Your Source for Up-To-Date News and Research on the Collision Repair Industry

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

This article originally appeared in the May 2003 Issue of INSIGHT

United Auto Group Is Raising the Bar

This month we are adding United Auto to our stock chart, whose principal stockholder is Penske Corporation, with 26 percent of the United Auto Group (UAG) common stock and Roger Penske as chairman and CEO.

While at the April meeting of CIC in Phoenix, I had an opportunity to visit one of United Auto Group's key facilities, and that was North Scottsdale Lincoln Mercury, Volvo, Cooper, BMW, Audi, Volkswagen, Porsche, and Jaguar all on one campus-like location that included both the Penske racing museum and a restaurant.

Separate from this mega-dealership was the body shop owned by Penske and set up to handle several other dealerships in the area also owned by the Penske organization, e.g. Rolls Royce and Lamborghini.

This body shop, Scottsdale Paint and Body, managed by Doug Strobot, was immense and, in fact, may well be the biggest in North America at 135,000 square feet. The pictures accompanying this page provide both a measure of the size and a glimpse of the ultra-clean, well-lighted, and well-equipped shop area, where, at the time of my visit 125 vehicles were under repair.

This facility is certified by Jaguar and Audi for aluminum structural repair and uses multiple Celette Bench systems for unibody repair work.

From what I understand, this shop is not unique in its appearance and capabilities within the UAG and Penske Automotive Group. They reportedly all meet the same high standards.

UAG stock price has risen only modestly this year after the major investment by Penske who incidentally also owns Longo Toyota in California, the largest Toyota dealership and body repair facility in the U.S.

For all of the Collision Repair Industry related stocks that we follow, this was a good month. Every insurer was up significantly, and one key stock closely related to collision repair, Keystone Automotive, was up over ten percent after a favorable earnings report.

Our INSIGHT Fund Index is up almost two percent for the year, being pushed upward by Progressive Insurance, up 30 percent for the year; Keystone, up almost 20 percent; and 3M, up almost six percent.

Looking at the remainder of the year, I believe that now that "the battle is over and the war is won" the economy will recover. Ford Motor reported stronger than expected earnings YTD, and other companies are also showing improved earnings.

-Charles Baker-

Feedback

Have a comment about this article? Send Email to Charles Baker, INSIGHT's Publisher

SUBSCRIBERS-ONLY Today's News INSIGHT This Month INSIGHT Archives Survey Center Letter to the Editor

Business Tools Subscription Information CSI Reporting Financial Analysis IRS Audit Guide