AutoNation, Inc. AN reported that its new vehicle sales declined 6% year over year to 25,555 units in Nov 2015. On a same-store basis, retail new vehicle sales decreased 7% from the year-ago figure.
Segment Results
Retail new vehicle unit sales in AutoNation’s Domestic segment went down 4% to 7,696 vehicles. The segment comprises retail automotive franchises that sell vehicles manufactured by Ford Motor Co. F, Chrysler and other automakers.
Sales at AutoNation’s Import segment fell 8% year over year to 11,884 vehicles in Nov 2015. The segment covers retail automotive franchises that sell vehicles manufactured by Toyota Motor Corporation TM, Honda Motor Co., Ltd. HMC and others.
In the Premium Luxury segment, sales dropped 3% year over year to 5,975 vehicles in the month. This segment consists of retail automotive franchises which offer vehicles made by Mercedes Benz, BMW, Lexus and other carmakers.
Acquisition Update
AutoNation has also signed an agreement to acquire Renton Honda in the Seattle-Bellevue market in Washington. The company already operates 27 franchises in the state. The annual revenue from this store is expected to be $70 million. The acquisition is anticipated to be closed by the end of 2015.
U.S. Auto Sales
U.S. auto sales rose 1.2% year over year to 1.32 million units in Nov 2015. Sales volumes were driven by marketing promotions from automakers and rising demand for sport utility vehicles. Sales on a seasonally adjusted annualized rate (“SAAR”) basis surged to 18.19 million units in Nov 2015. This was the highest November SAAR to date.
AutoNation currently carries a Zacks Rank #3 (Hold).
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