January 2008

$13 Billion Revenue

$13 Billion Revenue

Our Business Strategy

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United States Retail

United States Retail

What is Penske Automotive?

People

Process

Initiative

People

Process

Initiative

World Class

Facilities

World Class

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Geogr

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Brand

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Customer &

Employee

Satisfaction

Customer &

Employee

Satisfaction

Create Shareholder ValueCreate Shareholder Value

• 2nd Largest Auto Retailer in the U.S.

• #205 on Fortune 500

• 315 Dealerships:

• U.S. – 170; 65 Locations

• International – 145; 86 Locations

• Operate in 18 States and 4 Countries

• 40 Vehicle Brands

• 26 Collision Repair Centers

• 16,000 Employees

Overview

Retail Unit Volume(In Thousands)

2001 2002 2003 2004 2005 2006 2007e

Used New Total

3939

9797

136136

5151

117117

168168

6969

149149

218218

6262

135135

197197

Increasing Units in Operation

+14% CAGR+14% CAGR

7575

167167

242242

105105

195195

300300

8989

183183

272272

YTD Worldwide Revenue Mix

5%5%

66%66%

29%29%

Volume ForeignHigh Line Domestic

(9M ’07)

U.S. Revenue Mix

7%7%

49%49%

44%44%

Volume Foreign

High Line

Domestic

United States155 Franchises

Puerto Rico15 Franchises

Intl. Revenue Mix

4%4%94%94%

2%2%

U.K.135 Franchises

Germany10 Franchises4 Joint Ventures

Mexico3 Franchises1 Joint Venture

Volume Foreign

High Line

Domestic

Highly Productive Dealerships(New Unit Sales Per Dealership)

• Toyota 788 1,872 3,033

• Honda 627 1,346 2,492

• Lexus 531 1,489 1,791

• BMW 145 869 1,656

• Nissan 487 880 1,507

• Mercedes-Benz 146 742 1,052

• General Motors 242 275 973

• Ford 331 343 865

Industry

1991 2007 PAG*

* 2007Same-Store

Service & Parts Drives Gross Profit

S&P 11%S&P 11%

F&I 2%F&I 2%

Used 24%Used 24%

New 55%New 55%

RevenueMix

S&P 41%S&P 41%

F&I 15%F&I 15%

Used 13%Used 13%

New 31%New 31%

Gross ProfitContribution

W&F 8%W&F 8%

(9M ‘07)

INDUSTRY CHALLENGES

Industry Challenges

• Overall Economic Landscape

• Credit Issues

• Housing market

• Fuel Prices

• Changing CAFE Standards

• Balance OEM mandated Facility Requirement Costs

• Getting products to market on a timely basis

Vehicle Distribution

• It is as fair as an unfair system can be

• Has evolved from highly subjective to highly objective process

• Get the right car in the right quantity, in the right place at the right time

• OEMs today bear a remarkable similarity in their distribution process

• Still too much complexity and wasted time and effort

• UK Distribution

Positives

• Internet and web based OEM systems allow management of this asset 24/7

• Math based allocation systems create a more level playing field

• Sophisticated market diagnostics add additional science to planning and managing vehicle inventories

• Today’s dealers typically have adequate supply of vehicles

What Can Be Improved

• Planning horizons far too long at retail

• Decision criteria still based on historical data and behavior

• Retail inventories are the result of product planning/production decisions

• Dealers must understand the system

smart USA

• Appointed Exclusive Distributor for the smart fortwo in the United

States, including Hawaii; Alaska; and Puerto Rico

• Three Different Versions

• Pure – $11,590

• Passion – $13,590

• Cabriolet – $16,590

• 3.9 Million Website Visits

• Over 30,000 Reservations

• 100,000 smart Insiders

• smart1 Customer Care Center

smart Distribution

• True build to order system

• Collected $99 fully refundable reservations from 40,000 potential customers

• Each customer selected a model and color preference

• Reconfirmed reservations by providing each customer access to a configurator where they could build the car they wanted

• Kept option and color choices to a minimum

• Interior colors had four options

• Option packages limited

• Used configuration information to build car exactly to customer specification