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| Type | Public (NYSE: AN) |
|---|---|
| Founded | 1981 (as Republic) April 6, 1999 (as AutoNation) |
| Headquarters | Fort Lauderdale, Florida, USA |
| Industry | Car dealership |
| Revenue | $Approx 18 Billion[1] |
AutoNation is a chain of auto dealerships founded by entrepreneur H. Wayne Huizenga,[2] also founder of Blockbuster and Waste Management.[3] The company, founded in 1996, is headquartered in Fort Lauderdale, Florida. The current Chairman and CEO is Mike Jackson, former CEO of Mercedes Benz North America
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Company operations
AutoNation, Inc. is the largest automotive retailer in the United States.[4] AutoNation has 272 dealerships nationwide, and employs approximately 25,000 employees. AutoNation sells 37 different manufacturer brands nationwide. AutoNation outsells every other automotive retailer in the U.S. and is ranked #138 on the 2008 Fortune 500.[1] The company has a significant internet presence, offering its entire inventory for online searching.[5]
Total company revenue is as follows:
- 59% New Vehicles ($11.5 billion in 2005)
- 23% Used Vehicles ($4.4 billion in 2005)
- 14% Parts and Service ($2.2 billion in 2005)
- 3% Financing and Insurance ($615 million in 2005)
AutoNation brands
Instead of supporting a national mark, AutoNation has developed a unique brand name for its dealerships in each market.
These include the following:
- Appleway -- Spokane
- Autoway[6] -- Tampa Bay
- Autowest -- Sacramento, San Francisco Bay Area
- Bankston -- Texas
- Champion[6] -- Austin, Houston, Corpus Christi
- Cook-Whitehead -- Panama City, Florida
- Courtesy[6] -- Orlando
- Desert[6] -- Las Vegas
- Dobbs[6] -- Memphis
- Fox[6] -- Baltimore
- Go -- Denver (formerly "John Elway" until 12/26/2006.[7])
- Maroone -- South Florida with the exception of Lexus of Palm Beach and two Mercedes-Benz locations[6]
- Mike Shad -- Jacksonville
- Mullinax -- Cleveland (1996)[6]
- Power -- Southern California, Phoenix
- Team[6] -- Atlanta
- Treadwell -- Mobile, Alabama
- West -- Northwest
E-Vehicles Program
E-Vehicles Program, in partnership with Edmunds.com, identifies fuel-efficient vehicles, with 8.40 L/100km (28 miles per gallon) or deliver 10% better fuel efficiency than the average for their vehicle class.
History
The corporation began its existence in 1981 as Republic Industries, Inc.[2] and was in the waste disposal business. H. Wayne Huizenga became chairman of the Board of Directors in 1995.[8] Republic got into used auto sales with Huizenga involvement in the company purchasing Auto Nation USA, from Huizenga in 1997[6], and then Car Choice Inc.[9] Republic began opening AutoNation used megastores. CarMax sued Republic for copyright and trademark infringement and other issues. Republic's sales for 1995 was $5.2 billion.[8]
In 1996, Republic began purchasing new car dealerships and offer long term contracts for the owner to join their automotive division management. Some dealers began seek out Republic to sell their dealership to because of the long term contract offer to selling owners. Republic build twelve AutoNation locations in 1996.[8] Alamo Rent A Car was acquired in 1996.[9] A 2 for 1 split in the company stock was completed in 1996. Huizenga attempt to expand the corporation's electronic security division with the purchase of ADT, Ltd. but the aquistion was called off.[8] In 1997, Republic continued its acquisition in the car rental business with purchasing National Car Rental, Spirit Rent-A-Car, Value Rent-A-Car, Snappy Car Rental, and EuroDollar Rent A Car. In October 1997, Republic sold off its electronic security division after failing to expand it with the attempted purchase of ADT. Huizenga had Republic start consolidating operations between new and used cars and its rental companies into one operation. Acquiring six Saturn dealerships in Arizona and Florida, Republic sold the dealerships to Saturn in 1997 because they did not generate enough sales despite being a great brand.[8] Maroone Automotive Group of Buffalo, NY and Florida was acquired in 1997 for $200 million in Republic Stock.[6]
