Penske Automotive (PAG) has disclosed a new risk, in the Regulation category.
Penske Automotive faces heightened business risk due to stringent vehicle requirements set by governments and regulators. Federally mandated fuel economy standards and the EPA’s aggressive new emissions limits for light to medium-duty vehicles underscore a push towards electric vehicles, exemplified by the 49% reduction in GHG emissions required by 2032. In the international arena, the U.K.’s proposed ban on gasoline engines by 2035 and the European Parliament’s zero emission mandate for new cars signal a challenging transition for the automotive industry. These evolving regulations could materially impact Penske Automotive’s vehicle sales, pricing, and demand, posing a significant threat to its operational viability.
The average PAG stock price target is $143.33, implying -5.69% downside potential.
To learn more about Penske Automotive’s risk factors, click here.
