Automotive: Penske Auto strikes deal with VW for Cupra brand

Assuming incoming USA President Donald Trump does not slap a huge tariff on the cars, Roger Penske is set to play a pivotal role in Volkswagen Group’s latest attempt to crack the American automotive market.

As Volkswagen pivots to introduce its sporty sub-brand Cupra in the US, the German giant is leaning on Penske’s vast dealership empire.

Volkswagen Group, well-established in Europe, has long struggled to replicate that success in North America.

In an attempt to change the narrative, the automaker has earmarked its Cupra brand—a sporty, performance-focused offshoot—for the US market.

Central to this push is Cupra’s upcoming line of electric vehicles (EVs). However, Trump has said he will kill the EV subsidy and remove any EV mandate by a certain year, which could slow EV sales dramatically.

Volkswagen Group CEO Oliver Blume expressed confidence in this partnership, highlighting the decades of trust between VW and Penske:

“There’s a big trust [established] over many, many years. He’s very successful in the U.S. And so we think that will fit perfectly.”

This collaboration with Penske Automotive Group is expected to create a powerful distribution network for Cupra, leveraging Penske’s strong connections and customer base across the country.

Penske’s involvement could be the game-changer VW desperately needs. With his Penske Automotive Group ranking as the third-largest dealership network in the US, his expertise and business acumen are unrivaled. Penske’s deep roots in motorsports and his success in dealership operations make him the ideal partner to launch Cupra successfully.

Volkswagen is banking on Penske’s ability to navigate the complexities of the US market while tapping into his trusted brand to establish credibility for Cupra.