AutoNation, the largest Auto Retailer in the USA,[3] was founded by entrepreneur H. Wayne Huizenga,[4] also founder of Blockbuster and Waste Management.[5] 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. The current President and Chief Operation Officer is Mike Maroone; previously of Maroone Automotive Group of South Florida.
AutoNation, Inc., through its subsidiaries, incorporated in 1991, is an automotive retailer in the United States. As of December 31, 2010, the Company owned and operated 242 new vehicle franchises from 206 stores located in the United States, in metropolitan markets in the Sunbelt region. Its stores sell 31 different brands of new vehicles. The brands of vehicles that it sold, during the year ended December 31, 2010, were manufactured by Toyota, Ford, Honda, Nissan, General Motors, Mercedes, BMW and Chrysler. It operates in three segments: Domestic, Import and Premium Luxury. The Domestic segment consists of retail automotive franchises that sell vehicles manufactured by General Motors, Ford, and Chrysler. The Import segment consists of retail automotive franchises that sell vehicles manufactured by Toyota, Honda, and Nissan. The Premium Luxury segment consists of retail automotive franchises that sell vehicles manufactured by Mercedes, BMW, and Lexus.
The franchises in each of the Company’s segment sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products. For the year ended December 31, 2010, Domestic revenue represented 33% of total revenue, Import revenue represented 38% of total revenue, and Premium Luxury revenue represented 28% of total revenue. The Company retailed approximately 370,000 new and used vehicles through its stores during 2010. During 2010, approximately 42% of its new vehicle revenue was generated by Import franchises, approximately 27% by Premium Luxury franchises, and approximately 31% was generated by Domestic franchises.
Developing the online AutoNation brand and partnering up with well-known and well-connected Internet companies was an important next step in AutoNation's reach for new-vehicle sales success. On May 15, 2000, AutoNation and AOL announced their intention to ally and build the world's largest "virtual auto dealership." The companies built a co-branded Web site called, "AOL AutosDirect, Powered by AutoNation.com." The deal allowed AutoNation to be the exclusive retailer of new-and-used vehicles to AOL members who purchased a car or truck through the new co-branded site. AOL members who purchased vehicles through this site were eligible to receive a slew of exclusive benefits.
Another important announcement, along the same lines as the AOL announcement, made on May 15, 2000, was that AutoNation acquired AutoVantage, a car-buying service from Cendant Corporation. AutoVantage was ranked by J.D. Power & Associates as one the most popular automotive lead providers, and had a network of approximately 900 dealers throughout the country. The purchase of AutoVantage gave AutoNation the reach they would need to serve AOL's geographically diverse customer base.
AutoVantage and AOL were not the only two exciting Internet partnerships that AutoNation had in the works. In October 2000, the company reached an agreement with Autoweb.com to allow AutoNation to use their content and technology platform of the Autoweb Web site. Autoweb.com technology allowed Web users to configure a vehicle by manufacturer, make, model, trim specifications, and other options, and then to perform comparison shopping with similar vehicles.
AutoNation did not limit Internet partnerships to the year 2000. In February 2001, the company entered into a three-year partnership with MSN CarPoint. Under their agreement, CarPoint would send Internet sales leads to AutoNation's dealerships and affiliated dealerships.
Stock Prices Soar: 2001
AutoNation's low stock price was affected by the success of their many high-profile Internet deals and the company's focus on new-car sales. Since 1997, AutoNation's stock had sunk steadily (more or less). The stock had traveled from more than $40 a share in January 1997 to $6.875 per share in 2000. Since January 1, 2001, share prices roughly doubled for AutoNation-- the company's market capitalization had jumped to $3.6 billion.
New Developments in Successful Times
In order to continue serving their customers in the most friendly and responsible way, AutoNation created a managers' training program patterned after the successful programs developed by Burger King and The Walt Disney Co. The school aimed at establishing operating standards throughout its car dealership network. The education program was taught by ten AutoNation trainers and company executives and lasted 21/2 days.
In October 2001, AutoNation announced that it had built an online dealer network of 2,928 franchises, called "e-Tail Network, Powered by AutoNation." Senior Vice-President of Operations Allan Stejskal, told Automotive News' Donna Harris that, "We expect to handle 2 million leads a year."
