EX-99.1

PENSKE AUTOMOTIVE REPORTS SECOND QUARTER RESULTS
____________________________________________________________

Income from Continuing Operations Per Share Increases 11% to
$0.42 Per Share
____________________________________________________________

BLOOMFIELD HILLS, MI, July 31, 2007 – Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported that second quarter income from continuing operations increased 8.1% to $39.3 million and related earnings per share increased 10.5% to $0.42. Second quarter net income increased 10.0% to $40.4 million and related earnings per share increased 10.3% to $0.43. Revenues in the second quarter increased 19.2% to $3.4 billion, including an 8.5% increase in same-store retail revenues. The increase in same-store retail revenues included:

“Our results continue to showcase the strength of our brand mix and the diversity of our business,” said Penske Automotive Chairman Roger Penske. “Our same-store retail revenue growth was strong in each line of our business. Same-store retail revenue growth was 2.5% in the U.S. and 22.8% in our international markets. In addition, our pre-owned vehicle business continued to be exceptionally strong, particularly at our international locations where total pre-owned retail vehicle revenues increased 56.6%, including same-store growth of 24.6%. The increased level of contribution from the pre-owned business, coupled with a challenging marketplace, contributed to an overall decrease in our gross margin during the second quarter.”

For the six months ended June 30, 2007, revenues increased 20.4% to $6.5 billion. Income from continuing operations and related earnings per share for the six months were $55.2 million and $0.58, respectively. Adjusted to exclude the $12.3 million ($0.13 per share) of after-tax costs resulting from the March 2007 redemption of the Company’s 9.625% Senior Subordinated Notes, income from continuing operations for the six months increased 8.6% to $67.5 million and related earnings per share increased 7.6% to $0.71. Net income and related earnings per share for the six months were $54.9 million and $0.58 respectively. Adjusted for the debt redemption charge, net income increased 10.9% to $67.2 and related earnings per share increased 10.9% to $0.71.

The Company currently projects earnings from continuing operations in the third quarter to be in the range of $0.40 to $0.44 per share. The Company continues to project earnings from continuing operations for the year in the range of $1.40 to $1.50 per share, excluding the $12.3 million ($0.13 per share) debt redemption charge. These estimates include costs associated with developing the distribution network for the smart^® product launch in the U.S. and are based on an estimated average of 94.6 million shares outstanding.

Penske Automotive will host a conference call discussing financial results relating to the second quarter of 2007 on Tuesday, July 31, 2007 at 1:00 p.m. EDT. To listen to the conference call, participants must dial (800) 553-0327 [International, please dial (612) 332-0932]. The call will be simultaneously broadcast over the Internet through the Penske Automotive website at www.penskeautomotive.com.

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 311 retail automotive franchises, representing 40 different brands, and 26 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 164 franchises in 19 states and Puerto Rico and 147 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is a member of the Fortune 500 and Russell 1000 and has approximately 16,000 employees.

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.’s future sales and earnings potential. Actual results may vary materially because of risks and uncertainties, including external factors such as interest rate fluctuations, changes in consumer spending and other factors over which management has no control. 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, 2006 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.

This release contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted income from continuing operations and related earnings per share, which exclude certain items disclosed in the release. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure and the period-to-period comparability of the Company’s results from operations.

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


	Second Quarter
	2007			2006
Revenues:
New Vehicle	$	1,831,369		$	1,583,639
Used Vehicle		829,057			631,982
Finance and Insurance, Net		75,698			65,680
Service and Parts		357,377			306,924
Fleet and Wholesale Vehicle		288,137			249,502

Total Revenues		3,381,638			2,837,727
Cost of Sales:
New Vehicle		1,678,521			1,444,861
Used Vehicle		763,636			577,581
Service and Parts		156,407			137,730
Fleet and Wholesale Vehicle		287,089			248,064

Total Cost of Sales		2,885,653			2,408,236

Gross Profit		495,985			429,491
SG&A Expenses		389,276			334,600
Depreciation and Amortization		13,337			10,805

Operating Income		93,372			84,086
Floor Plan Interest Expense		(19,546	)		(16,218	)
Other Interest Expense		(12,917	)		(11,436	)
Equity in Earnings of Affiliates		2,529			1,968

Income from Continuing Operations Before Income Taxes and Minority Interests		63,438			58,400
Income Taxes		(23,473	)		(21,457	)
Minority Interests		(702	)		(636	)

Income from Continuing Operations		39,263			36,307
Income from Discontinued Operations, Net of Tax		1,092			386

Net Income	$	40,355		$	36,693

Income from Continuing Operations Per Diluted Share	$	0.42		$	0.38

Diluted EPS	$	0.43		$	0.39

Diluted Weighted Average Shares Outstanding		94,532			94,636

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


	Six Months
	2007			2006
Revenues:
New Vehicle	$	3,479,067		$	3,017,486
Used Vehicle		1,617,464			1,187,322
Finance and Insurance, Net		144,666			123,745
Service and Parts		710,310			600,905
Fleet and Wholesale Vehicle		538,570			462,725

Total Revenues		6,490,077			5,392,183
Cost of Sales:
New Vehicle		3,187,699			2,752,530
Used Vehicle		1,490,807			1,082,744
Service and Parts		313,501			269,806
Fleet and Wholesale Vehicle		534,586			458,554

Cost of Sales		5,526,593			4,563,634

Gross Profit		963,484			828,549
SG&A Expenses		764,862			657,345
Depreciation and Amortization		26,147			20,982

Operating Income		172,475			150,222
Floor Plan Interest Expense		(35,721	)		(30,191	)
Other Interest Expense		(31,776	)		(23,383	)
Equity in Earnings of Affiliates		1,708			3,118
Debt Redemption Charge		(18,634	)		—

