Go Back   DealershipForum.com > Dealer Talk > Automotive Discussions

Notices

Automotive Discussions Car People talking about the Car Business This is the place where it happens

Reply
 
Thread Tools Display Modes
Old 02-08-2008, 12:29 PM   #1
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,861
Default AutoNation Conference Call - Reflections on the Industry

I had a chance to review the AutoNation Conference Call and wanted to share the following excerpts:
  • Management feels that the country is 24 months into a downward cycle that typically lasts 30 - 40 months. They do not forecast a recovery for the retail car market until the first half of 2009.
  • Gross Margin was compressed on both New and Used vehicles for the Quarter.
  • The wholesale auction was very soft in December and they chose to "retail out" of some of their used vehicles - this contributed to the margin compression.
  • They purchased two dealerships (Lincoln Mercury and Nissan) and disposed of three dealerships in the Fourth Quarter. They did not indicate the Franchise or location of the stores that they sold. (They sold a total of 14 stores in 2007)
  • California and Florida are the weakest areas but they continue to perform well in Texas.
  • The lower rates by the Federal Reserve will have a favorable impact on Flooring expenses and profitability.
When asked about their ability to acquire more dealerships at a discounted price, management responded that although the pool of sellers has increased, the price they are willing to accept for their dealerships has not dropped.

Concerning Texas, they remarked that Texas had already been through an economic downturn when Enron collapsed several years ago. The downturn lasted for about 30 months - just like their prediction for the U.S. Economy.

Lithia has their Conference Call later this month - it will be interesting to see how the two companies compare.
XDCX is offline   Reply With Quote
Old 02-08-2008, 02:53 PM   #2
SHACOS
Super Moderator
 
Join Date: Jan 2008
Posts: 838
Default

Texas is an amazing market. That being said, once the oil dries up, the vehicle market will be soon to follow. Right now, our most profitable Store is in Odessa, TX, where the oil drillers put 250,000 miles on their vehicles and purchase new vehicles every six months.
SHACOS is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Conference Call - 03/06/09 XDCX Sales 5 03-06-2009 11:26 AM
conference call ssdd Sales 63 02-07-2009 11:07 PM
Conference Call - 01/16/09 XDCX Sales 5 01-16-2009 06:54 PM
Conference Call - 01/15/09 XDCX Sales 11 01-15-2009 01:27 PM
11-21-08 Conference Call XDCX Sales 15 12-01-2008 06:05 PM


All times are GMT -7. The time now is 04:35 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016