EX-99.1

PENSKE AUTOMOTIVE REPORTS THIRD QUARTER RESULTS
____________________________________________________________

Income From Continuing Operations of $31.0 Million, or $0.34 Per Share
___________________________________________________________

BLOOMFIELD HILLS, MI, October 22, 2010 – Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported third quarter income from continuing operations attributable to common shareholders of $31.0 million, or $0.34 per share. This compares to income from continuing operations attributable to common shareholders of $27.7 million, or $0.30 per share, in the third quarter last year. Third quarter 2009 income from continuing operations attributable to common shareholders included net expenses of $3.4 million, or $0.04 per share, relating to unusual items as shown in the reconciliation included in the attached selected data tables.

Total revenue in the third quarter increased 6.5% to $2.8 billion. The revenue increase was driven by a 4.7% increase in total retail unit sales. Total used units retailed increased 16.5%, including an increase in the U.S. of 20.6%. Total new units retailed declined 2.6% due to the impact of the highly successful government incentive programs in the U.S., U.K. and Germany last year. Total same-store retail revenue increased 3.8% during the quarter, including growth of 4.2% and 3.1% in our U.S. and International operations, respectively. Excluding changes in exchange rates, total same-store retail revenue increased 6.0%.

Penske Automotive Group Chairman Roger Penske said, “The new vehicle retail environment was challenging during the third quarter, however, our performance at our premium/luxury franchises and our focus on increasing used vehicle sales drove our same-store retail revenue growth.” Penske continued, “We remain committed to growing our business. In 2010, we have acquired or been awarded new franchises that we expect will generate approximately $350 million of revenue on an annualized basis. We will continue to pursue opportunities to generate incremental revenue, while maintaining the financial discipline that has allowed us to pay down more than $210 million of long-term debt since the beginning of 2009.”

Total revenues for the nine months ended September 30, 2010 increased 12.5% to $7.9 billion. Income from continuing operations attributable to common shareholders in the nine months ended September 30, 2010 amounted to $80.9 million, or $0.88 per share. This compares to income from continuing operations attributable to common shareholders of $63.9 million, or $0.70 per share, in the nine months ended September 30, 2009. Income from continuing operations attributable to common shareholders for the nine months ended September 30, 2010 includes after-tax gains of $1.1 million, or $0.01 per share, relating to purchases of the Company’s 3.5% Senior Subordinated Convertible Notes due 2026. Income from continuing operations attributable to common shareholders for the nine months ended September 30, 2009 includes a net after-tax gain of $3.1 million, or $0.04 per share, relating to unusual items as shown in the reconciliation included in the attached selected data tables.

As previously announced, smart USA expects to incur approximately $25 million of development, engineering and tooling costs relating to a new five-door vehicle based upon Nissan’s global architecture to be distributed through the smart USA dealer network. smart USA currently expects that approximately $17 million of the costs incurred relating to the new vehicle will be expensed prior to the projected launch of the vehicle in the fourth quarter of 2011.

During the third quarter, smart USA wholesaled 1,165 units. In October, smart USA introduced finance and marketing campaigns designed to sell through the balance of the 2010 model year inventory, resulting in $0.9 million, or $0.01 per share, of after-tax expense in the third quarter. In addition, smart USA recognized $1.1 million, or $0.01 per share, of after-tax expense in the third quarter relating to the new vehicle.

The Company’s U.S. credit facility was extended in September by one year to September 2013. As of September 30, 2010, the Company had approximately $262 million and $60 million of revolving credit available under its U.S. and U.K. credit facilities, respectively. Penske Automotive CFO Bob O’Shaughnessy said, “Together with cash flow from operations and working capital, we believe our credit facilities will provide liquidity to fund our growth objectives and repurchase or redeem outstanding securities, including the $150.6 million principal amount of convertible notes expected to be redeemed in April 2011.”

The Company currently has authorization to repurchase up to $150 million of its outstanding common stock, debt or convertible debt. Securities may be acquired from time to time either through open market purchases, negotiated transactions or other means.

Penske Automotive will host a conference call discussing financial results relating to the third quarter of 2010 on October 22, 2010, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230-1093 [International, please dial (612) 332-0228]. The call will also be simultaneously broadcast over the Internet through the Penske Automotive Group website at www.penskeautomotive.com.

Penske Automotive Group, Inc. (www.penskeautomotive.com), headquartered in Bloomfield Hills, Michigan, operates 324 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 173 franchises in 17 states and Puerto Rico and 151 franchises located outside the United States, primarily in the United Kingdom.

Penske Automotive, through its wholly-owned subsidiary smart USA Distributor LLC (www.smartusa.com), is the exclusive distributor of the smart fortwo vehicle and related parts in the United States. smart USA supports more than 75 smart retail centers in the United States.

Penske Automotive is a member of the Fortune 500 and Russell 1000 and has approximately 14,500 employees. smart and fortwo are registered trademarks of Daimler AG.