ANC Causes Trouble for AutoNation
Just months after AutoNation spun off ANC Rental (June 2000), ANC filed for Chapter 11 bankruptcy (November 13, 2001). When AutoNation spun off ANC, the company continued to guarantee its former unit's credit, as well as the six- to nine-month leases of a large amount of vehicles from Mitsubishi Motor Sales of America Inc. The bankruptcy filing caused AutoNation to come to terms with the fact that they were not free from the woes of ANC's failing business. In an AutoNation filing with the U.S. Securities and Exchange Commission (SEC), the company reported that the Mitsubishi leases held AutoNation obligated for $4 million to $5 million a month, with the possibility of the obligation rising to $8 million a month. AutoNation feared that it could end up paying upward of $150 million if it had to cover ANC's credit obligations.
Exit from Lending Operations
To boost automotive sales, post-September 11, 2001, after the terrorist attacks in the United States, many loan companies offered low-no-interest loans (subvention loans). Loans like this, although they did boost new-car sales, usurped market share from AutoNation's finance business. AutoNation refused to offer loss-leading loans stating in the Asset Securitization Report in December 2001, "As an independent finance company, we are not in business strictly to move metal, and you have to profit from your loans. We absolutely refuse to compete with subverting zero-percent loans." AutoNation decided to exit the loan-origination aspect of the auto business in December 2001. The company's exit from the loan business had little impact on outstanding loan deals, due to the fact that World Omni Financial had long been contracted by AutoNation to do the actual financial work of the loans AutoNation was listed as the master servicer on.
New-and-Used Car Sales up for AutoNation: 2002
Automotive News reported in May 2002 that AutoNation topped both the used-vehicle sales and new-vehicle sales tallies for 2001. In addition to their selling success, AutoNation officials reported (in a conference call with Daily Business Review in April 2002) first-quarter earnings of $91.7 million, or 28 cents a share, compared with the earlier year's $59 million, or 17 cents a share. The company's streamlined focus on selling new-and-used cars is proving to be a successful business choice.
Principal Subsidiaries:AutoNation Financial Services; House of Imports, Inc.
Principal Competitors:Group 1 Automotive, Inc.; Sonic Automotive, Inc.; United Auto Group, Inc.
OVERALL
Beta: 1.25
Market Cap (Mil.): $5,014.86
Shares Outstanding (Mil.): 147.89
Annual Dividend: --
Yield (%): --
FINANCIALS
AN.N Industry Sector
P/E (TTM): 21.30 4.62 13.52
EPS (TTM): 15.65 -- --
ROI: 6.84 4.25 1.28
ROE: 11.05 4.90 2.12
Statistics:
Public Company
Incorporated: 1998
Employees: 30,000 (2001 est.)
Sales: $20 billion (2001)
Stock Exchanges: NYSE
Ticker Symbol: AN
NAIC: 441110 New Car Dealers; 441120 Used Car Dealers; 522220 Automobile Financing; 524210 Insurance Agencies and Brokerages; 811111 General Automotive Repair
Key Dates:
1995: H. Wayne Huizenga purchases Republic Industries Inc.
1996: Republic purchases National Car Rental and begins acquiring new-car dealerships.
1997: Republic spins off its waste business as Republic Services Inc.
1998: Republic changes its name to AutoNation, Inc.
1999: AutoNation launches AutoNationDirect.com.
2000: AutoNation completes the spinoff of ANC Rental Corp; co-brands a Web site with AOL called AOL AutosDirect; purchases AutoVantage, a car-buying service; and uses Autoweb.com's content platform.
2001: AutoNation debuts its online dealership group, "e-Tail Network"; and forms a three-year partnership with MSN CarPoint to generate sales leads.
Name Age Since Current Position
Jackson, Michael 62 2003 Chairman of the Board, Chief Executive Officer
Maroone, Michael 57 2005 President, Chief Operating Officer, Director
Short, Michael 49 2007 Chief Financial Officer, Executive Vice President
Ferrando, Jonathan 45 2005 Executive Vice President, General Counsel, Secretary
Westfall, Kevin 55 2005 Senior Vice President - Sales
Brown, Robert 76 2010 Independent Director
Burdick, Rick 59 1991 Independent Director
Crowley, William 53 2002 Independent Director
Grusky, Robert 53 2006 Independent Director
Migoya, Carlos 60 2006 Independent Director
Edelson, David 51 2008 Independent Director
Larson, Michael 51 2010 Independent Director
Rosenthal, Alison 34 2011 Independent Director
Address:
AutoNation Tower
110 S.E. Sixth Street
Ft. Lauderdale, Florida 33301
U.S.A.
