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    Ronald Jewsikow • Guggenheim Securities, LLC

    Ronald Jewsikow's questions to Penske Automotive Group Inc (PAG) leadership

    Ronald Jewsikow's questions to Penske Automotive Group Inc (PAG) leadership • Q2 2025

    Question

    Ronald Jewsikow of Guggenheim Securities, LLC inquired about the gross profit per unit (GPU) trajectory during Q2 and into July, and the potential impact of the sunsetting of EV tax credits on its luxury-heavy vehicle mix.

    Answer

    COO of North American Operations Richard Shearing explained that GPUs were stable in Q2, supported by tariff uncertainty, but he anticipates some future compression. He noted a focus on selling BEV inventory before the tax credit expires, aided by OEM incentives. Chairman & CEO Roger Penske added that a rebalancing of production away from BEVs could increase the supply of in-demand ICE models, which he views as a positive for the business.

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    Ronald Jewsikow's questions to Penske Automotive Group Inc (PAG) leadership • Q1 2025

    Question

    Ronald Jewsikow asked about the potential impact of tariffs on parts inflation, the outlook for new vehicle GPUs, and the regional performance differences between the U.S. and Europe.

    Answer

    Chair and CEO Roger Penske speculated that tariffs on non-genuine parts could make PAG's genuine parts more competitive. He also noted new vehicle GPUs have been hovering around $5,000, supported by a better ICE/BEV mix. EVP Rich Shearing added that PAG's premium brand mix led to the lowest new GPU decline among peers. Both executives confirmed U.S. and U.K. new gross profit trends were similar.

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    Ronald Jewsikow's questions to Group 1 Automotive Inc (GPI) leadership

    Ronald Jewsikow's questions to Group 1 Automotive Inc (GPI) leadership • Q2 2025

    Question

    Ronald Jewsikow of Guggenheim Securities asked for clarification on UK SG&A drivers beyond mandated cost increases and questioned if customer-pay service demand could offset a potential slowdown in warranty work.

    Answer

    CFO Daniel McHenry confirmed there were no other unusual drivers for the UK SG&A increase, attributing it to normal quarterly fluctuations and reiterating an annualized target near 80% of gross profit. CEO Daryl Kenningham stated that while customer-pay (CP) growth couldn't fully offset a 31% warranty surge, there is still significant room to grow the CP business, as service capacity remains the key to overall aftersales growth.

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    Ronald Jewsikow's questions to Group 1 Automotive Inc (GPI) leadership • Q1 2025

    Question

    Ronald Jewsikow asked for quantification of the SG&A creep in the U.S. during January and February and whether it was normalized by March. He also inquired about OEM plans for volume, pricing, and incentives given potential tariff changes.

    Answer

    CFO Daniel McHenry acknowledged that SG&A leverage was weaker in January and February due to some creep in variable compensation, which the company began to realign in March and will continue to address in Q2. CEO Daryl Kenningham stated he expects OEMs to moderate incentives first before considering modest price increases, and he is closely watching the potential impact on parts pricing.

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    Ronald Jewsikow's questions to Group 1 Automotive Inc (GPI) leadership • Q4 2024

    Question

    Ronald Jewsikow sought to understand the drivers of the 7% increase in parts and service revenue per repair order, asking if it was due to warranty work or pricing power. He also asked if potential Mexican import tariffs could support pricing for Group 1's U.S.-built vehicle mix.

    Answer

    CEO Daryl Kenningham attributed the higher revenue per repair order to increased customer counts and a rising average age of vehicles needing more work, rather than significant price increases. He also acknowledged there is truth to the idea that tariffs on imports could be supportive for the pricing of vehicles built domestically.

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    Ronald Jewsikow's questions to Rivian Automotive Inc (RIVN) leadership

    Ronald Jewsikow's questions to Rivian Automotive Inc (RIVN) leadership • Q1 2025

    Question

    Ronald Jewsikow asked for more detail on the delivery guidance reduction, specifically whether it was driven more by commercial vans or consumer vehicles and if any supply risk was factored in. He also requested an update on the R2 retooling, production downtime, and whether the necessary capital equipment has been sourced.

    Answer

    CEO Robert Scaringe attributed the guidance change to broad consumer price sensitivity and uncertainty, affecting both consumer and commercial demand. He added that the supply chain team is actively working to mitigate any potential interruptions from the tariff environment. COO Javier Varela confirmed that the building expansion for R2 is complete, all equipment is sourced, and the planned plant downtime in the second half of the year to integrate R2 production is on track.

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    Ronald Jewsikow's questions to Lithia Motors Inc (LAD) leadership

    Ronald Jewsikow's questions to Lithia Motors Inc (LAD) leadership • Q1 2025

    Question

    Ronald Jewsikow followed up on SG&A, asking for details on the drivers behind the planned monthly savings and what the 'low-hanging fruit' is. He also asked what drove the significant sequential step-up in DFC loan originations during the quarter.

    Answer

    President and CEO Bryan DeBoer identified the primary drivers for SG&A reduction as a long-term 10-15% decrease in personnel costs through productivity gains and leveraging corporate scale and vendor contracts. Regarding DFC, he explained that improving Net Interest Margins (NIMs) provided the flexibility to scale loan penetration, which reached 13.7% in the quarter, without compromising credit quality.

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