AutoNation Inc. is tapping into its tax-change windfall to invest in employee development to train associates in two areas: its brand extensions and partnership with Waymo. It also has enhanced employee benefits.
The nation's largest dealership group expects that in 2018, net income from continuing operations will increase by between $75 million to $100 million, from $435 million in 2017, because of the decline in the corporate federal tax rate.
AutoNation, of Fort Lauderdale, Fla., will invest some of the income it has gained in employee training for brand extension, CEO Mike Jackson said.
This year especially, Jackson says, AutoNation will use the strength of its brand to succeed. About five years ago, AutoNation branded its nonluxury dealerships with the AutoNation name. In 2016, Jackson sketched out a vision for AutoNation-branded auctions, used-car outlets and collision centers selling AutoNation-branded parts, accessories and finance and insurance products. AutoNation also launched an equity mining tool and a one-price selling model for its used vehicles.