March 31, 2020—Penske Automotive announced an operational update regarding the COVID-19 virus as it continues to impact the company's operations. Automotive dealership operations virtually throughout the U.S. have experienced a decline in unit volume, and service and parts revenues.
The company noted in a press release that it has implemented a company-wide hiring freeze, expense reductions, staffing adjustments, the postponement of an estimated $150 million in capital expenditures, and negotiated rent deferrals for up to 90 days at various locations.
Executive and management compensation has been significantly reduced, including a 100 percent reduction in salary for the CEO and president for the duration of the crisis and the board of directors has waived cash compensation for the next six months.
Stay up to date with the latest in Ratchet+Wrench's coronavirus coverage.
