8:18 am, February 12, 2021
Sytner owner Penske Automotive has revealed it will be rolling out the used car CarShop brand worldwide.
The group said it will add 20 more used car ‘super centres’ to its portfolio by the end of 2023, including more in the UK and US.
Currently the group operates 17 standalone used car sites in the US and UK, 11 of them on this side of the pond.
Sytner bought CarShop in 2017 and it has helped the firm become one the second most profitable groups in the UK.
It finished second in the Car Dealer Top 100 list of most profitable car dealers with revenues of £5.92bn and profit of £152m in 2019.
In the United States, Penske operates its used car operation under the CarSense name, but in an update to investors this week it said these will be rebranded CarShop in a ‘global rebranding effort’.
Penske is aiming to sell more than 150,000 used cars by the end of 2023 and increase revenue to $3bn in a hope to push profit up to $100m a year from the division.
The announcement follows the latest CarShop store opening in Nottingham at the end of last year which Penske says will sell around 6,000 cars a year.
Carshop CEO Nigel Hurley said: ‘It’s an exciting time to be part of the CarShop (Global) team for sure! We have an ambitious growth plan, the funds to execute it and the team to deliver it.
‘If we were a race car pulling into the paddocks, we might not have the loudest engine or indeed the most vivid design of car, but we do have an outstanding pit crew and a super engine.’
Car Dealer visited the new site and was given a tour by Hurley at the end of last year.
He told us, in a special video interview you can watch above, that the group was aiming to sell 70,000 cars in 2021 with the hope of doubling that figure in the next ‘three to four years’.
The global rebranding announcement came as Penske Automotive Group announced earnings for its fourth quarter.
Penske said its numbers for the quarter were impacted by the UK lockdown in November which saw showrooms close and operate via click and collect only.
But that was a relatively minor blip for the second largest new car dealership group in the States as it said revenue fell by just 1.2 per cent to $5.81bn and earnings nearly doubled to $201m.
The group turned over $20.4bn for the full year and made $545.3m profit.
Penske CEO Roger Penske said: ‘I am very pleased to report 97 per cent earnings growth for the fourth quarter.
‘Our results were driven by same-store retail automotive margin expansion, growth in our commercial truck dealership profitability, and continued strong performance from Penske Transportation Solutions.’
