Penske Automotive's fourth-quarter retail sales of new vehicles dropped 0.3 percent to 59,573, while revenue per new vehicle retailed fell 3 percent to $37,604. The average gross profit per new car fell 2.8 percent to $2,966.
Penske Automotive Group Inc. said it has acquired Jaguar and Land Rover dealerships in Paramus, N.J.
The auto retailer expects to add about $215 million in revenue from the deal with the New Jersey-based Prestige Family of Fine Cars, according to a Penske statement on Tuesday. The companies did not disclose a purchase price.
Penske Automotive posted $20.1 billion in revenue in 2016, up 4.3 percent from $19.3 billion in 2015. It sold 457,251 new and used vehicles last year vs. 431,983 in 2015.
"We welcome the employees to the Penske Automotive Group team and look forward to working with them to grow the Jaguar and Land Rover businesses in this important market area," said Penske President Robert Kurnick.
The purchase gives Penske Automotive, of Bloomfield Hills, Mich., five Jaguar and Land Rover dealerships in the U.S. The company also owns 19 Jaguar-Land Rover dealerships in the U.K.
Even so, sales at its Jaguar-brand stores came to less than 1 percent of Penske Automotive’s 2016 total global automotive dealership revenue, according to the company’s fourth-quarter earnings presentation. Land Rover dealerships worldwide represented 6 percent of the company’s global automotive dealership revenue. That 6 percent was roughly equal to revenue from Penske’s Porsche stores, but well behind 25 percent from BMW-Mini dealerships, 14 percent from Audi stores and 10 percent from Mercedes-Benz stores.
Chairman Roger Penske wants more Jaguar Land Rover stores, but in the right location.
“We like them in contiguous markets where we already have infrastructure and scale,” Penske told Automotive News in January. “We’re a big fan of Jaguar Land Rover and we have a nice presence here in the US. We think the combination of the brand has made a big difference for us.”
Another brand Penske is eyeing is Volkswagen. Earlier last year, Penske Automotive added five VW stores in the UK with the purchase of the Lighthouse Group. The deal also included an Audi store and a BMW store.
“We felt that based on the customer acceptance, we couldn’t see the impact (of VW's ongoing emissions scandal) in the UK as we had here in the U.S.,” Penske said. “It was a nice group of stores.”
PAG operates 72 Volkswagen franchises between the UK, Germany and the U.S. markets.
Jamie LaReau of Automotive News contributed to this report.