Penske Automotive to cut executive pay, furlough employees, postpone capital expenditures

Penske Automotive Group stated it is slashing government pay, furloughing staff, suspending $a hundred and fifty million in funds expenses and using a selection of other ways to “to assistance mitigate the fiscal and operational affect of COVID-19.”

CEO Roger Penske and President Robert Kurnick will accept no income for the length of the coronavirus outbreak, though executives and administrators across the enterprise also are using pay cuts, Penske spokesman Anthony Pordon stated Monday. Pordon stated Penske was not disclosing how numerous staff would be furloughed, nor how numerous would see reductions in compensation, or how considerably. The enterprise also is freezing choosing.

In addition, the board of directors has waived its funds compensation for 6 months, the second-most significant U.S. dealership team stated in a statement.

“The COVID-19 crisis is impacting our functions requiring us to acquire swift and decisive action to address declining business concentrations,” Penske stated in the statement. “I am self-confident the steps we are using will assistance our business prevail over these challenges.”

Penske also stated it has properly negotiated hire deferrals for up to 90 times at numerous spots

“The vast majority of OEMs the enterprise signifies, and their respective captive finance organizations, have available significant aid during this crisis, which includes desire payment deferrals,” Penske stated in the filing.

Penske stated its U.S. dealership business over the previous ten times has found declines in revenue volume and support and sections revenues, while the enterprise did not give details.

The retailer stated continue to be-at-property orders in numerous states are restricting dealership functions. U.S. support departments continue being open up, and Penske stated digital and on the internet revenue of new and applied motor vehicles are out there in most of its spots.

Past 7 days, Group one Automotive stated it would furlough three,000 staff for at least thirty times, furlough about two,800 staff in the United Kingdom for at least 21 times and would slash government salaries because of the coronavirus. Group one stated U.S. revenue volumes were down 50 to 70 p.c from a regular March.