Two Penske California Dealerships Get Federal Money To Upgrade Facilities - Huh?

Washington DC January 24, 2008; Longo Toyota and Longo Lexus, part of the Penske Automotive Group, are getting $500,000 in federal funds as part of a multi-million-dollar deal to upgrade the nation's largest dealership, according to a report in dealersedge.com.

The funds come from a U.S. Department of Housing and Urban Development grant program. The deal has resulted in the construction of a 50,000-square-foot service facility, additional parking space for vehicle storage and display, a revamped showroom, and a 2,500-car parking structure behind the dealership.

The agreement required Longo to use the funds to create at least 35 new full-time jobs, and possibly up to 90, within four years. Conditions for the $500,000 in federal funds require the creation of 15 additional jobs, which the dealerships have far exceeded. The sales tax increase resulting from the renovations has already more than covered the city's investment.