AutoNation
Encyclopedia
AutoNation, the largest auto retailer in the USA, was founded in 1996 by entrepreneur H. Wayne Huizenga
, also founder of Blockbuster
and Waste Management
. The company is headquartered in Fort Lauderdale
, Florida
. 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.
Total company revenue is as follows:
These include the following:
became Chairman of the Board in 1995. Republic got into used auto sales with the purchase of Auto Nation USA in 1997, followed by Car Choice Inc. Republic began opening AutoNation used megastores. CarMax
brought a lawsuit against Republic for copyright and trademark infringement. Republic's sales for 1995 was $5.2 billion.
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.
In 1996, Alamo Rent A Car
was acquired.
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. Maroone Automotive Group of Buffalo, NY and Florida was acquired in 1997 for $200 million in Republic Stock.
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, Ltd.
but the acquisition was called off. 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. Drivers' Mart, a competitor, was purchased.
The remaining 64% of Republic Services were spun off to Republic Industries shareholders in 1999. The company's first Chief Executive Officer (CEO) was Steve Berrard, who resigned from the company in July 1999. 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.
In January 2003, Jackson is named chairman of the board replacing Huizenga. On October 24, 2005, the AutoNation building
in downtown Fort Lauderdale suffered significant damage due to Hurricane Wilma
. The company has since transferred to another nearby building.
In 2006, Mike Jackson, CEO of AutoNation announced 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.
http://corp.autonation.com/investors/management.asp
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.http://blogs.edmunds.com/strategies/2009/03/worried-about-losing-your-job-autonation-offers-payment-guarantee.html
Wayne Huizenga
Harry Wayne Huizenga is an American businessman who grew Blockbuster Video, Waste Management, Inc., and AutoNation into successful companies. He is the former owner of the National Football League's Miami Dolphins, the National Hockey League's Florida Panthers and the Major League Baseball's Miami...
, also founder of Blockbuster
Blockbuster (movie rental store)
Blockbuster LLC is an American-based provider of home video and video game rental services, originally through video rental shops , later adding DVD-by-mail, streaming video on demand, and kiosks. At its peak in 2009, Blockbuster had up to 60,000 employees. There are around 1700 Blockbuster...
and Waste Management
Waste Management, Inc
Waste Management, Inc. is a waste management, comprehensive waste, and environmental services company in North America. Founded in 1894, the company is headquartered in Suite 4000 at the First City Tower in Downtown Houston, Texas, in the United States....
. The company is headquartered in Fort Lauderdale
Fort Lauderdale, Florida
Fort Lauderdale is a city in the U.S. state of Florida, on the Atlantic coast. It is the county seat of Broward County. As of the 2010 census, the city had a population of 165,521. It is a principal city of the South Florida metropolitan area, which was home to 5,564,635 people at the 2010...
, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
. The current Chairman and CEO is Mike Jackson
Mike Jackson (auto)
Michael J. Jackson is Chairman and Chief Executive Officer of AutoNation, Inc.Mike Jackson is widely regarded as one of our generation’s most influential and effective leaders in the automotive industry...
, former CEO of Mercedes Benz North America. The current President and Chief Operation Officer is Mike Maroone
Mike Maroone
Michael E. Maroone serves as President, Chief Operating Officer and Board Member of AutoNation, Inc., the largest automotive retailer in the United States....
; previously of Maroone Automotive Group of South Florida.
Company operations
AutoNation has 252 dealerships across the USA, and has approximately 18,000 employees. It sells 37 different manufacturer brands nationwide and outsells every other automotive retailer in the U.S. It is ranked #212 in the 2010 Fortune 500. The company has a significant internet presence, offering its entire inventory for online searching.Total company revenue is as follows:
- 59% new vehicles
- 23% used vehicles
- 14% parts and service
- 3% financing and insurance
Brands
Instead of supporting a national mark, AutoNation has developed a unique brand name for its dealerships in each market.These include the following:
- Appleway -- SpokaneSpokaneSpokane is a city in the U.S. state of Washington.Spokane may also refer to:*Spokane *Spokane River*Spokane, Missouri*Spokane Valley, Washington*Spokane County, Washington*Spokane-Coeur d'Alene-Paloos War*Spokane * USS Spokane...
