With the release yesterday of Penske’s third quarter earnings, we are able to update the two graphs below for the seven publicly-traded dealership groups. The trends continue.
With respect to unit volumes, it is very good trend indeed. Seventeen consecutive quarterly increases on a same-store basis – with double-digit gains in each of the past two quarters. And, notably, these dealership groups (as well as large private ones) are also growing through acquisitions. The big are indeed getting bigger.
Although gross margins in the third quarter remained very narrow, they did increase fractionally from their year level on a sales-weighted basis. Some of the implications of these narrow margins were discussed our post on May 9, 2013.