AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. As of December 31, 2014, the company owned and operated 276 new vehicle franchises from 232 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. The company’s stores sell 34 different new vehicle brands. It offers a range of automotive products and services, including new vehicles, used vehicles, parts and service, which includes automotive repair and maintenance services, as well as wholesale parts and collision businesses, and automotive finance and insurance products, which includes the vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. The company’s stores provide a range of vehicle maintenance, repair, and collision repair services, including manufacturer recall repairs and other warranty work that can be performed only at franchised dealerships and customer-pay service work. Its parts and service departments also provide reconditioning repair work for used vehicles acquired by its used vehicle departments and minor preparatory work for new vehicles acquired by its new vehicle departments. In addition to its retail business, the company has a wholesale parts operation, which sells automotive parts to both collision repair shops and independent vehicle repair providers. The company offers various automotive finance and insurance products to its customers. The company arranges for its customers to finance vehicles through installment loans or leases with third-party lenders, including the vehicle manufacturers’ and distributors’ captive finance subsidiaries, in exchange for a commission payable to the company. The company also offers its customers various vehicle protection products, including extended service contracts, maintenance programs, guaranteed auto protection (known as GAP, this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), tire and wheel protection, and theft protection products. These products are underwritten and administered by independent third parties, including the vehicle manufacturers’ and distributors’ captive finance subsidiaries. Segments The company operates in three segments, including Domestic, Import, and Premium Luxury. The Domestic segment consists of retail automotive franchises that sell new vehicles. The company’s vehicle brands include Buick; Cadillac; Chevrolet; Chrysler; Dodge; Ford; GMC; Jeep; Lincoln; and Ram. The Import segment consists of retail automotive franchises that sell new vehicles. The company’s vehicle brands include Acura; Fiat; Honda; Hyundai; Infiniti; Mazda; Mitsubishi; Nissan; Scion; Subaru; Toyota; Volkswagen; and Volvo. The Premium Luxury segment consists of retail automotive franchises that sell new vehicles. The company’s vehicle brands include Alfa Romeo; Audi; Bentley; BMW; Land Rover; Lexus; Maserati; Mercedes-Benz; Mini; Porsche; and smart. The franchises in each segment also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products. Business Strategy The key elements of the company’s strategy include seeking to deliver a consistently superior customer experience by offering a large selection of inventory, customer-friendly, transparent sales and service processes, and competitive pricing; managing its new and used vehicle inventories so that its stores’ supply and mix of vehicles is in line with seasonal sales trends; and seeking to offer all of its core vehicle brands within all of its key markets. Seasonality The company’s operations experience higher volumes of vehicle unit sales in the second and third quarters of each year (year ended December 31, 2014) due in part to consumer buying trends and the introduction of new vehicle models. Also, demand for vehicles and light trucks is generally lower during the winter months than in other seasons, particularly in regions of the United States where stores may be subject to adverse winter conditions. However, the company typically experiences higher sales of Premium Luxury vehicles, which have higher average selling prices and gross profit per vehicle retailed, in the fourth quarter. Trademarks The company owns registered service marks and trademarks, including AutoNation. Regulations The company’s operations are subject to the National Traffic and Motor Vehicle Safety Act, Federal Motor Vehicle Safety Standards promulgated by the United States Department of Transportation, and the rules and regulations of various state motor vehicle regulatory agencies. History AutoNation, Inc. was founded in 1991. The company was incorporated in Delaware in 1991.
(AN:New York Consolidated)
200 SW 1st Avenue
Fort Lauderdale, FL 33301
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