Penske Automotive Group (PAG) risk factors, FY2024 10-K

Penske Automotive Group's FY2024 10-K, filed Feb 21, 2025, lists 10 risk factors in 5 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
105 groups
Section length
9k wordsItem 1A

Penske Automotive Group's biggest risks in the FY2024 10-K

  • Risks span PAG’s automotive retail and PTS leasing and rental operations, with regulation and technology dependence prominent.
  • Vehicle-emissions mandates, climate disclosures, FCA commission claims, and FTC sales rules could raise costs or change processes.
  • PTS faces concentrated customers and labor needs; PAG also depends on sublessees and integrated third-party systems.

The risks most specific to Penske Automotive Group

  • Operational Risks

    Customers. PTS has a more concentrated customer base than we do and is subject to changes in the financial health of its customers, changes in their asset utilization rates, and increased competition for those customers

    PTS depends on concentrated customers, qualified drivers, and technicians, while labor-law changes or work stoppages could increase costs.

  • Operational Risks

    Regulatory Requirements and Vehicle Mandates

    Greenhouse-gas controls could raise transportation-industry costs, affect PTS and PTG customers, and reduce vehicle demand.

  • Operational Risks

    Centralized Information Systems

    A failure or communications disruption in PTS’s centralized lease, rental, fleet, reservation, and accounting systems could interrupt operations.

  • Strategic Risks

    Changes to the retail delivery model, including increased digital retailer competition, efforts to sell vehicles directly outside the franchise system, and transition to an agency model of distribution could adversely affect our business, results of operations, financial condition, and cash flows

    Online used-vehicle retailers, direct sales outside franchise systems, and agency distribution could weaken PAG’s traditional retail model.

  • Financial Risks

    Performance of sublessees

    PAG’s sublease income, totaling approximately $16.2 million in 2024, depends on the performance of third-party sublessees.

  • Legal and Compliance Risks

    Vehicle Emissions and Other Environmental Regulations

    Vehicle-emissions and environmental rules may restrict new vehicles and increase compliance or operating costs in PAG’s markets.

  • Legal and Compliance Risks

    While the focus of the FCA’s potential redress to customers, and the Judgment above, has been on the lenders and not dealers, we may experience changes to our processes and/or claims for repayment of historical commissions we have received from customers, which amounts could materially and adversely affect us

    FCA-related customer redress could change PAG’s processes or require repayment of historical commissions; privacy laws also govern customer and employee data.

  • Legal and Compliance Risks

    Changes in law

    New laws, including the FTC’s Combating Auto Retail Scams Rule, could change how PAG advertises and sells vehicles.

  • Legal and Compliance Risks

    Amendment (Financial Market Infrastructure and Other Measures) Act 2024

    California climate laws and European Sustainability Reporting Standards require emissions, climate-risk, and other sustainability disclosures.

  • General Risks

    We rely on third parties for the majority of our information systems and the availability and efficient operation of such systems is critical to the operation of our business

    PAG relies on third parties for integrated systems supporting manufacturer interfaces, customer management, sales, data storage, and financial reporting.

All 10 risk factors

Headings as the filing states them, in filing order.

Operational Risks

  1. 01Customers. PTS has a more concentrated customer base than we do and is subject to changes in the financial health of its customers, changes in their asset utilization rates, and increased competition for those customers
  2. 02Regulatory Requirements and Vehicle Mandates
  3. 03Centralized Information Systems

Strategic Risks

  1. 04Changes to the retail delivery model, including increased digital retailer competition, efforts to sell vehicles directly outside the franchise system, and transition to an agency model of distribution could adversely affect our business, results of operations, financial condition, and cash flows

Financial Risks

  1. 05Performance of sublessees

Legal and Compliance Risks

  1. 06Vehicle Emissions and Other Environmental Regulations
  2. 07While the focus of the FCA’s potential redress to customers, and the Judgment above, has been on the lenders and not dealers, we may experience changes to our processes and/or claims for repayment of historical commissions we have received from customers, which amounts could materially and adversely affect us
  3. 08Changes in law
  4. 09Amendment (Financial Market Infrastructure and Other Measures) Act 2024

General Risks

  1. 10We rely on third parties for the majority of our information systems and the availability and efficient operation of such systems is critical to the operation of our business

Other Penske Automotive Group 10-Ks

  • FY2025 10-K risk factors
    18 risks1 new6 reworded

    Chinese manufacturers reached 9.7% of U.K. registrations, creating exposure where PAG lacks full representation.

    Filed Feb 27, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.