The Penske Automotive Group’s franchised dealerships reported $685.20 million in service and parts revenue for the third quarter of 2023 — an increase of 12.4% compared to a year ago, with an increase of roughly 7.0% in the United States and an increase of 23.4% internationally.
On a same-store basis, service and parts revenue from franchised dealerships grew 9.5% in the third quarter (up 7.0% excluding foreign currency fluctuations), with customer-pay revenue up 9.7%, warranty revenue up 6.9%, and vehicle preparation and body shop revenue up 14.7%.
Franchised dealership gross profit from service and parts rose 12.5% to $404.40 million in the quarter. On a same-store basis, gross profit grew 10.3% year over year (up 8.0% excluding foreign currency fluctuations), with customer-pay gross profit up 11.1%, vehicle preparation and body shop gross profit up 11.4%, and warranty gross profit up 6.6%.
Franchised dealership gross margin from service and parts increased from 58.9% to 59.0% on a year-over-year basis, while same-store gross margin increased from 59.1% to 59.5%.
As of Sept 30, 2023, Bloomfield Hills, MI-based Penske operated 336 retail automotive franchised dealerships, of which 147 were located in the United States and 189 were located overseas, primarily in the United Kingdom.