AutoNation Supports Chrysler Consolidation Plan

Chairman and CEO sees AutoNation well positioned in wake of Chrysler developments

FORT LAUDERDALE, Fla., May 14, 2009: AutoNation, Inc. , American's largest automotive retailer, today announced that it will be closing seven Chrysler dealerships. As part of the dealer consolidation plan filed by Chrysler today in its bankruptcy, approximately 789 Chrysler dealerships will be closed nationwide. The AutoNation stores that will be closed by the consolidation plan represented only 1% of AutoNation's 2008 operating income. AutoNation does not believe that any one-time charges that may be associated with these actions will be material to its continuing operations or debt covenants.

Commenting on the consolidation plan, Mike Jackson, Chairman and Chief Executive Officer, said, "We believe Chrysler's consolidation plan is a difficult but positive step forward for Chrysler and the automotive retail industry. Dealer consolidation is a necessary measure in today's automotive industry and will strengthen America's dealer network and improve dealer profitability over the long term."

Mr. Jackson commented further, "The consolidation plan is consistent with AutoNation's long-term strategy that we implemented in 2000 to consolidate domestic dealerships and realign our brand mix more towards import and premium luxury franchises. With our financial and operational strength and diversified brand mix, we are well-positioned to succeed in the rapidly changing automotive retail landscape."