New AN thread:
It's nice to see a new AN thread just as I'm considering jumping in. Michael, I appreciate the heads up on the CC. I heard most of it and came away with mixed emotions. I strongly suggest everybody give it a listen.
The whole Global Odyssey mess was certainly painful for this quarter, but if they get their ducks in a row (and their customers back), it could prove quite lucrative in the future.
I also think AN's timing was a bit off in integrating Nissan into their L.A. mega-store franchise (though LA is certainly an import town). Nissan's troubles are well documented and I would have rather seen the new car trail blazed by either Ford or Daimler/Chrysler. It also demonstrates that, just maybe the public-owned retail mega-stores aren't quite as dynamic as Wayne had envisioned them to be.
I like the sale of RSG. Kills two birds with one stone. Gets a non-auto entity out of the way and pays down a great deal of debt.
Also on the plus side, the repurchase program continues to plug along, Alamo and the internet are going great guns and the stock has nowhere to go but up.
My main concern continues to be in the used cars sales area. While sales were up considerably (112%), most of this was accounted for through acquisitions. I'm still not comfortable with one-price selling, as many customers simply take that price to the competition and beat it easily. I must confess, I'm not altogether sure all AN stores follow this policy. It's fortunate that fixed operations, such as parts and service, take up the slack.
On balance, AN is the biggest game in the public ownership arena (a plus). Automotive News places their market share at 70%. They also hire some truly outstanding car people to run their various 'stores'. Lithia Motors (LAD) seems to have some plusses as well.
I'm sort of wed to the charts on this one. I'll be keeping a very close eye on next week's pricing action. |