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.’s expected ability to access amounts under its U.S. revolving credit facility. Actual results may vary materially because of risks and uncertainties, including external factors such as consumer credit conditions, adverse conditions affecting a particular manufacturer, macro-economic factors, interest rate fluctuations, changes in consumer spending, and other factors over which management has no control. Availability of revolving credit under the Company’s U.S. credit facility is predicated on continued covenant compliance and other factors. 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, 2009, 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.

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Statements of Income
(Amounts In Thousands, Except Per Share Data)
(Unaudited)


	Third Quarter
		2010			2009
Revenues:
New Vehicle		$	1,416,314		$	1,338,759
Used Vehicle			765,555			674,228
Finance and Insurance, Net			67,149			60,872
Service and Parts			335,250			335,571
Distribution			15,306			36,451
Fleet and Wholesale Vehicle			156,548			142,161

Total Revenues			2,756,122			2,588,042

Cost of Sales:
New Vehicle			1,304,008			1,225,907
Used Vehicle			708,593			614,867
Service and Parts			143,197			150,083
Distribution			14,481			30,294
Fleet and Wholesale Vehicle			155,990			144,184

Total Cost of Sales			2,326,269			2,165,335

Gross Profit			429,853			422,707
SG&A Expenses			355,920			347,550
Depreciation			12,403			14,019

Operating Income			61,530			61,138
Floor Plan Interest Expense			(9,048	)		(9,061	)
Other Interest Expense			(12,229	)		(13,490	)
Debt Discount Amortization			(1,647	)		(3,135	)
Equity in Earnings of Affiliates			7,370			7,536
Gain on Debt Repurchase			607			—

Income from Continuing Operations Before Income Taxes			46,583			42,988
Income Taxes			(15,279	)		(15,069	)

Income from Continuing Operations			31,304			27,919
Loss from Discontinued Operations, Net of Tax			(1,044	)		(257	)

Net Income			30,260			27,662
Income Attributable to Non-Controlling Interests			(283	)		(239	)

Net Income Attributable to Common Shareholders		$	29,977		$	27,423

Income from Continuing Operations Per Share		$	0.34		$	0.30

Income Per Share		$	0.33		$	0.30

Weighted Average Shares Outstanding			92,141			91,625

Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations		$	31,304		$	27,919
Income Attributable to Non-Controlling Interests			(283	)		(239	)

Income from Continuing Operations, Net of Tax			31,021			27,680
Loss from Discontinued Operations, Net of Tax			(1,044	)		(257	)

Net Income		$	29,977		$	27,423

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Statements of Income
(Amounts In Thousands, Except Per Share Data)
(Unaudited)


	Nine Months
		2010			2009
Revenues:
New Vehicle		$	4,004,450		$	3,400,082
Used Vehicle			2,211,892			1,949,514
Finance and Insurance, Net			190,141			164,009
Service and Parts			1,001,433			993,580
Distribution			43,175			169,716
Fleet and Wholesale Vehicle			494,398			388,136

Total Revenues			7,945,489			7,065,037

Cost of Sales:
New Vehicle			3,679,460			3,129,896
Used Vehicle			2,038,092			1,774,877
Service and Parts			430,472			448,950
Distribution			39,430			144,310
Fleet and Wholesale Vehicle			487,810			382,503

Total Cost of Sales			6,675,264			5,880,536

Gross Profit			1,270,225			1,184,501
SG&A Expenses			1,051,611			987,605
Depreciation			36,831			40,711

Operating Income			181,783			156,185
Floor Plan Interest Expense			(25,890	)		(27,492	)
Other Interest Expense			(37,491	)		(41,677	)
Debt Discount Amortization			(6,990	)		(9,908	)
Equity in Earnings of Affiliates			11,725			11,716
Gain on Debt Repurchase			1,634			10,429

Income from Continuing Operations Before Income Taxes			124,771			99,253
Income Taxes			(43,339	)		(35,143	)

Income from Continuing Operations			81,432			64,110
Loss from Discontinued Operations, Net of Tax			(1,156	)		(6,079	)

Net Income			80,276			58,031
Income Attributable to Non-Controlling Interests			(504	)		(247	)

Net Income Attributable to Common Shareholders		$	79,772		$	57,784

Income from Continuing Operations Per Share		$	0.88		$	0.70

Income Per Share		$	0.87		$	0.63

Weighted Average Shares Outstanding			92,171			91,563

Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations		$	81,432		$	64,110
Income Attributable to Non-Controlling Interests			(504	)		(247	)

Income from Continuing Operations, Net of Tax			80,928			63,863
Loss from Discontinued Operations, Net of Tax			(1,156	)		(6,079	)

Net Income		$	79,772		$	57,784

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Thousands)
(Unaudited)


	9/30/10		12/31/09
Assets
Cash and Cash Equivalents	$	6,027	$	13,999
Accounts Receivable, Net		367,888		321,226
Inventories		1,437,939		1,302,495
Other Current Assets		109,106		95,426
Assets Held for Sale		584		10,625

Total Current Assets		1,921,544		1,743,771
Property and Equipment, Net		731,813		726,808
Intangibles		1,017,133		1,011,803
Other Long-Term Assets		305,107		313,625

