AutoNation’s growing portfolio of services is driving record results.
The automotive retailer said in a Friday (Feb. 17) earnings release that it earned record revenue in the fourth quarter and full year 2022 in part by expanding the services, finance and transportation it offers customers.
“We’ve made three key acquisitions that are focused on expanding and extending the reach of the AutoNation brand,” AutoNation CEO Michael Manley said Friday during the company’s quarterly earnings call.
The company’s expansion into these additional services comes at a time when new-car prices are spiking, leading already-hesitant customers to grow even more wary about making major purchases, and the used-car market facing hard times as well.
The most recent of AutoNation’s moves was the January completion of the acquisition of RepairSmith, a firm that performs automotive repairs and maintenance at the customer’s home or office.
Manley said during the call that this acquisition will expand AutoNation’s range of services and create after-sales business opportunities by enabling it to reach both its existing customers and consumers who purchased their vehicle elsewhere.
“RepairSmith also gives our AutoNation USA brand a unique service proposition and customer experience offering a range of after-sales products and services that our standalone used car sales competitors, frankly, just do not have,” Manley said.
In another acquisition, AutoNation added auto lender CIG Financial in fall 2022. With this, the firm created an in-house customer financial services solution called AutoNation Finance that Manley said will enable it to offer customers greater flexibility in vehicle procurement.
“Obviously, as this business grows, we will have an increasing recurring revenue stream,” Manley said during the call.
In a third move that Manley said extended the reach of the brand, AutoNation enhanced its digital retailing experience by improving its digital storefront and buying a minority ownership stake in digital marketplace TrueCar in November.
The company said at the time that this will enhance its customers’ digital buying experience, provide a transportation purchasing process that is easy and transparent, and enable closer cooperation between AutoNation and TrueCar.
“All of these activities are targeted and focused to create a stronger, more competitive business that is less exposed to the cyclical nature of the automotive industry and places us in more control of our destiny,” Manley said during the call.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More