AutoNation Inc. could add as much as $2 billion in annual revenue through acquisitions in 2014 -- but CEO Mike Jackson isn't setting that as a target.
The nation's largest automotive retailer is looking for dealerships to buy and has the ability to make purchases that would add $1 billion, maybe even $2 billion, in annual revenue, Jackson told Automotive News. But it all depends on price and negotiation, he said.
"We could be sitting here a year from now and have done $2 billion, or we could be sitting here a year from now and have done nothing," Jackson said last week after AutoNation reported a 31 percent gain in fourth-quarter net profit. "You really don't know. You just have to see what comes to market, whether it's something we're interested in, whether we can get an agreement on price."
Jackson said he will walk away from deals that fail to meet AutoNation's pricing criteria. The company is constantly in discussions with sellers about possible deals, he said. Jackson called current pricing "fair."
AutoNation finalized the acquisitions of Honda and Hyundai stores in the Chicago area during the fourth quarter, after purchases of Honda and Hyundai dealerships in Phoenix and a Toyota-Scion store in Dallas in the second quarter. In 2013, AutoNation also was awarded new Mercedes-Benz points in the Atlanta and Tampa, Fla., markets. Those stores are expected to open by early 2015.