AutoNation

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AutoNation, Inc.
Type Public
Traded as NYSEAN
S&P 500 Component
Industry Auto Retailer
Founded 1981 (as Republic)
April 6, 1999 (as Maroone)
Early 2013 (as Auto Nation)
Headquarters Fort Lauderdale, Florida, U.S.
Revenue
  • Increase US$ 17,517.6 million (2013) [1]
  • Increase US$ 15,667.5 million (2012) [1]
Operating income
  • Increase US$ 740.3 million (2013) [1]
  • Increase US$ 645.3 million (2012) [1]
Net income
  • Increase US$ 374.9 million (2013) [1]
  • Increase US$ 316.4 million (2012) [1]
Total assets
  • Increase US$ 7,914.1 million (2013) [2]
  • Increase US$ 7,203.0 million (2012) [1]
>
Total equity
  • Increase US$ 2,061.7 million (2013) [2]
  • Decrease US$ 1,688.5 million (2012) [1]
Website www.autonation.com
AutoNation headquarters building in Fort Lauderdale, Florida

AutoNation (Formally Republic Industries) is the largest automotive retailer in the United States and is the leading provider of new and pre-owned vehicles.[3] It was founded in 1996 by entrepreneur H. Wayne Huizenga.[4] Headquartered in Fort Lauderdale, Florida, AutoNation owns and operates 274 dealerships across the USA. 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.

Company operations[edit]

AutoNation has 274 local stores across the USA, and has approximately 23,000 employees. It sells 33 different manufacturer brands nationwide across 15 different states and outsells every other automotive retailer in the U.S. It is ranked #162 in the 2014 Fortune 500.[5] The company has a significant internet presence, offering its entire inventory for online searching.[6]

Total company revenue is as follows: 55% new vehicles 24% used vehicles 16% parts and service 4% financing and insurance 1% other

"AutoNation" National Brand[edit]

Prior to 2013 AutoNation maintained localized brands for operations in regional groups which carried the following names. In the Southeast United States - Maroone, Courtesy, AutoWay, and Mike Shad. In the Central and Midwest states - Team, Fox, Leesburg, Mullinax, Dobbs, Laurel, and GO. In Texas - Bankston and Champion... and in the West and Northwest - AppleWay, AutoWest, Desert and Power.

Beginning in 2013, and after an extensive rebranding marketing campaign, AutoNation’s 263 domestic and import franchises and 232 stores were marketed under the unified "AutoNation" brand name from coast to coast.

History[edit]

In 1981, Republic Industries was created, specializing in waste disposal. H. Wayne Huizenga became Chairman of the Board in 1995.[7] Republic began its used auto sales initiative with the purchase of Auto Nation USA in 1997,[8] followed by Car Choice Inc.[9] Republic began opening AutoNation used megastores. CarMax brought a lawsuit against Republic for copyright and trademark infringement. Republic's sales for 1995 were $5.2 billion.[7]

In 1996, Republic began purchasing new car dealerships and offering long-term contracts to owners who joined the automotive division management team. Some dealers began seeking out Republic to sell their dealerships because of the long-term contracts. In 1996, Republic built twelve AutoNation locations.[7]

In 1996, Alamo Rent A Car was acquired.[9]

In 1997, Republic continued acquisitions in the car rental business with the purchase of National Car Rental, Spirit Rent-A-Car, Value Rent-A-Car, Snappy Car Rental, and EuroDollar Rent A Car. Huizenga had Republic start consolidating operations between new and used cars and its rental companies into one operation. Acquiring six Saturn dealerships in Arizona and Florida, Republic sold the dealerships to Saturn in 1997 because they did not generate enough sales despite being a successful brand.[7] Maroone Automotive Group of Buffalo, NY and Florida was acquired in 1997 for $200 million in Republic Stock.[8]

A 2-for-1 split in the company stock was completed in 1996.

In an attempt to expand the company's electronic security division, the company offered to purchase ADT but the acquisition was called off.[7] In October 1997, Republic sold off its electronic security division after failing to expand it with the attempted-purchase of ADT.

Republic Industries offered in July 1998 an IPO of its original core waste disposal business as Republic Services. From this sale of 36% of Republic Services, Republic Industries netted $1.4 billion. While CarMax had received a $50 million jury award in its lawsuit, it was overturned during an appeal in 1998.[7] Drivers' Mart, a competitor, was purchased.[10]

The remaining 64% of Republic Services were spun off to Republic Industries shareholders in 1999.[7] The company's first Chief Executive Officer (CEO) was Steve Berrard, who resigned from the company in July 1999.[11] Mike Jackson, CEO, moved to spin off the car rental business as ANC Rental. AutoNation USA used car megastores, which lost $25 million the quarter before, were all closed down. Plans to brand all auto dealers as AutoNation are scrapped and a regional brand focus is instituted.[8]

In January 2003, Jackson is named chairman of the board replacing Huizenga.[8] On October 24, 2005, the AutoNation building in downtown Fort Lauderdale suffered significant damage due to Hurricane Wilma.[12] The company has since transferred to another nearby building.

