AutoNation
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| AutoNation, Inc. | |
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| Type | Public (NYSE: AN) |
|---|---|
| Founded | 1996 (as Republic) April 6, 1999 (as AutoNation) |
| Headquarters | Fort Lauderdale, Florida, USA |
| Industry | Car dealership |
| Revenue | $19.4 Billion[1] |
AutoNation is a chain of auto dealerships founded by entrepreneur H. Wayne Huizinga,[2] also founder of Blockbuster and Waste Management.[3] The company, founded in 1996, is headquartered in Fort Lauderdale.
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[edit] Company operations
AutoNation, Inc. is the largest automotive retailer in the United States.[4] AutoNation has 272 dealerships nationwide, and employs approximately 27,000 employees. Autonation sells 37 different manufacturer brands nationwide. AutoNation outsells every other automotive retailer in the U.S. and is ranked #115 on the 2006 Fortune 500.[1] The company has a significant internet presence, offering its entire inventory for online searching.[5]
Total company revenue is as follows:
- 59% New Vehicles ($11.5 billion in 2005)
- 23% Used Vehicles ($4.4 billion in 2005)
- 14% Parts and Service ($2.2 billion in 2005)
- 3% Financing and Insurance ($615 million in 2005)
[edit] AutoNation 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 -- Spokane, Idaho
- Autoway -- Tampa Bay
- Bankston -- Texas
- Champion -- Austin, Houston
- Courtesy -- Orlando
- Desert -- Las Vegas
- Dobbs -- Memphis
- Fox -- Baltimore
- Go -- Denver (formerly "John Elway" until 12/26/2006.[6])
- Maroone -- South Florida
- Mike Shad -- Jacksonville
- Mullinax -- Cleveland
- Power -- Southern California, Phoenix
- Team -- Atlanta
- West -- Northwest
[edit] History
From its founding in 1996 until 1999, AutoNation operated a series of used car megastores under the AutoNation USA brand, designed in the image of rival CarMax. Competition and market forces drove the company to shutter its AutoNation USA stores and instead focus on conventional dealerships with unique brand names in each market.
The company was formerly known as Republic Industries, Inc.,[2] and changed its name to AutoNation in 1999. The company's first Chief Executive Officer was Steve Berrard, who resigned from the company in July 1999.[7]
In October 24, 2005, the AutoNation building in downtown Fort Lauderdale suffered significant damage due to Hurricane Wilma.[8]
In 2006 Mike Jackson, CEO of Autonation announced[9] 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.
[edit] Controversies
In 2007, an activist group named Stop! AutoNation sent individual dealerships letters threatening a boycott for alleged discrimination against customers and employees. In particular, its concerns included the following:
- That, in 1997, the company allegedly terminated[10] an employee for emailing management and fellow staff complaining about the company's response to a gay rights poster displayed in a fellow employee's cubicle.
- That, in 2005, the company permitted discrimination in the workplace as alleged by an EEOC lawsuit.[11]
[edit] Notes
- ^ a b Fortune 500: Autozone, CNN, April 17, 2006.
- ^ a b Bradsher, Keith, "Republic's Huizenga Wants to Dominate the Market", The New York Times, pp. D1, March 6, 1997.
- ^ Gallagher, Richard S. (2002). The Soul of an Organization: Understanding the Values that Drive Successful Corporate Cultures. Kaplan Business, pp. 113. ISBN 0-7931-5780-3.
- ^ White, Joseph B., "One Billion Cars", The Wall Street Journal, pp. R1, April 17, 2006.
- ^ Tucci, Christopher L.; and Afuah, Allan (2001). Internet Business Models and Strategies: Text and Cases. McGraw-Hill, pp. 270. ISBN 0-07-239724-1.
- ^ "AutoNation benches Elway's name," Denver Post, December 1, 2006,
- ^ "Autonation Chief Executive Agrees to Step Down", The New York Times, July 1, 1999.
- ^ 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.
- ^ Chakvorti, Jui, AutoNation slowed '07 model orders: CEO, Reuters, September 12th, 2006.
- ^ Schwartz, Harriet, Work can really be hell - Discrimination against gays, originally published in The Advocate, June 10th, 1997.
- ^ Joyce, Amy, The Bias Breakdown, The Washington Post, December 9th, 2005.
[edit] Further reading
- Flynn, Michael S. (March 2001). "The Economy, Competition, and the Retail Automotive Dealer" (PDF). Final Report. The University of Michigan Transportation Research Institute. Retrieved on 2006-11-28.
