Penske Corporation informed employees on Saturday that pay cuts will be enacted against the company’s senior leadership, with layoffs possible, as the global coronavirus shutdown continues into its third week.

The letter was penned by chairman Roger Penske and was sent to every employee across the various Penske Corporation holdings. In addition to the Team Penske motorsports organization, Penske also recently acquired the Indianapolis Motor Speedway and IndyCar Series.

Penske’s primary business is within the transportation industry, where he operates numerous commercial and private entities. In total, Penske Corporation employs more than 60,000 people across the globe.



Jared C. Tilton Getty Images

The memo said Penske and company president Rob Kurnick will forfeit 100 percent of their salaries throughout the duration of the COVID-19 crisis. The Penske Corporation board of directors has also waived its cash compensation for the next six months.

In the letter, the company reported a "very low" number of employees afflicted with the novel coronavirus.

All Penske Corporation entities in the United Kingdom, Italy and Spain have been shut down. In Germany and Australia, sales operations are closed. The service/parts facilities remain open, but their business has declined as a result of the shutdown.

In the United States, Penske Transportation Solutions, along with associated automotive and commercial dealerships, have been declared as 'essential businesses,' and remain open.



The IndyCar Series season has been postponed until late May's Duel in Detroit at Belle Isle Raceway Park. The Indianapolis 500 has been postponed to August.

In an interview with the Associated Press on Saturday, Penske summed up the scenario.

"I took the road that gave us the longest distance, five months," Penske said. "If this thing isn’t over in five months, we’ve got bigger problems."

The Team Penske racing shop was shuttered this past week after North Carolina governor Roy Cooper ordered all non-essential businesses to close.

Penske's memo said notifications will come from management leaders if layoffs become necessary. That message goes beyond just motorsports and into all Penske Corporation holdings.

"For those of you who may be impacted with a workforce reduction, government programs and unemployment benefits may be immediately available to you ... Many factors will impact the length of workforce reductions, including federal and local guidance and the conditions in your individual businesses. We will continue to monitor the situation closely."

NASCAR ordered a 25% reduction in salary for senior leadership and a 20% reduction for all other employees, while urging staff to take a week of vacation over the next month.



Obtained by Autoweek

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