Penske Automotive Group Inc. is pausing on its goal to have its standalone used-vehicle CarShop locations sell 150,000 vehicles annually by the end of 2023, as it deals with higher costs of sales and vehicle acquisition woes.
Penske announced in February 2021 that it planned to expand its CarShop locations in the U.S. and U.K. to 40 by the end of 2023, up from 17 at the time, and nearly triple the unit's annual sales to 150,000 during the same period. It also aimed for the CarShop business by that time to generate annual revenue of between $2.5 billion and $3 billion and pretax earnings of about $100 million.
But the industry's vehicle shortage and increased competition to source used cars has disrupted Penske's ability to reach those goals. CarShop vehicle sales of 110,000 may be more realistic for 2023, CEO Roger Penske told Automotive News last month.