AutoNation Closes Used Car SuperStores
15 December 1999
AutoNation to Close Used-Car Superstores FORT LAUDERDALE, Fla. Associated Press reported that,AutoNation, the country's biggest auto retailer, is closing its used-car superstores, a move that will eliminate about 1,800 jobs nationwide. AP reported that the company will shut down 23 of the superstores and plans to convert six others into new-car dealerships, CEO Michael Jackson said. "Our focus now is on improving our operating margins and on creating a unique and branded customer experience in our new-vehicle franchises, which are now AutoNation's sole business focus," he said. They went on to report that eight of AutoNation's used-car outlets have already been transformed into new-car dealerships, a fate initially planned for all of the superstores. "At the end of the day, the risk-reward equation was simply not there, " said Jackson, a veteran of luxury-car maker Mercedes-Benz who was named AutoNation's chief executive officer in September. Jackson said AutoNation will honor its warranty and service obligations to its superstore customers. Last month, AutoNation laid off 145 workers at the company headquarters. The layoffs followed upheaval in the corporate suite this year as AutoNation confronts its lagging stock price. An earlier company release stated that AutoNation plans to move its $3.6 billion rental division back to Fort Lauderdale in January, spinning it off as a new company, ANC Rental Corp., with the Alamo, National and CarTemps USA brands.