AutoNation Supports General Motors Consolidation Plan

The AutoNation Stores Impacted by GM's Actions Today Represent 0% of AutoNation 2008 Operating Income

FORT LAUDERDALE, Fla., May 15 -- AutoNation, Inc. , American's largest automotive retailer, today announced that General Motors notified AutoNation that six of its dealerships were identified for potential closing by GM. The notification is part of GM's communication today to approximately 1,100 dealers that GM does not expect to continue as GM dealerships past October 2010. The AutoNation stores potentially impacted by the consolidation plan represent 0% 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 GM's consolidation plan is a difficult but positive step that will strengthen America's dealer network and improve dealer profitability over the long term. 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."