Penske Automotive Issues Hiring Freeze
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.