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SEC Filings

10-K
PENSKE AUTOMOTIVE GROUP, INC. filed this Form 10-K on 02/24/2017
Entire Document
 

 

The following table shows our revenues by country, and by state in the U.S., as a percentage of our total revenue:

 

 

 

 

 

 

 

Country

  

% of Total 2016 Revenue

 

United States

 

 

 

60

%

 United States Revenue by State

 

 

 

 

 

   Arizona

 

6

%

 

 

   Arkansas

 

3

%

 

 

   California

 

11

%

 

 

   Connecticut

 

3

%

 

 

   Florida

 

3

%

 

 

   Georgia

 

4

%

 

 

   Indiana

 

1

%

 

 

   Maryland

 

1

%

 

 

   Minnesota

 

1

%

 

 

   New Jersey

 

8

%

 

 

   New York

 

1

%

 

 

   Ohio

 

2

%

 

 

   Oklahoma

 

1

%

 

 

   Puerto Rico

 

2

%

 

 

   Rhode Island

 

2

%

 

 

   Tennessee

 

1

%

 

 

   Texas

 

6

%

 

 

   Virginia

 

3

%

 

 

   Wisconsin

 

1

%

 

 

United Kingdom

 

 

 

32

%

Germany/Italy

 

 

 

5

%

Canada

 

 

 

1

%

Australia/New Zealand/Pacific

 

 

 

2

%

 

The U.K. is the second largest automotive retail market in Western Europe as measured by new units sold. We generated 94% of our revenue in the U.K. through the sale and service of premium brands in 2016. We believe we are among the largest Audi, Bentley, BMW, Ferrari, Jaguar/Land Rover, Lexus, Maserati, Mercedes-Benz, MINI, and Porsche dealers in the U.K. based on new unit sales. Additionally, we operate a number of dealerships in Germany, Western Europe’s largest automotive retail market, including through joint ventures with experienced local partners, which sell and service Audi, Lexus, Porsche, Toyota, Volkswagen and other brands. We also operate BMW, MINI, Maserati,  Porsche, Audi, Land Rover and Volvo dealerships in Northern Italy, as well as BMW and MINI dealerships in Spain, through joint ventures with local partners.

 

Diversification Through Retail Commercial Truck Dealership. Our PTG business provides more diversification to our overall business model and allows us to bring our automotive dealership expertise to the retail commercial truck market. The six dealerships acquired in Canada in 2016 further diversify our revenue stream.

 

Diversification Through Penske Truck Leasing. We currently hold a 23.4% ownership interest in PTL, a leading provider of transportation services and supply chain management, which further diversifies our total results of operations. In July 2016, we increased our ownership interest in PTL from 9.0% to 23.4% as a result of our acquisition of an additional 14.4% ownership interest, as discussed previously, which further diversifies our earnings potential.

 

Offer Outstanding Brands in Premium Facilities and Superior Customer Service

 

We offer outstanding brands in premium facilities and believe offering our customers a superior customer service experience will generate repeat and referral business and will help to foster a loyal and dedicated customer base. Customer satisfaction is measured at each of our automotive dealerships on a monthly, quarterly, and/or yearly basis by the manufacturers we represent, and we compensate our employees, in part, based on their performance in such rankings.

 

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