Total Assets	$	3,975,597	$	3,796,007

Liabilities and Equity
Floor Plan Notes Payable	$	907,315	$	769,657
Floor Plan Notes Payable – Non-Trade		474,805		423,316
Accounts Payable		210,999		189,989
Accrued Expenses		231,237		227,294
Current Portion Long-Term Debt		15,409		12,442
Liabilities Held for Sale		548		7,675

Total Current Liabilities		1,840,313		1,630,373
Long-Term Debt		837,976		933,966
Other Long-Term Liabilities		274,527		285,629

Total Liabilities		2,952,816		2,849,968
Equity		1,022,781		946,039

Total Liabilities and Equity	$	3,975,597	$	3,796,007


	Third Quarter						Nine Months
	2010			2009			2010			2009
Total Retail Units:
New Retail		40,504			41,574			116,319			105,485
Used Retail		29,975			25,723			85,971			78,813

Total Retail		70,479			67,297			202,290			184,298

smart Wholesale Units		1,165			3,401			4,161			12,774

Same-Store Retail Units:
New Same-Store Retail		38,907			41,544			112,210			105,116
Used Same-Store Retail		28,985			25,682			83,324			78,380

Total Same-Store Retail		67,892			67,226			195,534			183,496

Same-Store Retail Revenue:
New Vehicles	$	1,362,433		$	1,336,849		$	3,846,861		$	3,376,289
Used Vehicles		744,025			672,957			2,128,821			1,924,278
Finance and Insurance, Net		65,521			60,811			184,712			163,012
Service and Parts		324,227			334,018			972,210			984,657

Total Same-Store Retail	$	2,496,206		$	2,404,635		$	7,132,604		$	6,448,236

Same-Store Retail Revenue Growth:
New Vehicles		1.9	%		(14.9	%)		13.9	%		(32.9	%)
Used Vehicles		10.6	%		(8.6	%)		10.6	%		(20.1	%)
Finance and Insurance, Net		7.7	%		(11.8	%)		13.3	%		(26.8	%)
Service and Parts		(2.9	%)		(7.8	%)		(1.3	%)		(10.6	%)
Revenue Mix:
New Vehicles		51.4	%		51.7	%		50.4	%		48.1	%
Used Vehicles		27.8	%		26.1	%		27.8	%		27.6	%
Finance and Insurance, Net		2.4	%		2.4	%		2.4	%		2.3	%
Service and Parts		12.2	%		13.0	%		12.6	%		14.1	%
Distribution		0.5	%		1.3	%		0.6	%		2.4	%
Fleet and Wholesale		5.7	%		5.5	%		6.2	%		5.5	%
Average Retail Selling Price:
New Vehicles	$	34,967		$	32,202		$	34,426		$	32,233
Used Vehicles		25,540			26,211			25,728			24,736
Gross Margin		15.6	%		16.3	%		16.0	%		16.8	%
Retail Gross Margin – by Product:
New Vehicles		7.9	%		8.4	%		8.1	%		7.9	%
Used Vehicles		7.4	%		8.8	%		7.9	%		9.0	%
Service and Parts		57.3	%		55.3	%		57.0	%		54.8	%


	Third Quarter						Nine Months
	2010			2009			2010			2009
Gross Profit per Retail Transaction:
New Vehicles	$	2,773		$	2,714		$	2,794		$	2,561
Used Vehicles		1,900			2,308			2,022			2,216
Finance and Insurance		953			905			940			890
Brand Mix:
BMW / Mini		22	%		21	%		21	%		21	%
Toyota / Lexus		18	%		20	%		18	%		19	%
Honda / Acura		14	%		14	%		14	%		15	%
Audi		11	%		10	%		11	%		10	%
Mercedes Benz / smart		10	%		10	%		10	%		10	%
Land Rover		4	%		4	%		5	%		4	%
Porsche		4	%		4	%		4	%		4	%
Ferrari / Maserati		3	%		3	%		3	%		3	%
Other		14	%		14	%		14	%		14	%

		100	%		100	%		100	%		100	%
Premium		66	%		64	%		65	%		64	%
Foreign		30	%		32	%		31	%		32	%
Domestic Big 3		4	%		4	%		4	%		4	%

		100	%		100	%		100	%		100	%
Revenue Mix:
U.S.		63	%		63	%		63	%		63	%
International		37	%		37	%		37	%		37	%

		100	%		100	%		100	%		100	%
Rent Expense	$	42,177		$	40,906		$	124,863		$	121,390

Reconciliation of reported income from continuing operations attributable to PAG and related earnings per share to adjusted income from continuing operations attributable to PAG and related earnings per share for 2009:


	Third Quarter 2009				Nine Months 2009
	Earnings		EPS		Earnings			EPS
Income from continuing operations attributable to PAG	$	27,680	$	0.30	$	63,863		$	0.70
Gain on debt repurchase		—		—		(6,518	)		(0.07	)
Costs relating to Saturn transaction		1,926		0.02		1,926			0.02
Franchise closure/relocation costs		778		0.01		778			0.01
Hedge de-designation costs		686		0.01		686			0.01

Adjusted income from continuing operations attributable to PAG	$	31,070	$	0.34	$	60,735		$	0.66


Contacts:		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