FOR IMMEDIATE RELEASE

PENSKE AUTOMOTIVE REPORTS RECORD FIRST QUARTER RESULTS

Acquisitions and Strong U.K. Performance Produce Record Results

Earnings Per Share From Continuing Operations Increases 7.8% to $0.97

First Quarter 2017 Highlights

Revenue Increases 5.3% to $5.1 Billion; Excluding Foreign Exchange +11.3%

Same-Store Retail Revenue Decreases 2.2%; Excluding Foreign Exchange +3.7%

Income from Continuing Operations Attributable to Common Shareholders Increases 4.9% to $83.2 Million; Excluding Foreign Exchange +14.4% to $90.7 Million

Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 7.8% to $0.97; Excluding Foreign Exchange +17.8% to $1.06

BLOOMFIELD HILLS, MI, April 26, 2017 – Penske Automotive Group, Inc. (NYSE:PAG), an international transportation services company, today announced record first quarter results, including record revenue, income from continuing operations and earnings per share. For the three months ended March 31, 2017, income from continuing operations attributable to common shareholders increased 4.9% to $83.2 million, and related earnings per share increased 7.8% to $0.97, when compared to the same period last year. Foreign exchange negatively impacted income from continuing operations attributable to common shareholders by $7.5 million, and earnings per share attributable to common shareholders by $0.09. Excluding the foreign exchange impact, income from continuing operations attributable to common shareholders would have increased 14.4% to $90.7 million and earnings per share would have increased 17.8% to $1.06.

For the three months ended March 31, 2017, total automotive units retailed increased 11.6%, driven by strength in the company’s U.K. operations and acquisitions. Total same-store units retailed declined 0.4%. Total revenue increased 5.3% to $5.1 billion, and same-store retail revenue declined 2.2%. Foreign exchange rates negatively impacted revenues by approximately $287.6 million. Excluding the foreign exchange impact, total revenue would have increased 11.3% to $5.4 billion and same-store retail revenue would have increased 3.7%.

Commenting on the company’s results, Penske Automotive Group Chairman Roger S. Penske said, “Our diversified transportation services business delivered another outstanding quarter of record results despite foreign currency headwinds. I am pleased to see increases in average gross profit per transaction for new vehicles, used vehicles and finance and insurance when excluding the impact from foreign exchange, coupled with another strong quarter of record results by our U.K. business. As we look to the future our recent acquisitions combined with the continued performance of our existing business provide a solid foundation for growth and profitability.”

Automotive Retail Highlights - Note: f/x = foreign exchange

Retail Unit Sales +11.6% to 124,472

New unit retail sales +5.8%
Used unit retail sales +18.1%

Same-Store Retail Unit Sales -0.4% to 110,577

New unit retail sales +0.6%
Used unit retail sales -1.5%

Same-Store Retail Revenue -2.2%; excluding f/x +3.7%

New -2.9%; Used -2.7%; Finance & Insurance +4.9%; Service and Parts +0.9%

Excluding f/x: New +2.8%; Used +4.1%; Finance & Insurance +11.2%; Service and Parts +4.9%

Average Gross Profit Per Unit

New $2,848, -$140/unit; Gross Margin 7.7%, flat

Excluding f/x $3,025, +$37/unit

Used $1,512, -$86/unit; Gross Margin 6.1%, +10 basis points

Excluding f/x $1,606, +$8/unit

Finance & Insurance $1,104, +$42/unit

Excluding f/x $1,174, +$112/unit

Automotive retail results include the company’s recently acquired used vehicle superstores, which are located in the U.S. and in the U.K. During the first quarter of 2017, these used vehicle dealerships retailed 8,200 units, generating $143.1 million in revenue and $24.6 million in gross profit. The average transaction price was $14,372, generating a gross profit per unit of $1,382. Finance and insurance gross profit per unit was $1,147.

Retail Commercial Truck Operations

The company operates twenty locations in the U.S. and Canada under the “Premier Truck Group” brand name, offering primarily the Freightliner and Western Star brands. For the three months ended March 31, 2017, Premier Truck Group retailed 1,507 units, generated $211.7 million of revenue, and $36.4 million of gross profit, principally through the retail sale of new/used medium-and heavy-duty trucks and service/parts sales. For the three months ended March 31, 2017, gross profit per used truck retailed improved to $2,589 from a loss of $1,471 per unit in the same period last year, as used truck prices stabilized. Service and parts gross profit represented approximately 79% of Premier Truck Group’s gross profit for the three months ended March 31, 2017.

Penske Truck Leasing

Penske Truck Leasing Co., L.P. (“PTL”) is a leading provider of full-service truck leasing, truck rental, contract maintenance and logistics services. For the three months ended March 31, 2017, we recorded $11.9 million as part of equity in earnings of affiliates compared to $3.5 million for the three months ended March 31, 2016. The company acquired an additional 14.4% ownership interest in PTL in July 2016, increasing our ownership to 23.4%. Accordingly, the company accounts for its ownership interest in PTL using the equity method of accounting.

Acquisitions

During the three months ended March 31, 2017, the company completed acquisitions representing approximately $900 million in estimated annualized revenue. These acquisitions include a Jaguar and Land Rover dealership in Paramus, New Jersey, U.S.-based CarSense and U.K.-based CarShop, both of which are stand-alone specialty retailers of used vehicles.

In April 2017, the company announced that it had acquired Schumacher European, LTD., an 88,000 square foot Mercedes-Benz and Sprinter dealership with 67 service bays located in Phoenix, Arizona. Schumacher European is expected to add approximately $250 million in estimated annualized revenue. The Schumacher dealership is located contiguous to the company’s Scottsdale 101 Auto Collection which includes 15 franchises, over 220 service bays and generates over $800 million in annual revenues.

Conference Call

Penske Automotive will host a conference call discussing financial results relating to the first quarter of 2017 on Wednesday, April 26, 2017, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 700-7860 — [International, please dial (612) 332-0720]. The call will also be simultaneously broadcast over the Internet through the Investor Relations section of the Penske Automotive Group website. Additionally, an investor presentation relating to the first quarter 2017 financial results has been posted to the company’s website. To access the presentation or to listen to the company’s webcast, please refer to www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, Canada, and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG employs more than 25,000 people worldwide and is a member of the Fortune 500 and Russell 2000. For additional information, visit the company’s website at www.penskeautomotive.com.

Non-GAAP Financial Measures

This release contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted income from continuing operations and related earnings per share, and earnings before interest, taxes, depreciation and amortization (“EBITDA”). The company has reconciled these measures to the most directly comparable GAAP measures in the release. The company believes that these widely accepted measures of operating profitability improve the transparency of the company’s disclosures and provide a meaningful presentation of the company’s results from its core business operations excluding the impact of items not related to the company’s ongoing core business operations, and improve the period-to-period comparability of the company’s results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results, and should only be considered in conjunction with the company’s financial information that is presented in accordance with GAAP.

Caution Concerning Forward Looking Statements

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.’s future sales potential. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: economic conditions generally, conditions in the credit markets and changes in interest rates and foreign currency exchange rates, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to natural disasters, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive’s business, markets, conditions and other uncertainties, which could affect Penske Automotive’s future performance. These risks and uncertainties are addressed in Penske Automotive’s Form 10-K for the year ended December 31, 2016, and its other filings with the Securities and Exchange Commission (“SEC”). This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.

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