Penske To Go Private?, Busting Dealer Myths

Episode #1404: The nation's No. 2 auto retailer looks to go private in a $3.8 billion deal, a viral TikTok perpetuates the stigma that dealers are the problem and Ford teams up with Carhartt, Google, and BlackRock to invest in the next generation of skilled tradespeople.

Show Notes with links:

• The nation's second-largest automotive retailer may soon leave the public markets. Penske Corp. and Japanese partner Mitsui have launched a $3.8 billion bid to take Penske Automotive Group private, a move that could give the dealership giant more flexibility to invest and plan for the long term.

  • Penske Corp. and Mitsui are offering $210 per share for the 28% of Penske Automotive Group they don't already own.

  • Shares jumped nearly 10% after the announcement, though some investors may push for a higher offer.

  • Management says operating as a private company would provide greater flexibility to invest, innovate, and make long-term decisions.

  • Analysts say the move could also simplify future leadership succession while reducing pressure from quarterly earnings expectations.

  • "It's easier to do all these things in the context of a private company." — Stephens analyst Jeff Lick

• Our good friend Don Hall of VADA sent us this viral TikTok that’s making the rounds, so we’re going to watch and react.