Republic Industries offered in July 1998 an initial public offering (IPO) of Republic Services, the waste disposal division, its original business. From this sale of 36% of Republic Services, Republic Industries neted $1.4 billion. While CarMax had received a $50 million jury award in its lawsuit it was turn over during an appeal in 1998.[8] Drivers' Mart, a competitor, was purchased.[10]
The remaining 64% of Republic Services were spun off to Republic Industries shareholders in 1999.[8] The company's first Chief Executive Officer (CEO) was Steve Berrard, who resigned from the company in July 1999.[11] Mike Jackson, CEO, move to spin off the car rental business as ANC Rental. AutoNation USA used car megastores, which lost $25 million the quarter before, were all closed down. Plans to brand all auto dealers as AutoNation are scrapped and a regional brand focus is instituted.[6]
In January 2003, Jackson is named chairman of the board replacing Huizenga.[6] In October 24, 2005, the AutoNation building in downtown Fort Lauderdale suffered significant damage due to Hurricane Wilma.[12]
In 2006 Mike Jackson, CEO of AutoNation announced[13] that his company would be reducing orders from General Motors, Ford and Chrysler in 2007. Jackson made the statement that the company will instead focus on selling BMW, Mercedes and Lexus vehicles due to anticipation of further market share loss by US automakers resulting in high dealer inventories. [1]
In 2009 AutoNation announced the AutoNation Payment Protection program, promising that the dealership will buy back any car at market value, should the owner lose their job.[2]
Notes
- ^ a b Fortune 500: AutoNation, CNN Money/Fortune, accessed May 21, 2008.
- ^ a b Bradsher, Keith, "Republic's Huizenga Wants to Dominate the Market", The New York Times, pp. D1, March 6, 1997.
- ^ Gallagher, Richard S. (2002). The Soul of an Organization: Understanding the Values that Drive Successful Corporate Cultures. Kaplan Business. p. 113. ISBN 0-7931-5780-3.
- ^ White, Joseph B., "One Billion Cars", The Wall Street Journal, pp. R1, April 17, 2006.
- ^ Tucci, Christopher L.; and Afuah, Allan (2001). Internet Business Models and Strategies: Text and Cases. McGraw-Hill. p. 270. ISBN 0-07-239724-1.
- ^ a b c d e f g h i j k l m Broder-Singer, Rochelle (March 2003). "Over drive: AutoNation's founders set out to revolutionize the automotive retailing industry by sweeping up dealerships and creating a national brand. Instead, the industry changed AutoNation. In the end, it took two "car guys"CEO/Chairman Mike Jackson and President/COO Mike Marooneto rev up profits at the largest dealership group in the country - Cover Story". South Florida CEO. Gale Group. pp. 1-8. Archived from the original on 04 Nov, 2009. http://findarticles.com/p/articles/mi_m0OQD/is_3_6/ai_112800245/. Retrieved 2009-11-04.
- ^ "AutoNation benches Elway's name," Denver Post, December 1, 2006,
- ^ a b c d e f g "Republic Industries, Inc. Company History". Company Profiles. fundinguniverse.com. http://www.fundinguniverse.com/company-histories/Republic-Industries-Inc-Company-History.html. Retrieved 2009-11-03.
- ^ a b Bagli, Charles V. (November 8, 1996). "In Alamo Deal, Republic Puts More Money On Used Cars". New York Times (New York, NY: New York Times Company): p. D1. http://www.nytimes.com/1996/11/08/business/in-alamo-deal-republic-puts-more-money-on-used-cars.html. Retrieved 2009-11-04.
- ^ Evarts, Eric C. (March 18, 2002). "Dealers stay in driver's seat". Christian Science Monitor (Christian Science Monitor). http://www.csmonitor.com/2002/0318/p18s01-wmcn.html. Retrieved 2009-11-04.
- ^ "Autonation Chief Executive Agrees to Step Down", The New York Times, July 1, 1999.
- ^ Hoag, Christina, and Danner, Patrick, "Creatively coping with chaos: South Florida's hurricane-worn companies are making do to keep going despite a lack of offices", The Miami Herald, October 27, 2005.
- ^ Chakvorti, Jui, AutoNation slowed '07 model orders: CEO, Reuters, September 12th, 2006.
Further reading
- Flynn, Michael S. (March 2001) (PDF). The Economy, Competition, and the Retail Automotive Dealer. Final Report. The University of Michigan Transportation Research Institute. http://deepblue.lib.umich.edu/bitstream/2027.42/1344/2/94313.0001.001.pdf. Retrieved 2006-11-28.
External links
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