Thursday, Jul. 23, 2020, 11:23 AM
In late October 2016, AutoNation first announced its intentions to build a network of standalone pre-owned vehicle sales and service centers called AutoNation USA. The company first opened locations in places such as Phoenix, Las Vegas and Katy, Texas.
On Thursday morning as part of releasing its second-quarter financial statement, AutoNation shared plans for expansion of AutoNation USA; intentions to build at least 20 additional stores during the next three years.
AutoNation said it will provide more details of the roll-out schedule during the third quarter.
“AutoNation is prioritizing its investment in capital expenditures towards opportunities with the greatest return potential,” the company said in a news release.
Nearly four years ago when AutoNation began this project, the company said it had identified 25 AutoNation USA potential sites in its existing markets. Then in late 2018, AutoNation indicated it would not build any new AutoNation USA locations in 2019 in order to “continue to evaluate our initial five stores,” according to Lance Iserman, who was chief operating officer at the time.
Now with used vehicles gaining more interest industry wide because of the coronavirus pandemic, AutoNation is making this move.
“The stores will allow the company to continue providing customers a peerless experience with its ‘One Price’ model and its customer-centric selling processes,” AutoNation said in Thursday’s news release.
“This expansion will also allow the company to leverage its brand, scale, ‘We’ll Buy Your Car’ sourcing initiative, and digital capabilities to capture a larger portion of the used-vehicle market,” the company went on to say.
Editor’s note: More details about AutoNation’s second-quarter performance and results from other dealer groups will be contained in future updates.