Penske, headed by race-car legend Roger Penske, appears to be on the right track as a diversified transportation firm. Penske is a partner with GE Equipment Management in Penske Truck Leasing, a commercial truck rental operation with more than 200,000 vehicles at some 1,000 locations. Penske owns more than a third of publicly-traded auto dealer Penske Automotive Group (formerly United Auto Group), which runs 330-plus franchised dealerships in some 20 states, Puerto Rico, and the UK. Through Penske Motor it sells cars in California. Truck-Lite makes safety lights for boats, buses, cars, commercial trucks, construction equipment, and recreational vehicles. Roger Penske is the company's majority owner.
Diversified transportation services company Penske Corporation operates its business globally through a variety of industry segments.
Sales and Marketing
Penske Corporation, through its multiple subsidiary companies, serves several sectors, such as retail automotive, truck leasing, transportation logistics, transportation component manufacturing, and professional motorsports.
Altogether, Penske Corporation's businesses generate revenues of $19 billion.
Turmoil in the US auto industry and the deep recession had curtailed demand for leased trucks. It also stalled auto sales at the company's Penske Automotive Group, the nation's second-largest dealership group and a key asset of Penske Corporation. To this end, the diversified transportation services company has been cutting costs.
It's also engaged in a more prudent, rather than aggressive, acquisition strategy. Its Penske Automotive Group bolstered international revenues by buying a 50% stake in Alliance Motor Tyumen, a Russian car dealership that is owned by Mitsui & Co. (Japan-based Mitsui is PAG's second-largest shareholder.) The company jump-started its Penske Truck Leasing unit in 2010 by acquiring Dallas-based Bright Truck Leasing & Bright Distribution. The deal boosted its full-service truck leasing, truck rental, maintenance, and logistics operations; it also added about 20 Texas locations that serve some 2,400 customers. Penske's fleet also grew by about 3,400 tractors, trucks, and trailers. Other Penske interests include Michigan-based DAVCO, a leader in Class 8 heavy duty diesel powered truck fuel-heater/water separators and filter systems.
In 2013 Penske Corporation and Shell agreed to a multi-year extension of their ongoing alliance in North America. As part of the agreement, Shell and Pennzoil will continue to sponsor Penske Racing entries in the NASCAR Sprint Cup Series and the IZOD IndyCar Series. It will also continue to be the preferred supplier of fuels, lubricants, and related products to the Penske organization.
Chairman Penske is also a managing member of Transportation Resource Partners, an organization that invests in transportation-related industries, including component maker Autocam (acquired in 2004).
The billionaire auto mogul made headlines with the proposed rescue of General Motors' Saturn brand by Penske Automotive Group (PAG). However, Penske backed out of the deal in 2009 after an agreement to get cars from France's Renault fell through.