Nation's Largest Dealer Group To Push Luxury Brands Amid Ensuing Economic Downturn

Washington DC August 28, 2006; The AIADA newsletter reported that AutoNation Chairman and CEO Mike Jackson warned of economic troubles ahead, saying in an interview last week, "rising interest rates are going to pop the bubble in real estate, and that, combined with rising gas prices, is toxic to the consumer."

Part of Jackson's strategy to weather an economic downturn is to concentrate more on luxury brands, reports The Los Angeles Times. "The environment in premium luxury is still quite good because there's a strong, positive demographic," Jackson said.

International nameplate autos make up more than 60 percent of AutoNation's business. Luxury brands Lexus, Mercedes-Benz, and BMW account for 22 percent of the dealer giant's sales.