Despite an agonizingly slow economic recovery, the countrys largest auto retailer, Fort Lauderdale-based AutoNation, is thriving again as demand for vehicles expands.
The company, one of Floridas largest, is posting increasingly strong profits and revenues. Just last week, in a sign of confidence, Autonation announced a major acquisition buying six large auto stores in Texas that will add about 700 employees to its national payroll of 19,400.
In announcing the deal Tuesday, which is expected to provide AutoNation with $575 million in additional revenues next year, the companys CEO and chairman, Mike Jackson, expressed optimism about the prospects for continued growth in vehicle sales.
You want to know what Im thinking, look at what I do, Jackson told viewers on CNBCs Squawk Box program.
No information was released on the cost of the transactions, but in recent years auto dealerships sometimes sold for three to five times revenue, which would represent a significant investment for the company.