Analysis: How America’s Biggest Dealer Group is 'Future-Proofing' Itself
Jan. 19, 2018—AutoNation, America’s largest dealership chain, feels it may have found a solution to guarding against the auto industry’s sales decline.
As noted in a Forbes report, AutoNation chief executive Mike Jackson has been growing a stable of related, higher-margin businesses under his company’s umbrella.
AutoNation’s evolving business lineup now includes used-car stores like AutoNation USA, resale auctions (AutoNation Auto Auction), replacement parts (AutoNation Precision Parts) and repair shops like AutoNation Collision Centers. In 2018, new-car sales make up just approximately 18 percent of AutoNation’s overall revenues, Jackson told forbes.com.
“There’s no money in selling new vehicles,” Jackson said. “Thank God I have the scale and a strong brand.”
Jackson also recently forged a multiyear pact with Waymo (which falls under the Google umbrella), a leader in autonomous vehicle technology, to maintain and repair its fleet of self-driving cars.
The AutoNation executive said Waymo is “far ahead of everybody else as far as providing a consumer service.”