AutoNation CEO: Control Your Inventory!

Edward Niedermeyer
by Edward Niedermeyer

AutoNation CEO Mike Jackson has issues with the industry practice of maintaining 50 to 60 days worth of supply of new vehicles. In today’s Automotive News [sub], Jackson advocates for a 30-day benchmark, blasting the manufacturers for their complacency.

What other business accepts the same benchmark for 50, 60 years and says, ‘That’s fine”? As soon as you put the parts together in a vehicle, nobody cares if it sits there for 90 days. And how you can get those ideas together in the same head is beyond me

Disagree? Take a look at the latest Automotive News [sub] inventory report before you weigh in. One example: as of September 1, Buick had a 25-day supply of LaCrosse and a 130-day supply of Lucerne. Cadillac and Lincoln also had no models with fewer than 72 days of supply. It seems this Jackson character is on to something…

Edward Niedermeyer
Edward Niedermeyer

More by Edward Niedermeyer

Join the conversation
4 of 48 comments
  • DweezilSFV DweezilSFV on Oct 09, 2009

    Buying a car is not even close to the same as buying a computer on line. People want to see the car, hear it, drive it smell it. They want to be excited about this 2nd largest purchase of many people's lives. Sorry. That sort of primal, emotional, involvement just does not happen when purchasing a computer over the internet. Or with buying a computer at all. Getting a new car is exciting.The purchase will be your partner in crime,commuting,a ticket to new places, a vessel for memories over the years, carry you and your loved ones to holidays and distant places. It will basically be at the core of your life for many years, it will share it's life with you. Buying a computer is as exciting as buying a washing machine. Not the same thing.Perhaps Toyota could sell Camrys and Corollas that way, but one would be the sort that really didn't get that much involved with their cars or trucks. "Somewhere west of Laramie....."

  • Geotpf Geotpf on Oct 09, 2009

    Can't you still go to a Detroit dealer and order a car direct from the factory, built to your specs? I know the Japanese and Korean don't do it, but I thought the Detroit Three still do. I think you might be able to do this with some of the Europeans, too.

  • 50merc 50merc on Oct 09, 2009

    Robert Schwartz: "@iNeon: You can have any color you want as long as it is gray." Amen, brother, amen! Darkest gray (black), dark gray, light gray and lightest gray (silver). NulloModo, I'm glad to hear Ford is trying mint green. (But "natural neutral"? Are they nuts?) Any shade of green is rare nowadays. Toyota offers an attractive light green on Avalon and Sienna, but not on mass-market models. Then there are interiors: beige, gray or black. Gone are the sumptuous and beautiful dark blue, burgundy red or tobacco brown interiors of yesteryear.

  • Zarf Zarf on Oct 09, 2009

    I like Twotones idea of the central warehouse. I want to know why tan has become the primary interior color. If I buy a black car I want a black interior. In fact, I don't care what color I buy, I want a black interior. At least for me that would work because I prefer dark colors.