AutoNation CEO Mike Jackson discusses Q4 results, digital retailing, the used-car market, and EVs
AutoNation is coming off a record-setting quarter at the end of 2020. One of the nation’s largest automotive retailers made a strong rebound after the COVID-19 pandemic affected company operations across the U.S. Today on CBT News, Mike Jackson, CEO of AutoNation, joins the show to discuss AutoNation’s recent success, as well as other pressing issues facing the automotive industry. Watch the full segment here.
Despite the challenges of the pandemic, dealer profits surged to record highs. According to the National Automobile Dealers Association, the average U.S. dealership recorded a net pre-tax profit of $2.1 million in 2020, surging 48% year-over-year. The 2020 results blew past the previous record of $1.5 million set in 2015. While new and used-vehicle volume and revenue dropped in 2020, individual profitability rose significantly. The average per-vehicle gross profit rose by 22% for new vehicles and 13% for used.
Carvana said it plans to add 10 new inspection and reconditioning centers over the next two years. The online used-vehicle retailer recently said that demand continues to outpace its vehicle-preparation abilities. The new prep centers will allow the company to double its annual reconditioning capacity to more than 1.25 million vehicles. Carvana currently has 11 reconditioning centers, four of which have been added in the last year.
General Motors is beginning to see its EV plans take shape through its new Chevy Bolt models. The new hatchback and crossover models, both have a starting price under $34,000, setting the stage for GM’s plan to launch an entire lineup of affordable EVs. Many consumers have been skeptical about the automaker’s affordability strategy after learning that the price tag of the hummer EV would eclipse $100,000. GM says it is currently building scale to reduce the cost of its next generation of EVs with new battery systems and platforms.
U.S. auto safety regulators have opened a probe into 1.9 million Toyota Rav4 vehicles for fire risks. The national highway traffic and safety administration said the preliminary evaluation into 2013-2018 Rav4 vehicles comes after 11 reports of fires. According to the agency, half of the fire incidents took place while the vehicle was in motion.
News & Opinion:
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