Income from Continuing Operations Before Income Taxes and Minority Interests		88,052			99,766
Income Taxes		(31,829	)		(36,521	)
Minority Interests		(996	)		(1,058	)

Income from Continuing Operations		55,227			62,187
Loss from Discontinued Operations, Net of Tax		(290	)		(1,539	)

Net Income	$	54,937		$	60,648

Income from Continuing Operations Per Diluted Share	$	0.58		$	0.66

Diluted EPS	$	0.58		$	0.64

Diluted Weighted Average Shares Outstanding		94,483			94,499

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


	6/30/07		12/31/06
Assets
Cash and Cash Equivalents	$	18,256	$	13,147
Accounts Receivable, Net		474,674		470,301
Inventories		1,635,690		1,525,800
Other Current Assets		99,653		71,526
Assets Held for Sale		139,907		190,881

Total Current Assets		2,368,180		2,271,655
Property and Equipment, Net		563,548		582,407
Intangibles		1,626,259		1,506,004
Other Assets		93,094		109,736

Total Assets	$	4,651,081	$	4,469,802

Liabilities and Stockholders’ Equity
Floor Plan Notes Payable	$	1,108,688	$	874,326
Floor Plan Notes Payable – Non-Trade		452,850		298,703
Accounts Payable		290,911		301,592
Accrued Expenses		257,126		214,544
Current Portion Long-Term Debt		14,725		13,385
Liabilities Held for Sale		69,959		50,560

Total Current Liabilities		2,194,259		1,753,110
Long-Term Debt		831,771		1,168,666
Other Long-Term Liabilities		277,135		252,373

Total Liabilities		3,303,165		3,174,149
Stockholders’ Equity		1,347,916		1,295,653

Total Liabilities and Stockholders’ Equity	$	4,651,081	$	4,469,802


	Second Quarter						Six Months
	2007			2006			2007			2006
Total Retail Units
New Retail		51,449			47,508			97,033			89,850
Used Retail		26,862			22,364			52,559			42,361

Total Retail		78,311			69,872			149,592			132,211

Same-Store Retail Units
New Same-Store Retail		46,808			46,884			88,390			87,701
Used Same-Store Retail		23,471			22,028			44,585			40,665

Total Same-Store Retail		70,279			68,912			132,975			128,366

Same-Store Retail Revenue
New Vehicles	$	1,662,883		$	1,563,628		$	3,129,150		$	2,931,834
Used Vehicles		717,171			624,360			1,327,178			1,130,131
Finance and Insurance, Net		69,680			65,122			131,031			120,858
Service and Parts		323,390			303,413			629,556			582,177

Total Same-Store Retail	$	2,773,124		$	2,556,523		$	5,216,915		$	4,765,000

Same-Store Retail Revenue Growth
New Vehicles		6.3	%		1.5	%		6.7	%		2.3	%
Used Vehicles		14.9	%		8.8	%		17.4	%		7.3	%
Finance and Insurance, Net		7.0	%		8.5	%		8.4	%		7.3	%
Service and Parts		6.6	%		8.0	%		8.1	%		8.1	%
Revenue Mix
New Vehicles		54.2	%		55.8	%		53.6	%		56.0	%
Used Vehicles		24.5	%		22.3	%		24.9	%		22.0	%
Finance and Insurance, Net		2.2	%		2.3	%		2.2	%		2.3	%
Service and Parts		10.6	%		10.8	%		11.0	%		11.1	%
Fleet and Wholesale		8.5	%		8.8	%		8.3	%		8.6	%
Average Retail Selling Price
New Vehicles	$	35,595		$	33,334		$	35,854		$	33,584
Used Vehicles	$	30,863		$	28,259		$	30,774		$	28,029
Gross Margin		14.7	%		15.1	%		14.9	%		15.4	%
Retail Gross Margin – by Product
New Vehicle		8.3	%		8.8	%		8.4	%		8.8	%
Used Vehicle		7.9	%		8.6	%		7.8	%		8.8	%
Service and Parts		56.2	%		55.1	%		55.9	%		55.1	%
Gross Profit per Retail Transaction
New Vehicles	$	2,971		$	2,921		$	3,003		$	2,949
Used Vehicles		2,435			2,433			2,410			2,469
Finance and Insurance		967			940			967			936


	Second Quarter						Six Months
	2007			2006			2007			2006
Brand Mix:
BMW		22	%		16	%		22	%		16	%
Toyota/Lexus		20	%		22	%		19	%		22	%
Honda/Acura		15	%		16	%		14	%		16	%
DCX		11	%		11	%		12	%		11	%
Ford		9	%		10	%		10	%		11	%
Audi		7	%		7	%		8	%		7	%
Porsche		4	%		4	%		4	%		4	%
General Motors		3	%		4	%		3	%		4	%
Nissan/Infiniti		3	%		3	%		3	%		3	%
Other		6	%		7	%		5	%		6	%

		100	%		100	%		100	%		100	%
Premium		65	%		60	%		66	%		61	%
Foreign		30	%		33	%		29	%		32	%
Domestic Big 3		5	%		7	%		5	%		7	%

		100	%		100	%		100	%		100	%
Revenue Mix:
U.S.		63	%		71	%		62	%		70	%
International		37	%		29	%		38	%		30	%

		100	%		100	%		100	%		100	%
Debt to Total Capital Ratio		39	%		37	%		39	%		37	%
Rent Expense	$	37,914		$	33,423		$	74,851		$	65,351


Contact:	Bob O’Shaughnessy Chief Financial Officer 248-648-2800 boshaughnessy@penskeautomotive.com	Tony Pordon Senior Vice President 248-648-2540 tpordon@penskeautomotive.com