- Autoway -- Tampa BayTampa BayTampa Bay is a large natural harbor and estuary along the Gulf of Mexico on the west central coast of Florida, comprising Hillsborough Bay, Old Tampa Bay, Middle Tampa Bay, and Lower Tampa Bay."Tampa Bay" is not the name of any municipality...
with the exception of Lexus of Tampa Bay, Lexus of Clearwater, and Mercedes-Benz of Sarasota - Autowest -- SacramentoSacramentoSacramento is the capital of the state of California, in the United States of America.Sacramento may also refer to:- United States :*Sacramento County, California*Sacramento, Kentucky*Sacramento – San Joaquin River Delta...
, San Francisco Bay AreaSan Francisco Bay AreaThe San Francisco Bay Area, commonly known as the Bay Area, is a populated region that surrounds the San Francisco and San Pablo estuaries in Northern California. The region encompasses metropolitan areas of San Francisco, Oakland, and San Jose, along with smaller urban and rural areas... - Bankston -- TexasTexasTexas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
- Champion -- AustinAustin, TexasAustin is the capital city of the U.S. state of :Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in...
, Houston, Corpus ChristiCorpus Christi, TexasCorpus Christi is a coastal city in the South Texas region of the U.S. state of Texas. The county seat of Nueces County, it also extends into Aransas, Kleberg, and San Patricio counties. The MSA population in 2008 was 416,376. The population was 305,215 at the 2010 census making it the... - Cook-Whitehead -- Panama City, FloridaPanama City, Florida-Personal income:The median income for a household in the city was $31,572, and the median income for a family was $40,890. Males had a median income of $30,401 versus $21,431 for females. The per capita income for the city was $17,830...
- Courtesy -- Orlando
- Desert -- Las VegasLas Vegas metropolitan areaThe Las Vegas Valley is the heart of the Las Vegas-Paradise, NV MSA also known as the Las Vegas–Paradise–Henderson MSA which includes all of Clark County, Nevada, and is a metropolitan area in the southern part of the U.S. state of Nevada. The Valley is defined by the Las Vegas Valley landform, a ...
- Dobbs -- Memphis
- Fox -- BaltimoreBaltimoreBaltimore is the largest independent city in the United States and the largest city and cultural center of the US state of Maryland. The city is located in central Maryland along the tidal portion of the Patapsco River, an arm of the Chesapeake Bay. Baltimore is sometimes referred to as Baltimore...
- Go -- Denver (formerly "John ElwayJohn ElwayJohn Albert Elway, Jr. is a former American football quarterback and currently is the executive vice president of football operations for the Denver Broncos of the National Football League . He played college football at Stanford and his entire professional career with the Denver Broncos...
" until 12/26/2006.) - Maroone -- South Florida with the exception of Lexus of Palm Beach and two Mercedes-Benz locations
- Mike Shad -- Jacksonville
- Mullinax -- Cleveland (1996)
- Power -- Southern CaliforniaSouthern CaliforniaSouthern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
, Phoenix - Team -- Atlanta
- Treadwell -- Mobile, AlabamaMobile, AlabamaMobile is the third most populous city in the Southern US state of Alabama and is the county seat of Mobile County. It is located on the Mobile River and the central Gulf Coast of the United States. The population within the city limits was 195,111 during the 2010 census. It is the largest...
- West -- NorthwestPacific NorthwestThe Pacific Northwest is a region in northwestern North America, bounded by the Pacific Ocean to the west and, loosely, by the Rocky Mountains on the east. Definitions of the region vary and there is no commonly agreed upon boundary, even among Pacific Northwesterners. A common concept of the...
