Author Topic: AN - AutoNation  (Read 20822 times)

kab60

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Re: AN - AutoNation
« Reply #70 on: January 08, 2019, 01:51:00 PM »
Sounds like more bad news is coming. Chopping so many execs ( or do they want to leave?) is rarely a good sign.
It's a pretty simple and boring business, so I don't expect any big surprises. I suppose Mike might setup the company for a new CEO, and if they've gotten too fat at HQ and some positions aren't worth the cost I'm all for it. Hard to read too much into. Generally I just don't like too much exec rotation and I think it looks bad in him that they don't have an internal candidate ready to take over.


Spekulatius

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Re: AN - AutoNation
« Reply #71 on: January 08, 2019, 03:52:52 PM »
Sounds like more bad news is coming. Chopping so many execs ( or do they want to leave?) is rarely a good sign.
It's a pretty simple and boring business, so I don't expect any big surprises. I suppose Mike might setup the company for a new CEO, and if they've gotten too fat at HQ and some positions aren't worth the cost I'm all for it. Hard to read too much into. Generally I just don't like too much exec rotation and I think it looks bad in him that they don't have an internal candidate ready to take over.

I am betting that most positions will be replaced. There is going to be a head of HR and a CTO in the future and probably someone overseeing real estate (the latter could be replaced lower level executive), so these departures are only a small part of the $50M in savings. Besides that $50M hardly move the needle for a company with $21B in revenue and $3.3B in gross profits. It’s more likely that there is some change in direction or some issues and I am guessing we will find out soon.

Disclosure: no position
« Last Edit: January 08, 2019, 05:00:16 PM by Spekulatius »
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Foreign Tuffett

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Re: AN - AutoNation
« Reply #72 on: January 08, 2019, 04:04:15 PM »
Sounds like more bad news is coming. Chopping so many execs ( or do they want to leave?) is rarely a good sign.

I agree that it doesn't look good. Iserman only lasted a 18 months as COO after his predecessor Berman "unexpectedly" resigned (I think he was forced out). Not a good sign.


ander

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Re: AN - AutoNation
« Reply #73 on: January 08, 2019, 04:31:12 PM »
Agreed a lot of turnover. Cascade board member resigned. Execs left last year. Mike Jackson is stepping down as CEO. Possibilities for restructuring: being pro-active for expected decline in SAAR that Mike’s referred to as rates have gone up, management conflicts, cutting costs for a sale, structure of auto dealer business changing detrimentally impacting profitability negatively.