As the largest car dealer in the United States, AutoNation has its finger on the pulse of the car-and-truck buying public. The Fort Lauderdale company, which operates under the AutoWay brand name in the Tampa Bay area, on Thursday said third-quarter earnings fell 15 percent as this year's hurricanes forced the company to close car dealerships in Florida, sending revenue down slightly. St. Petersburg Times business columnist Robert Trigaux spoke with AutoNation president Mike Maroone to see what's cooking with the economy and the new look of the 2005 models. Here are some excerpts:
Is the economy getting stronger?
The retail environment over the last two quarters has been more difficult. That was magnified in Florida and the Southeast with four hurricanes that clearly impacted our business. We are now starting to see more shoppers and feel an injection into the economy from (hurricane-related) insurance checks. Nationwide, it is a cautious market.
What are the hottest new products to hit the market?
One is clearly the new Ford Mustang. The demand is incredible. It has both a retro and a forward look. GM's new Corvette is hot. And the new Cobalt is replacing the high-volume Chevy Cavalier. The blandness in design that we saw a few years ago is gone. When you look at the new models, you will say that you love them or hate them. That's exciting for our business.
You must get your pick of the litter. What do you drive?
I drive a Nissan Murano or a Mercedes S55. At home I also have a Jeep Wrangler and I keep a Chevy Tahoe at a home in Colorado.
Are high gas prices influencing buyers?
We are seeing more hybrid (combined electric and gas motor) vehicles that, frankly, in the past did not get much acceptance. Toyota and Honda have hybrids with superior fuel efficiency. The new Ford Escape is a hybrid but will be in short supply. Where we do see a big impact from gas prices is in used cars. The prices of used vehicles that are not fuel efficient have dropped.
What if gas prices stay high?
It could have an interesting long-term impact. For now, a lot of people feel the $50-a-barrel (oil) cost is not sustainable, and gas prices have not driven them away from full-size pickups.
Has AutoNation expanded into any new metro markets lately?
No. We are adding dealerships in existing markets. We are especially big in Florida, Texas and California.
Among brands, where is the strongest growth?
We see continued growth in luxury brands like BMW and Lexus. They are introducing more affordable products but enjoy the halo of strong brands.
