FORT LAUDERDALE, Fla. -- AutoNation Inc. this week will start rebranding 12 Phoenix-area dealerships under the Power name.
Those stores last year reported about $700 million in revenue for the publicly held dealership group.
AutoNation began using the Power name in the Los Angeles market in 2003. Today, Power is used on 36 of its 43 stores there.
Phoenix will be the 15th U.S. market in which AutoNation renames stores under a single brand.
The Fort Lauderdale company says its branding strategy helps trim advertising costs and attempts to provide the same quality of service at dealerships with the same brand name.
The Phoenix market had some "very strong legacy brands," such as Lou Grubb and Brown and Brown, AutoNation CEO Mike Jackson said here after an event marking the sale of AutoNation's 5-millionth new or used vehicle.
"With some trepidation, we're going to have to leave some brand equity behind and create some new brand equity," Jackson said. "But I'm absolutely convinced that a year from now we will have successfully done that."
Phoenix TV spots for the Power brand will feature AutoNation spokesman John Elway, a former Denver Broncos quarterback. Elway also is AutoNation's spokesman in Denver and Las Vegas.
AutoNation ranks No. 1 on the Automotive News list of the top dealership groups with new-vehicle retail sales of 410,621 in 2004. That's about 4,000 fewer than in 2003.
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