Autonation CEO: Mid-15M in U.S. Auto Sales in 2013
Autonation CEO Mike Jackson on the outlook for auto sales.
- Duration 6:01
- Date Feb 7, 2013
Autonation CEO Mike Jackson on the outlook for auto sales.
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I -- next guest knows pops up more and more Americans turning in their old cars and snapping up new vehicles may -- like that new tundra eventually.
In part because they have -- -- dealers like AutoNation cashing in on the upgrade cycle.
Look at these sales look at our -- sales year over year up 22%.
For the month of January.
-- -- -- -- -- The domestic numbers -- the luxury high end luxury numbers what does the future holds looks pretty bright for right now AutoNation chairman and CEO Mike Jackson joining me in a Fox Business exclusive and those numbers and I don't know if you just saw Jeff Flock.
Running around that tundra but it need it there seems to be such an exciting air right now where the big margins are when it comes to those things like trucks.
What are you seeing in the domestic market Mike.
-- -- -- afternoon great to be with you.
-- the gingerbread house had these kids -- -- -- -- there is a world exclusive this is my first interview ever.
From the ginger from a gingerbread house to very inspiring place.
But you know may -- over the years I've call them as I see them and I fully agree with Bob Carter the auto industry is a bright spot.
In the US economy.
And I seen it that way for the last several years and -- while I'm a very good car salesman from New Jersey.
There -- some drivers here that are very powerful that this -- to recovery is going to continue on those.
Skeptics are one -- have proved to be wrong here -- the drivers.
I genuine replacement need we didn't have a recession in automotive we had a -- -- Sales collapse to an unfathomable.
Low level and people I stopped buying vehicles and -- pushed up the average age of cars in the United States to eleven years old.
They stop fixing them and they.
Have to do something.
Study -- -- talk to Los and we have great new products like never before great design quality innovation.
And the financing is the best offering we've ever had because.
Why the banks want to lend again they were very impressed with the way the consumer.
Major -- -- -- first in our household during the financial crisis so we're very attractive place to lend and if you look at the December.
-- January sales figures it really says something about the mindset of the American consumer.
There are no longer transfixed -- paralyzed by the dysfunction in Washington DC.
They said that you know we've had our own austerity program we've straightened out our balance sheet and our debt levels and -- moving on with our lives.
So you put those four factors together more confident and optimistic than I ever been.
In forecasting mid fifteen.
OK you're talking -- fifteen million auto sales overall fresh fifteen million.
Unit sales for the US auto industry and that's up additional million units -- the 141000500.
OK so so that's took that to me as big news when you say mid of fifteen million do we have to wait another year before we get to sixteen million.
I think we do I think the it's absolute.
Over the rainbow to break through sixteen million this year that you may see an individual months.
Later in the year that has a selling rate of sixteen but I don't think you can get the entire year.
Over sixteen but if this economy continues to recover.
And here -- the factors that are working force housing.
Has stabilized and that did that people don't feel like the rug is going to be pulled out from underneath -- -- -- their home town has given them the confidence to make -- durable goods.
-- purchased plus.
The construction of new homes has resumed it'll break through a million unit -- -- and -- energy in the US as it is a big bright spot.
And they're really just saw there and it's looking better when we we see the truck sales that look really good a lot of that I've talked to Ford had talked to as we know we just heard from Toyota.
A lot of that is driven by the contractor base I don't want to get to two things.
Before we go we'll get your charity in 12 but I also wanted to ask you were starting to see.
Gas prices tick higher the last time we spoke you said that the freak out level.
Might be five dollars a gallon we're nowhere near that right now but.
Does that's still does that still stand at the freak out level would be five dollars a gallon or is it now back to around 45475.
I think you've made behind.
An amazing thing is has happened -- usually I call out gasoline.
High gasoline prices as a risk factor to the auto industry right now it's actually helping sales because.
We have a new.
Offering to the American consumer we say -- listen.
You -- have to downsize you don't have to go slower.
In order to get better fuel economy and and by the way Americans hate going backwards you have the same size vehicle.
And don't just as fast.
And and by buying a newer vehicle pick -- -- to point five to 30%.
In fuel efficiency and you don't have to get an exotic hybrid or electric to do it -- and the American people are saying sold.
Exactly we're watching that behavior as we go I do want to mention that -- in the gingerbread house for a reason AutoNation giving a billion dollars.
To a very worthy cause for children who are extraordinarily sickened and it's just it's a great thing when you have a corporation with a heart.
Well thank you are CFO has been chairman of -- -- -- world for the last ten years.
I'm here with Bob Brown one of our board members whose work all over the world on behalf of children.
And our commitment to give kids the world continues its and inspiring place.
A car salesman from New Jersey doing wonderfully great stock prices well -- that jumping exponentially over the past couple of months and over the past year up 30% Mike good to see you thank you.
-- good to see you Mike Jackson AutoNation chairman and CEO and a Fox Business exclusive saying expect mid -- fifteen million in car sales this year.
Come a long way baby from the looks of of the financial crisis -- --