AutoNation, Inc., through its subsidiaries, incorporated in 1991, is an automotive retailer in the United States. As of December 31, 2010, the Company owned and operated 242 new vehicle franchises from 206 stores located in the United States, in metropolitan markets in the Sunbelt region. Its stores sell 31 different brands of new vehicles. The brands of vehicles that it sold, during the year ended December 31, 2010, were manufactured by Toyota, Ford, Honda, Nissan, General Motors, Mercedes, BMW and Chrysler. It operates in three segments: Domestic, Import and Premium Luxury. The Domestic segment consists of retail automotive franchises that sell vehicles manufactured by General Motors, Ford, and Chrysler. The Import segment consists of retail automotive franchises that sell vehicles manufactured by Toyota, Honda, and Nissan. The Premium Luxury segment consists of retail automotive franchises that sell vehicles manufactured by Mercedes, BMW, and Lexus.
The franchises in each of the Company’s segment sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products. For the year ended December 31, 2010, Domestic revenue represented 33% of total revenue, Import revenue represented 38% of total revenue, and Premium Luxury revenue represented 28% of total revenue. The Company retailed approximately 370,000 new and used vehicles through its stores during 2010. During 2010, approximately 42% of its new vehicle revenue was generated by Import franchises, approximately 27% by Premium Luxury franchises, and approximately 31% was generated by Domestic franchises.
Developing the online AutoNation brand and partnering up with well-known and well-connected Internet companies was an important next step in AutoNation's reach for new-vehicle sales success. On May 15, 2000, AutoNation and AOL announced their intention to ally and build the world's largest "virtual auto dealership." The companies built a co-branded Web site called, "AOL AutosDirect, Powered by AutoNation.com." The deal allowed AutoNation to be the exclusive retailer of new-and-used vehicles to AOL members who purchased a car or truck through the new co-branded site. AOL members who purchased vehicles through this site were eligible to receive a slew of exclusive benefits.
Another important announcement, along the same lines as the AOL announcement, made on May 15, 2000, was that AutoNation acquired AutoVantage, a car-buying service from Cendant Corporation. AutoVantage was ranked by J.D. Power & Associates as one the most popular automotive lead providers, and had a network of approximately 900 dealers throughout the country. The purchase of AutoVantage gave AutoNation the reach they would need to serve AOL's geographically diverse customer base.
AutoVantage and AOL were not the only two exciting Internet partnerships that AutoNation had in the works. In October 2000, the company reached an agreement with Autoweb.com to allow AutoNation to use their content and technology platform of the Autoweb Web site. Autoweb.com technology allowed Web users to configure a vehicle by manufacturer, make, model, trim specifications, and other options, and then to perform comparison shopping with similar vehicles.
AutoNation did not limit Internet partnerships to the year 2000. In February 2001, the company entered into a three-year partnership with MSN CarPoint. Under their agreement, CarPoint would send Internet sales leads to AutoNation's dealerships and affiliated dealerships.
Stock Prices Soar: 2001
AutoNation's low stock price was affected by the success of their many high-profile Internet deals and the company's focus on new-car sales. Since 1997, AutoNation's stock had sunk steadily (more or less). The stock had traveled from more than $40 a share in January 1997 to $6.875 per share in 2000. Since January 1, 2001, share prices roughly doubled for AutoNation-- the company's market capitalization had jumped to $3.6 billion.
New Developments in Successful Times
In order to continue serving their customers in the most friendly and responsible way, AutoNation created a managers' training program patterned after the successful programs developed by Burger King and The Walt Disney Co. The school aimed at establishing operating standards throughout its car dealership network. The education program was taught by ten AutoNation trainers and company executives and lasted 21/2 days.
In October 2001, AutoNation announced that it had built an online dealer network of 2,928 franchises, called "e-Tail Network, Powered by AutoNation." Senior Vice-President of Operations Allan Stejskal, told Automotive News' Donna Harris that, "We expect to handle 2 million leads a year."
