Income From Continuing Operations of $19.8 Million, or $0.22 Per Share

Total Debt Reduced by $368 Million Since Year-End

Same-Store Retail Sales Revenues Increase 8.1% vs. First Quarter 2009

Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported second quarter income from continuing operations attributable to PAG of $19.8 million, or $0.22 per share attributable to common shareowners, which compares to $39.0 million, or $0.41 per share, in the second quarter last year. Total revenue in the second quarter was $2.3 billion compared to $3.3 billion in the same period last year.

Total retail sales revenues decreased 28.1% versus the comparable prior year period, driven principally by continuing broad-based weakness in the new vehicle market in the U.S. and the U.K. Same-store total retail revenues declined 31.3%. Excluding changes relating to exchange rates, total retail revenues on a same-store basis declined 24.9%. Despite the challenging operating environment, same-store service and parts revenues declined only 4.4% excluding changes relating to exchange rates.

During the second quarter, the Company further reduced its inventories and debt. As of June 30, 2009, inventories were $1.3 billion and total debt, including floor plan debt, was $2.2 billion, which represent reductions of $324 million and $368 million, respectively, since December 31, 2008. As of June 30, 2009, the Company had availability of $361 million under its revolving credit agreements.

“The performance of our business in the second quarter improved over the first quarter,” said Penske Automotive Group Chairman Roger Penske. “While market conditions are difficult, the cost reduction initiatives we implemented helped us remain profitable this year despite our decreased revenues. I am encouraged that our sales levels continued to improve sequentially. In fact, same-store retail revenues in the second quarter increased 8.1% compared to the first quarter of this year, including increases of 11.9% and 5.9%, respectively, in new and used retail sales revenues.”

Total revenues for the six months ended June 30, 2009, decreased 31.2% to $4.5 billion. Income from continuing operations attributable to PAG for the six months was $36.0 million, or $0.39 per share attributable to common shareowners, which compares to $70.8 million and $0.74 per share, respectively, in the comparable period in the prior year. The 2009 results include $6.5 million, or $0.07 per share, of after-tax gain relating to the repurchase in the first quarter of $69 million principal amount of the Company’s 3.5% Senior Subordinated Convertible Notes due 2026. Excluding this gain, adjusted income from continuing operations attributable to PAG amounted to $29.5 million, or $0.32 per share attributable to common shareowners.

Securities Repurchase Authority

The Company’s Board of Directors previously approved repurchases of up to $150 million of the Company’s outstanding common stock, debt and convertible debt. During the second quarter, the Company did not repurchase any securities and has $44 million remaining under the program.

smart USA

During the second quarter, smart USA wholesaled 3,659 units. Consistent with other smaller, fuel efficient vehicles, lower gasoline prices and the challenging new vehicle sales environment in the U.S. are impacting smart fortwo vehicle sales. In response to the challenging retail environment, smart USA has launched finance and marketing campaigns to drive retail activity, and has implemented initiatives which it expects will result in annualized cost savings of approximately $3.5 million. During the quarter, smart USA also approved new retail centers in Nashville, TN, Oxnard, CA and New Orleans, LA, expanding the smart retail network in the U.S. to 78 franchises. For the year, smart USA now expects to wholesale approximately 18,000 units.

Saturn Memorandum of Understanding

In June 2009, the Company announced that it had entered into a Memorandum of Understanding (the “MOU”) with General Motors regarding the potential acquisition of certain assets relating to the Saturn automotive brand. Pursuant to the MOU, we would obtain the rights to the Saturn brand, acquire certain assets including the Saturn parts inventory, and have the right to distribute vehicles and parts through the Saturn dealership network. General Motors would continue to provide Saturn Aura, Vue and Outlook vehicles, on a contract basis, for an interim period. Due diligence and negotiations related to this transaction continue, and consummation of a transaction is subject to the completion of additional due diligence, regulatory and other approvals.

Conference Call

Penske Automotive will host a conference call discussing financial results relating to the second quarter of 2009 on July 29, 2009, at 2:00 p.m. EDT. To listen to the conference call, participants must dial (800) 230-1092 [International, please dial (612) 234-9959]. The call will be simultaneously broadcast over the Internet through the Penske Automotive Group website at www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 310 retail automotive franchises, representing 40 different brands and 25 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 160 franchises in 17 states and Puerto Rico and 150 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is also the exclusive distributor of the smart fortwo through its wholly-owned subsidiary smart USA Distributor LLC. smart USA supports 78 smart retail centers in the United States. Penske Automotive is a member of the Fortune 200 and Russell 1000 and has approximately 14,000 employees. smart and fortwo are registered trademarks of Daimler AG.

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 and earnings potential, its ability to reduce its variable expenses, and the potential Saturn transaction noted above. Actual results may vary materially because of risks and uncertainties, including external factors such as consumer credit conditions, any potential restructuring of the U.S. automotive sector, macro-economic factors, interest rate fluctuations, changes in consumer spending and other factors over which management has no control and, with respect to the potential Saturn transaction, satisfaction of various conditions, such as required regulatory approvals, satisfactory completion of due diligence and other conditions, many of which are outside of our 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, 2008, and its other filings with the Securities and Exchange Commission (“SEC”). This press release speaks only as of its date, and Penske Automotive disclaims any duty to update the information herein.

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, which exclude certain items disclosed in the release. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure and the period-to-period comparability of the Company's results from operations.

Penske Automotive Group, Inc.
Bob O’Shaughnessy
Chief Financial Officer
248-648-2800
boshaughnessy@penskeautomotive.com
or
Anthony R. Pordon
Senior Vice President
248-648-2540
tpordon@penskeautomotive.com