In a move to ease the burden of overstocking their car inventory, AutoNation has cut back on its new vehicle orders by 60 percent. AutoNation, one of the largest auto dealerships, is bracing for a tough year ahead although they have made some forecasts depending on the turn of the economy.
Mike Jackson, CEO of AutoNation Inc., predicted that automakers will sell 11 million new cars and trucks in the United States this year — but only if credit loosens. In the first quarter, Jackson said, he expects an annual sales rate equal to 10 million units.
As early as now, this is a good strategy. With a worsening economy, adjustments should be made by as early as possible. That is the best thing that most auto companies can do at the moment to weather the storm brought about by this economic crisis that started as early as the third quarter of 2008.
(Source) Automotive News
Tags: auto companies, auto dealerships, autonation, autonation inc, economic crisis, largest auto, vehicle inventory, worsening economy
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