ANC Causes Trouble for AutoNation
Just months after AutoNation spun off ANC Rental (June 2000), ANC filed for Chapter 11 bankruptcy (November 13, 2001). When AutoNation spun off ANC, the company continued to guarantee its former unit's credit, as well as the six- to nine-month leases of a large amount of vehicles from Mitsubishi Motor Sales of America Inc. The bankruptcy filing caused AutoNation to come to terms with the fact that they were not free from the woes of ANC's failing business. In an AutoNation filing with the U.S. Securities and Exchange Commission (SEC), the company reported that the Mitsubishi leases held AutoNation obligated for $4 million to $5 million a month, with the possibility of the obligation rising to $8 million a month. AutoNation feared that it could end up paying upward of $150 million if it had to cover ANC's credit obligations.
Exit from Lending Operations
To boost automotive sales, post-September 11, 2001, after the terrorist attacks in the United States, many loan companies offered low-no-interest loans (subvention loans). Loans like this, although they did boost new-car sales, usurped market share from AutoNation's finance business. AutoNation refused to offer loss-leading loans stating in the Asset Securitization Report in December 2001, "As an independent finance company, we are not in business strictly to move metal, and you have to profit from your loans. We absolutely refuse to compete with subverting zero-percent loans." AutoNation decided to exit the loan-origination aspect of the auto business in December 2001. The company's exit from the loan business had little impact on outstanding loan deals, due to the fact that World Omni Financial had long been contracted by AutoNation to do the actual financial work of the loans AutoNation was listed as the master servicer on.
New-and-Used Car Sales up for AutoNation: 2002
Automotive News reported in May 2002 that AutoNation topped both the used-vehicle sales and new-vehicle sales tallies for 2001. In addition to their selling success, AutoNation officials reported (in a conference call with Daily Business Review in April 2002) first-quarter earnings of $91.7 million, or 28 cents a share, compared with the earlier year's $59 million, or 17 cents a share. The company's streamlined focus on selling new-and-used cars is proving to be a successful business choice.
Principal Subsidiaries:AutoNation Financial Services; House of Imports, Inc.
Principal Competitors:Group 1 Automotive, Inc.; Sonic Automotive, Inc.; United Auto Group, Inc.
OVERALL
Beta: 1.25
Market Cap (Mil.): $5,014.86
Shares Outstanding (Mil.): 147.89
Annual Dividend: --
Yield (%): --
FINANCIALS
AN.N Industry Sector
P/E (TTM): 21.30 4.62 13.52
EPS (TTM): 15.65 -- --
ROI: 6.84 4.25 1.28
ROE: 11.05 4.90 2.12
Statistics:
Public Company
Incorporated: 1998
Employees: 30,000 (2001 est.)
Sales: $20 billion (2001)
Stock Exchanges: NYSE
Ticker Symbol: AN
NAIC: 441110 New Car Dealers; 441120 Used Car Dealers; 522220 Automobile Financing; 524210 Insurance Agencies and Brokerages; 811111 General Automotive Repair
Key Dates:
1995: H. Wayne Huizenga purchases Republic Industries Inc.
1996: Republic purchases National Car Rental and begins acquiring new-car dealerships.
1997: Republic spins off its waste business as Republic Services Inc.
1998: Republic changes its name to AutoNation, Inc.
1999: AutoNation launches AutoNationDirect.com.
2000: AutoNation completes the spinoff of ANC Rental Corp; co-brands a Web site with AOL called AOL AutosDirect; purchases AutoVantage, a car-buying service; and uses Autoweb.com's content platform.
2001: AutoNation debuts its online dealership group, "e-Tail Network"; and forms a three-year partnership with MSN CarPoint to generate sales leads.
Name Age Since Current Position
Jackson, Michael 62 2003 Chairman of the Board, Chief Executive Officer
Maroone, Michael 57 2005 President, Chief Operating Officer, Director
Short, Michael 49 2007 Chief Financial Officer, Executive Vice President
Ferrando, Jonathan 45 2005 Executive Vice President, General Counsel, Secretary
Westfall, Kevin 55 2005 Senior Vice President - Sales
Brown, Robert 76 2010 Independent Director
Burdick, Rick 59 1991 Independent Director
Crowley, William 53 2002 Independent Director
Grusky, Robert 53 2006 Independent Director
Migoya, Carlos 60 2006 Independent Director
Edelson, David 51 2008 Independent Director
Larson, Michael 51 2010 Independent Director
Rosenthal, Alison 34 2011 Independent Director
Address:
AutoNation Tower
110 S.E. Sixth Street
Ft. Lauderdale, Florida 33301
U.S.A.