Chrysler, just like General Motors, is cutting down the numbers and AutoNation has announced that 7 of their dealers will be hit by the dealer closure. As part of the dealer consolidation plan filed by Chrysler today in its bankruptcy, approximately 789 Chrysler dealerships will be closed nationwide.

The AutoNation stores that will be closed by the consolidation plan represented only 1% of AutoNation’s 2008 operating income. AutoNation does not believe that any one-time charges that may be associated with these actions will be material to its continuing operations or debt covenants.

Commenting on the consolidation plan, Mike Jackson, Chairman and Chief Executive Officer, said, “We believe Chrysler’s consolidation plan is a difficult but positive step forward for Chrysler and the automotive retail industry. Dealer consolidation is a necessary measure in today’s automotive industry and will strengthen America’s dealer network and improve dealer profitability over the long term.”

Mr. Jackson commented further, “The consolidation plan is consistent with AutoNation’s long-term strategy that we implemented in 2000 to consolidate domestic dealerships and realign our brand mix more towards import and premium luxury franchises. With our financial and operational strength and diversified brand mix, we are well-positioned to succeed in the rapidly changing automotive retail landscape.”

(Source) Press

Tags: automotive industry, autonation, Bankruptcy, chief executive officer, Chrysler, chrysler dealerships, Closure, consolidation plan, debt covenants, franchises, General Motors, necessary measure, operating income, profitability, retail industry, retail landscape, term strategy, time charges

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General Motors will be closing down about 1,000 dealerships and though they have yet to be named, AutioNation has revealed that six of their dealerships will be affected by this unfortunate turn. Autonation today announced that General Motors notified AutoNation that six of its dealerships were identified for potential closing by GM.

The notification is part of GM’s communication today to approximately 1,100 dealers that GM does not expect to continue as GM dealerships past October 2010. The AutoNation stores potentially impacted by the consolidation plan represent 0% of AutoNation’s 2008 operating income. AutoNation does not believe that any one-time charges that may be associated with these actions will be material to its continuing operations or debt covenants.

Commenting on the consolidation plan, Mike Jackson, Chairman and Chief Executive Officer, said, “We believe GM’s consolidation plan is a difficult but positive step that will strengthen America’s dealer network and improve dealer profitability over the long term. The consolidation plan is consistent with AutoNation’s long-term strategy that we implemented in 2000 to consolidate domestic dealerships and realign our brand mix more towards import and premium luxury franchises. With our financial and operational strength and diversified brand mix, we are well-positioned to succeed in the rapidly changing automotive retail landscape.”

(Source) Press

Tags: autonation, axe, chief executive officer, consolidation plan, debt covenants, franchises, General Motors, GM, gm dealership, gm dealerships, operating income, profitability, retail landscape, term strategy, time charges

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AT&T will be investing in cleaner domestic vehicles as it is set to spend up to $565 million as part of a long-term strategy to deploy more than 15,000 alternative-fuel vehicles over the next 10 years. AT&T expects to spend an estimated $350 million to purchase about 8,000 Compressed Natural Gas (CNG) vehicles and approximately $215 million to begin replacing its passenger cars with alternative-fuel models.

AT&T’s investment represents the largest U.S. corporate commitment to CNG vehicles to date. The new deployments will bring AT&T’s alternative-fuel fleet to more than 15,000 vehicles by 2019.

Over the next five years, AT&T will replace about 8,000 gasoline-powered service vehicles with vehicles powered by domestically available CNG. CNG vehicles are expected to emit approximately 25 percent less greenhouse gas emissions than those traditionally powered by gasoline.

(Source) Press

Tags: alternative fuel vehicles, cng vehicles, Compressed Natural Gas, corporate commitment, deployments, domestic vehicles, fuel models, gasoline, greenhouse gas emissions, passenger cars, service vehicles, term strategy

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