employees Retail Unit Volume YTD Worldwide Revenue Mix U.S. Revenue Mix Intl. Revenue Mix Highly Productive Dealerships Toyota 788 1,872 3,033 Honda 627 1,346 2,492 Lexus 531 1,489 1,791 BMW 145 869 1,656 Nissan 487 880 1,507 Mercedes-Benz 146 742 1,052 General Motors 242 275 973 Ford 331 343 865 Service Parts Drives Gross Profit Industry Challenges Overall Economic Landscape Credit Issues Housing market Fuel Prices Changing CAFE Standards Balance OEM mandated Facility Requirement Costs Getting products to market on a timely basis Vehicle Distribution It is as fair as an unfair system can be Has evolved from highly subjective to highly objective process Get the right car in the right quantity, in the right place at the right time OEMs today bear a remarkable similarity in their distribution process Still too much complexity and wasted time and effort UK Distribution Positives Internet and web based OEM systems allow management of this asset 24/7 Math based allocation systems create a more level playing field Sophisticated market diagnostics add additional science to planning and managing vehicle inventories Today’s dealers typically have adequate supply of vehicles What Can Be Improved Planning horizons far too long at retail Decision criteria still based on historical data and behavior Retail inventories are the result of product planning/production decisions Dealers must understand the system smart USA Appointed Exclusive Distributor for the smart fortwo in the United