Chrysler has maintained its contractual commitment to NASCAR during its bankruptcy.

Auto mogul Roger Penske played down suggestions he was preparing to pounce on General Motors’ Saturn Group, during a conference call today with reporters and financial analysts.

 “Penske Automotive has not made an offer to GM for Saturn,” he said. Penske added that the time frame for making any kind of offer was “extremely short.”

GM said this week that it was convinced it could sell Saturn to outside investors, but did not identify any of the potential buyers. Penske, however, also acknowledged that current recession has made opportunistic acquisitions possible both the U.S. and Europe.

Penske also said he believed Chrysler could emerge from bankruptcy a very viable company. “I really believe Chrysler can come out of this a stronger company,” he said. Penske, of course, runs Chrysler’s NASCAR racing operation through another subsidiary, in what was once a lucrative contract.

Penske Automotive Group Inc.’s first quarter income was slashed nearly in half by the ongoing turmoil in the automotive industry, which trimmed the company’s revenues by one third. 

Penske said that he believed an improvement in consumer confidence was one of the keys to a recovery in auto sales.

The Penske Automotive Group also did about as well as expected given the conditions prevailing in both the U.S. and Europe. Penske Automotive Group operates 310 retail automotive franchises, representing 40 different brands and 25 collision repair centers.

“In light of the challenging economic conditions in all of our markets, we are pleased with the performance of our business in the first quarter,” Penske said.

 “Despite new vehicle sales approaching a 30-year low in the U.S. and a 30% decline in new vehicle registrations in the U.K. during the March registration period, our ability to reduce costs and inventory levels helped us achieve profitability in the first quarter,” he said.

Overall, the Penske Automotive reported first quarter income from continuing operations of $16.2 million, or 18 cents per share, compared to income from continuing operations of $32.3 million, or 33 cents per share in the first quarter of 2008.

The first-quarter earnings included a $6.5 million, or 7 cents per share, after-tax gain relating to the repurchase of $69 million of senior subordinated convertible notes due 2026. Excluding this gain, adjusted income from continuing operations amounted to $9.7 million, or 11 cents per share, Penske reported.

Total Penske Group’s total revenue dropped by nearly one third to $2.2 billion compared to $3.2 billion in the same period last year. The decline in revenue was driven principally by a 31.2% decrease in total retail sales. The drop included a 34.5% decline in same-store retail revenue.

Despite broad weakness in the new vehicle market in the U.S. and the U.K., the company used-vehicle business performed relatively well, as used vehicle sales increased 1.6%, Penske said.

The service and parts business also performed well, declining 8.8% in total, but only 2.6% on a same-store basis excluding changes relating to exchange rates.

Penske also reported that smart USA subsidiary also wholesaled 5,714 units, and for the year expects to wholesale approximately 20,000 units.

SOURCE: Penske Automotive Group, Inc.