E-Vehicles Program
E-Vehicles Program, in partnership with Edmunds.com, identifies fuel-efficient vehicles, with 8.40 L/100km (28 miles per gallon) or deliver 10% better fuel efficiency than the average for their vehicle class.History
AutoNation was created in 1981 as Republic Industries, Inc., a company specializing in waste disposal. H. Wayne HuizengaWayne Huizenga
Harry Wayne Huizenga is an American businessman who grew Blockbuster Video, Waste Management, Inc., and AutoNation into successful companies. He is the former owner of the National Football League's Miami Dolphins, the National Hockey League's Florida Panthers and the Major League Baseball's Miami...
became Chairman of the Board in 1995. Republic got into used auto sales with the purchase of Auto Nation USA in 1997, followed by Car Choice Inc. Republic began opening AutoNation used megastores. CarMax
CarMax
CarMax is the United States' largest used-car retailer and a Fortune 500 company. The first CarMax used car auto superstore was opened in September 1993. In the fiscal year ending February 28, 2009, more than 350,000 cars were sold; as of August 2010 the company has 103 locations.- Concept :The...
brought a lawsuit against Republic for copyright and trademark infringement. Republic's sales for 1995 was $5.2 billion.
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.
In 1996, Alamo Rent A Car
Alamo Rent A Car
Alamo Rent a Car is the third-largest car rental agency in the United States. Based in Clayton, Missouri, it has branches across the United States, Canada, Mexico, Central America, South America, parts of Africa, Europe, and Australia, and various Caribbean islands...
was acquired.
In 1997, Republic continued acquisitions in the car rental business with the purchase of National Car Rental
National Car Rental
National Car Rental is a rental car company based in Clayton, Missouri. National was founded by 24 independent rental car agents on August 27, 1947...
, 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. Maroone Automotive Group of Buffalo, NY and Florida was acquired in 1997 for $200 million in Republic Stock.
A 2-for-1 split
Stock split
A stock split or stock divide increases the number of shares in a public company. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur. Options and warrants are included....
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, Ltd.
ADT
ADT, as an acronym, may refer to:*Abstract data type, a computer programming term*Alternating decision tree, another term in computer programming*Algebraic data type, a term from functional programming...
but the acquisition was called off. 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
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
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. Drivers' Mart, a competitor, was purchased.
The remaining 64% of Republic Services were spun off to Republic Industries shareholders in 1999. The company's first Chief Executive Officer (CEO) was Steve Berrard, who resigned from the company in July 1999. Mike Jackson
Mike Jackson (auto)
Michael J. Jackson is Chairman and Chief Executive Officer of AutoNation, Inc.Mike Jackson is widely regarded as one of our generation’s most influential and effective leaders in the automotive industry...
, CEO, moved to spin off the car rental business as ANC Rental
ANC Rental
ANC Rental Corporation was a Delaware corporation, created in October 1999 by AutoNation, Inc. as a wholly owned subsidiary.The company owned Alamo Rent A Car, National Car Rental, CarTemps and was a 2000 AutoNation spin-off to its shareholders, made public on July 3, 2000...
. 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.
In January 2003, Jackson is named chairman of the board replacing Huizenga. On October 24, 2005, the AutoNation building
110 Tower
110 Tower, formally known as AutoNation Tower, is a Class A office building in downtown Fort Lauderdale, Florida. The building was one of the first modern highrise office buildings constructed in the city, and became part of the city's sprawling skyline. The building has a baltic-brown granite...
in downtown Fort Lauderdale suffered significant damage due to Hurricane Wilma
Hurricane Wilma
Hurricane Wilma was the most intense tropical cyclone ever recorded in the Atlantic basin. Wilma was the twenty-second storm , thirteenth hurricane, sixth major hurricane, and fourth Category 5 hurricane of the record-breaking 2005 season...
. The company has since transferred to another nearby building.
In 2006, Mike Jackson, CEO of AutoNation announced that his company would be reducing orders from General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
, Ford and Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
in 2007. Jackson made the statement that the company will instead focus on selling BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
, Mercedes
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
and Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...
vehicles due to anticipation of further market share loss by US automakers resulting in high dealer inventories.
http://corp.autonation.com/investors/management.asp
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.http://blogs.edmunds.com/strategies/2009/03/worried-about-losing-your-job-autonation-offers-payment-guarantee.html