In Feb 2006, AutoNation Inc announced to restate its cash flow statements for two years, in response to discussions with the staff of SEC. The previously issued consolidated financial statements for 2003 and 2004 should no longer be relied upon.[13]

In 2006, Mike Jackson, CEO of AutoNation announced[14] that his company would be reducing orders from General Motors, Ford and Chrysler in 2007. Jackson made the statement that the company will instead focus on selling BMW, Mercedes and Lexus vehicles due to anticipation of further market share loss by US automakers resulting in high dealer inventories.[citation needed]

In 2009, AutoNation announced the AutoNation Payment Protection program, promising that the dealership will buy back any car at market value, should the owner lose their job.[citation needed]

In 2011, AutoNation was the first auto retailer in the U.S. to sell a total of 8 Million vehicles.[citation needed]

In January 2013, AutoNation announced that it would completely replace localized brand names of its car retail operations with its own name, starting with car retail stores that are identified with the "Maroone" name in Florida. This re-branding across the United States was supported and approved by the major automotive manufacturers, including GM, Ford, Chrysler, Nissan, Toyota, Honda, VW and Hyundai. It involved a total of 210 franchises operating under previously assigned local group names.[15]

In May 2013, AutoNation partnered with "IndyCar" Series Champion Ryan Hunter-Reay to support his "Racing for Cancer" charity. This charity serves as a key component of the AutoNation charity program. The charity was founded as a 501(c)(3) charitable organization following the 2009 passing of the founders mother due to colon cancer.

In August 2013, AutoNation announced the sale of its 9 Millionth vehicle. A record achievement for the industry. [16]

Notes[edit]

  1. ^ a b c d e f g h "AUTONATION, INC. 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. February 13, 2014. 
  2. ^ a b "AUTONATION, INC. 2014 Q1 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. April 18, 2014. 
  3. ^ White, Joseph B., "One Billion Cars", The Wall Street Journal, pp. R1, April 17, 2006.
  4. ^ Bradsher, Keith, "Republic's Huizenga Wants to Dominate the Market", The New York Times, pp. D1, March 6, 1997.
  5. ^ Fortune 500: AutoNation, Fortune, accessed June 2014.
  6. ^ Tucci, Christopher L.; Afuah, Allan (2001). Internet Business Models and Strategies: Text and Cases. McGraw-Hill. p. 270. ISBN 0-07-239724-1. 
  7. ^ a b c d e f g "Republic Industries, Inc. Company History". Company Profiles. fundinguniverse.com. Retrieved 2009-11-03. 
  8. ^ a b c d Broder-Singer, Rochelle (March 2003). "Over drive: AutoNation's founders set out to revolutionize the automotive retailing industry by sweeping up dealerships and creating a national brand. Instead, the industry changed AutoNation. In the end, it took two "car guys"— CEO/Chairman Mike Jackson and President/COO Mike Maroone to rev up profits at the largest dealership group in the country (Cover Story)". South Florida CEO. Gale Group. pp. 1–8. Retrieved 2013-07-17. 
  9. ^ a b Bagli, Charles V. (November 8, 1996). "In Alamo Deal, Republic Puts More Money On Used Cars". The New York Times (New York, NY: New York Times Company). p. D1. Retrieved 2009-11-04. 
  10. ^ Evarts, Eric C. (2002-03-18). "Dealers stay in driver's seat". Christian Science Monitor (Christian Science Monitor). Retrieved 2009-11-04. 
  11. ^ "Autonation Chief Executive Agrees to Step Down", The New York Times, July 1, 1999.
  12. ^ Hoag, Christina, and Danner, Patrick, "Creatively coping with chaos: South Florida's hurricane-worn companies are making do to keep going despite a lack of offices", The Miami Herald, October 27, 2005.
  13. ^ "AutoNation to restate 2 years of cash flows". 
  14. ^ Chakvorti, Jui, AutoNation slowed '07 model orders: CEO, Reuters, September 12th, 2006.
  15. ^ Hemlock, Doreen, AutoNation to stamp dealerships with its brand name, Sun Sentinel, January 31st, 2013.
  16. ^ "Brinkman, Paul " South Florida Business Journal

Further reading[edit]

External links[edit]