AutoNation Inc. (AN) recorded a 12% year-over-year increase in sales to 33,069 vehicles in Dec 2014. The growth was attributable to strong sales recorded at all segments, with the Premium Luxury segment growing the most. On a same-store basis, retail new vehicle sales went up 10%.
Sales in the Domestic segment rose 11% to 9,497 vehicles in December. This segment comprises retail automotive franchises that sell vehicles manufactured by Ford Motor Co. (F), Chrysler and others.
Sales in the Import segment increased 6% to 14,721 vehicles. This segment covers retail automotive franchises that sell vehicles manufactured by Toyota Motor Corporation (TM), Honda Motor Co., Ltd. (HMC) and others.
Sales in the Premium Luxury segment escalated 23% to 8,851 vehicles during the month. This segment consists of retail automotive franchises that sell vehicles manufactured by Mercedes Benz, BMW, Lexus and others.
AutoNation had recorded an 8% increase in new vehicle sales to 24,844 units in October and a 6% rise to 27,055 units in November. With this, the company has registered nearly 9% year-over-year rise in new vehicle sales to 84,968 vehicles in the fourth quarter of 2014. Domestic segment sales improved 9% to 24,991 units, Import segment sales went up 8% to 39,556 vehicles and Premium Luxury segment sales climbed 12% to 20,421 units in the quarter.
AutoNation witnessed an 8% improvement in new vehicle sales to 320,804 vehicles in 2014. Sales in the Domestic segment went up 6% to 97,656 vehicles, Import segment sales rose 8% to 157,096 units and Premium Luxury segment sales climbed 13% to 66,052 units in the year.
U.S. Auto Sales
Rising U.S. auto sales are contributing to AutoNation’s sales growth. Attractive year-end deals, an improving macroeconomic scenario and falling fuel prices boosted U.S. light-vehicle sales 11% year over year to 1.5 million units in Dec 2014.
U.S. light-vehicle sales increased 6% year over year to 16.53 million units in 2014. The strong results were driven by record high sales by 13 brands. Pickup trucks, utility vehicles and luxury cars recorded improved sales, thus benefiting automakers.
Based in Fort Lauderdale, FL, AutoNation is the largest automotive retailer in the U.S. The company owns and operates about 281 new vehicle franchises that sell 34 brands located in major metropolitan markets across 15 states. AutoNation currently sports a Zacks Rank #1 (Strong Buy).
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