AutoNation Car Dealers Restock after Clunker Plan's Success

Washington DC September 4, 2009; The AIADA newsletter reported that according to the Detroit Free Press, AutoNation Inc. said it will increase vehicle orders in the fourth quarter as it seeks to restock showroom floors emptied out during the Cash for Clunkers program.

The Ft. Lauderdale, Fla.-based auto retailer said it would boosts orders 50 percent in the fourth quarter from the third quarter. The company also ordered more cars than expected in the third quarter. "We had such a huge success with cash for clunkers that we are lean and need to increase orders of core products," said CEO Mike Jackson.

The nation's largest dealership chain said it sold 13,000 vehicles during the clunkers program which began in late July and extended into August. The company's dealerships stopped selling cars under the program three days before it officially ended to ensure dealers were able to process the paperwork to receive per vehicle reimbursements of $3,500 or $4,500.

The government owes AutoNation more than $54 million from clunker sales, with Jackson adding that the company's dealers have "received a very small portion" of the rebate cash owed so far.

Click here to read more about AutoNation's plans to restock inventory at its dealerships following the Clunkers program.