DETROIT — Penske Automotive Group Inc.'s buy-sell strategy will be under constant analysis this year, with perhaps a heightened emphasis on the sell side.
That's the implication of what Chairman Roger Penske told Automotive News will be a comprehensive review of operations at the nation's second-largest auto retailer.
"I see us really looking at every store we have, no matter the brand, and if we're not hitting the return, we have to fix it," said Penske. "If we can't fix it, we will divest" that dealership.
Penske's plan is logical in today's market, buy-sell adviser Alan Haig said.
"Any group that has a portfolio of dealerships, if a store's not performing at the peak of the market, odds are it's not going to perform in the future, when things get worse," said Haig, president of Haig Partners in Fort Lauderdale, Fla.
Haig has seen large dealership groups thinning their portfolio of stores and "selling off the ones that don't fit either because they don't make that much money, or they're an outlier on the market, or they've lost confidence in the brand."