Comments on: AutoNation Reports $1.4b Q3 Loss

By: jerseydevil

jerseydevil — Fri, 07 Nov 2008 21:35:54 +0000

what of asbury auto? another mega dealer holding company. http://www.asburyauto.com/home.aspx

By: Bertel Schmitt

Bertel Schmitt — Fri, 07 Nov 2008 06:46:24 +0000

Two interesting items to watch:

One:

“Third quarter Domestic retail new vehicle unit sales declined 36%. In comparison, U.S. industry Domestic retail new vehicle unit sales declined 33% according to CNW Research.

Third quarter Import retail new vehicle unit sales declined 18%. In comparison, U.S. industry Import new vehicle retail unit sales declined 26% according to CNW Research.”

Looks like improts are still half alive at Autonation, compared with Domestics that took a much bigger hit (and from the October numbers trickling in, will be on the mat.) Autonation doesn’t seem to agree with CNW on the import numbers ….

Two:

The huge writeoff for goodwill is interesting. Goodwill is an accountant’s play-doh. Times are bad. These days, you are suprising nobody with an “Ouch!” to the common question “How’s business?” Expect everybody to round up all financial sceletons tucked away in the lateral file cabinets, and write them off. “Hey, times are bad!” We’ll have accrued losses for years to come. Tax revenue will go down the tubes. Maybe Obama will change his mind. Who wants that kinda job?

By: John Horner

John Horner — Fri, 07 Nov 2008 06:45:06 +0000

johnny ro: Thanks for setting me straight, and my apologies for the error.

By: lewissalem

lewissalem — Fri, 07 Nov 2008 03:33:31 +0000

Never heard of them.

LS in NC.

By: kurtamaxxguy

kurtamaxxguy — Fri, 07 Nov 2008 01:17:46 +0000

My few interactions with AutoNation dealers proved the old school of car dealing is alive and well there. Caveat Emptor.

By: johnny ro

johnny ro — Fri, 07 Nov 2008 00:39:24 +0000

Sorry, USGAAP accounting rule is no upside if values recover. Impairing goodwill and other intangible assets is a one way street.