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(This story of January 7 corrects the title to clarify that four executives leave the company, not its four senior executives.)
(Reuters) – AutoNation Inc. announced Monday that four executives, including the chief operating officer, would leave the company as it restructured to cut costs and the automotive retail sector would be difficult. this year.
The leading US auto retailer is consolidating its regional structure from three to two regions and anticipates that the restructuring will save about $ 50 million a year, he added.
AutoNation has announced that Operations Manager Lance Iserman and Chief Technology Officer Tom Conophy will leave immediately, while his Human Resources Manager, Dennis Berger, will leave at the end of the month.
AutoNation, based in Fort Lauderdale, Florida, named the company's veteran, James Bender, executive vice president of sales.
Donna Parlapiano, executive vice president of the franchise network, mergers and acquisitions and corporate real estate, also decided to retire Jan. 3.
The restructuring comes as badysts predict a decline in vehicle sales in the United States this year. New car sales in the United States are expected to decline as rising interest rates and rising prices could cause customers to delay car purchase plans, the National Automobile Dealers Association announced last month.
Recently, the company launched a used car subscription service from the auto-leasing company, through its network of more than 300 US dealers.
In October, CEO Mike Jackson told Reuters that the company plans to reduce its investment after a "brand extension investment period" in higher-margin service and in the use of motor vehicles to offset the contraction of profits from the sale of new vehicles.
AutoNation did not immediately respond to a question about any job cuts due to restructuring.
(Report by Mekhla Raina in Bengaluru, edited by Gopakumar Warrier)
Copyright 2019 Thomson Reuters.
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