Penske Acquired Two California Dealerships

The serious drop in car sales caused a record number of dealer closures in 2009. The number of new car dealerships in the US dropped by 1,605 stores last year, leaving 18,841 dealerships standing. The news is not all bad however, as some new dealerships opened despite the recession.

Penske Automotive Group, which operates 310 retail automotive franchises, representing 40 different brands and 25 collision repair centers, just announced the acquisition of Audi and Volkswagen dealerships located in Santa Ana, California.

The two dealerships, Commonwealth Audi and Commonwealth Volkswagen are co-located in the Santa Ana Auto Mall, with the newly acquired dealerships helping Penske Automotive Group reach nine Audi and two Volkswagen dealerships in the United States. According to Penske Group’s calculations, the two new dealerships are expected to generate approximately $80 million in revenue annually.

“We are pleased to increase our presence in the southern California market with these outstanding brands, and we welcome the employees to the PAG team. These dealerships offer outstanding product portfolios in the volume and luxury segments and represent a tremendous opportunity for Penske Automotive Group to grow its business in this key geographic market,” said George Brochick, Executive Vice President for Penske Automotive Group’s Western Region.

Penske Group not only sells new cars, but also sells previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents. Penske has 160 franchises in 17 states and Puerto Rico, along with 150 franchises located outside the United States, primarily in the United Kingdom.