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-- seen actually is markedly better news coming out of the auto industry auto sales higher and it just looks like a serious come back.
Well it's certainly might look like death from Penske auto group's perspective Penske just reported.
The most profitable here in its entire history this company's been around but we have fourth quarter profits soaring 65%.
Joining us now on the phone with the Fox Business exclusive for Bloomfield hills Michigan.
Roger Penske the chairman and CEO -- Penske Automotive Group but Roger I think you know your numbers look terrific and I just really seems to me.
That people buy cars again what's your biggest seller what really drove your numbers here to bring you to such a profitable year.
Willis thank you Korea data -- on the -- -- -- -- bad when we look at the fourth quarter you know we're primarily in the premium luxury side so.
You know he had Mercedes there Alexis -- BMW -- really was strong programs.
In Q4 which shares just drove a tremendous.
Market -- at the end of the year both the November December and I think also what happened the inventories so they're Japanese three -- -- obviously were affected with -- tsunami we start to get more inventory from the standpoint on the US side.
And again we're an international player also we saw the same -- Internet stated the premium brands this are beginning to get better when you look at the UK market -- and well we have a big concentration there's concern about contagion from Europe bright and what will -- get the premium luxury side you go back three years.
That premium countryside is grown.
400 basis points from eighteen to 22% of the market so.
We've been able to ride on the coattails of that bill that's been you know one -- the real benefits but to me.
When I look at that market actually what's happening we have an older car -- -- Going to seven years we have diet -- -- -- -- spend many many years to win the lowest financing available to -- so the media it's a perfect storm go by -- and I guess the the economy is seeing haven't figured that I see that more could go through -- 2012.
Organist you know.
There are continue to grow.
What you've been in this business since the -- so your your kind of a pretty serious guy who doesn't doesn't mess around with the real facts -- you know 42 different types of brands is selling -- your biggest about 21% your businesses as you mentioned BMW but let me get back to the UK for a minute.
40% -- your business is coming out of the UK and that's you know.
We just heard from the ratings agencies that they're -- the UK on sort of a credit negative watch and are you concerned about that even though you are seeing those high end sales what are you doing this sort of an offensive move.
To make sure that the big car sell in England.
Well I think it's barely beat butchery beat -- business that I think -- over the years where the search for heart ministering carrier consumer.
You want -- repeat business and in the businesses that we have that are successful.
We have a tremendous a moderate -- referral endless.
With the UK and -- in the premium side and with the growth of these grand remember.
BMW and Mercedes and -- they've gone up and down -- they've just got a premium luxury brands are down now competing.
You know the lower levels you're getting the benefit of really market share from them and I see that being.
Part of the drive it will have during the next year but again there are parts and service business from a percentage it gives us the highest margin and again that's an important part in our profitability.
What your stock hit an all time high today it's up 22% year over year that you know looking at all of your revenues by brand there are the big portions of the Japanese business.
But that you said that you started to see some of the inventory come back after that terrible earthquake and tsunami.
But -- get your Toyota and your Honda business.
Each about 12%.
I think of your industry.
For at least for your business rather what do you think is going to be the hottest selling car in 2012 is it some of the Toyota's comeback.
Well and that never what I think it's important to make a point here is that that inventories.
-- -- if you looked at the run rate that we would have had.
You know back -- three years ago before all of the trouble we would be running what probably about 5000 Toyota's had 5000 -- You know an immature were running at about 60% of that to like the event.
Ramping up which will be key but I see the new cadre.
It is a great car wrapped certainly from the standpoint of Toyota you've got the new civic.
The -- from Land Rover which is a premium car but overall I'm representing 41 branch -- I have to be kind of our -- the other.
You -- find out you know that you picture not partial to the auto industry yet a lot of Americans as some of them more conservative perhaps.
Have been very much against the bail out of the US auto industry.
As we see this industry come back how did you feel about it then and do you think that was the right move for the US government to take over and say.
We got to help GM we've got to help Chrysler.
Well let me say this I actually feel it was the right move -- -- -- -- in Michigan I live in Detroit been.
And -- -- seen you know what's taken place you know the industry auto industry.
Every for every job that they're one of the Big -- there's -- other jobs there around the country and around the world that there.
You know rely on on the Big Three and I think today.
You know the profitability with the ability to pay the majority this money back is key.
I know there's lots of discussions -- -- the current Republican candidate they're campaigning about.
This issue but -- I think it was the right thing.
To me today GM is much stronger -- their adding jobs there.
Very -- good thing -- they're bringing business back into the country the sourcing it was going out which people don't realize.
Is coming back again for the US where they're not going outside to built on this -- on -- cars which I think is gonna add.
You know to the employment picture which -- all working -- so hard so to me I think we're the right move that would do it again it had to be done quickly you can't wait and -- just saying over several weeks so I take my head off her.
But the -- part of it but again I think they have the pay it back and I think Marchionne had Chrysler -- that Dan Akerson knows that and to media.
-- the the finance source.
Which obviously is key to Chrysler and GM today here at this critical also show to me there's still a bill to pay but there overall I think -- -- -- right thing.
Roger come on the show sometime again we'd love to have you thank you for being here you and I go way back to what -- worked at the beast interestingly you know sit on the GE board so I please come join us aren't book my pleasure thank you need that brought.
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