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AutoNation
Inc.
A -1.01%
CEO Mike Jackson, who has been outspoken and openly challenged by automakers, will be stepping down in 2019 after leading the largest chain of US dealers for nearly a year. two decades.
Jackson, 69, will remain as president and AutoNation's board will search for a new CEO.
A native of New Jersey who started repairing cars at a Mercedes dealership, Mr. Jackson is known in the industry for his franchise. A frequent commentator on CNBC, his outspokenness has served as a contrast to most automotive executives, who tend to avoid controversy.
As CEO, Mr. Jackson has reduced his operations, added more imported and luxury brands and pushed AutoNation into the digital age. The company's share price has more than quadrupled since taking office in October 1999. Shares closed at $ 43.09 on Tuesday, giving AutoNation a market capitalization of nearly $ 4 billion.
"I am very proud of what we have built here," Jackson said in an interview. "Next year, I'm 70 years old and with 20 years as CEO, it's a good time to pass the baton to the next CEO. I kick myself up.
Its transition comes as US auto sales begin to decline after a seven-year period of growth that has allowed car makers and dealers to make a profit.
With more than 325 branches across the country, AutoNation is expanding beyond traditional new car sales to reduce its reliance on automakers.
In 2017, the distribution chain opened its first standalone auto-center, AutoNation USA, aimed at building a chain of pre-equipped stores to compete with
CarMax
Inc.
The company also launched a line of auto parts, auto auction sales and autoNation collision centers.
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Jackson, who grew up in a large Irish-American family, quickly rose through the ranks of auto distribution, eventually acquiring his own Mercedes dealership and joining the German luxury brand to lead sales in the United States. US operations of Mercedes.
AutoNation hired Jackson in 1999 to boost the company's stock price and strengthen its credibility with Wall Street. Over the next few years, it sold underperforming dealers, closed the retailer's used car store chain, and expanded its offer of primarily domestic brands to include imports such as Toyota,
BMW
and Mercedes. Mr. Jackson was one of the first proponents of the distribution channel's presence in the digital market, as more and more shoppers migrated to the Internet to do their shopping for cars.
Over the years, Mr. Jackson has earned a reputation for expressing himself, even though his views were not always popular with his colleagues.
He was criticized in his criticism of President Trump, citing his rise to the White House as a reason he left the Republican Party. Mr. Jackson has also ruled in favor of a rise in gasoline prices, saying that they are needed to spur innovation in technologies that allow people to talk about gasoline. save fuel, such as hybrid and electric cars.
In the years leading up to the 2008 economic crisis, Jackson criticized American automakers for over-inventing their inventory and used significant discounts to move cars from dealers, a practice that erodes profits and damages profits. image of a brand. More recently, he criticized automakers for instigating a price war that has hurt distribution companies.
Mr. Jackson stated that it was his duty to speak on behalf of consumers and dealers who otherwise would not have a voice in the auto industry. This is a role that he intends to retain as executive chairman.
"It comes from my father, who said" Mike, always doing the right thing, "said Mr. Jackson." If you always do the right thing, in the end, they will respect you and respect is more important than comparability. "
Write to Adrienne Roberts at [email protected]
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