AutoNation CEO Says U.S. Consumer Is in Good Shape

The transcript discusses AutoNation's record performance and positive demand outlook in the US, despite challenges posed by the coronavirus. It highlights the shift from new to used vehicles due to rising prices and cheaper financing. The impact of the coronavirus on the global supply chain is examined, with a focus on diversification and resilience. The discussion also covers inventory management strategies and the potential economic impact of the pandemic on the auto industry.

What was the percentage increase in AutoNation's earnings per share for the quarter?

• 30%

• 15%

• 71%

• 50%

What has been the trend in vehicle prices over the last five years?

• Increase by $5000

• Decrease by $5000

• Fluctuated significantly

• No change

Why are consumers shifting towards used vehicles?

• More variety in used vehicles

• Increased new vehicle prices

• Better financing options

• Improved technology in used vehicles

How has the automotive industry diversified its supply chain?

• By increasing local production

• By relying on a single supplier

• By learning from past events like the tsunami in Japan

• By reducing the number of suppliers

What is a potential challenge when switching suppliers quickly?

• Increased production speed

• Immediate cost reduction

• Pricing pressures and time constraints

• Improved product quality

What is the expected impact on the US economy if the coronavirus is contained in a reasonable time?

• Rapid increase in new vehicle prices

• Minimal impact on economic growth

• Significant economic downturn

• Complete halt in automotive sales

How have rising new car prices affected the used car market?

• No impact on used car sales

• Decreased demand for used cars

• Increased demand for used cars

• Shift towards leasing new cars