That's based on TrueCar's closing stock price Nov. 4, which was the day of the acquisition, according to a regulatory filing.
The auto retail giant, which just seven years ago had a contentious relationship with TrueCar, said in a statement Tuesday that the investment is a sign of AutoNation's commitment to emerging technology and customer experience focus and hinted there could be further broadening of the companies' relationship.
"We believe that TrueCar, with its leading digital marketplace, is well positioned to enhance the digital car buying experience and provide personal transportation solutions that are easy, transparent, and customer-centric," AutoNation CEO Mike Manley said in a statement. "We also believe the investment will strengthen the relationship between our companies and provides an opportunity for closer commercial collaboration with TrueCar in the future."
Said TrueCar CEO Mike Darrow in a statement: "Our companies believe this opens the door to an opportunity to collaborate on ways to provide a superior digital buying and selling experience for consumers."
TrueCar has faced some financial woes in recent years. Most recently, a stock price-induced impairment charge led to a $77.1 million net loss in the third quarter. The company's share price dropped 55 percent, from $3.33 to $1.51, from May 31 to Sept. 30.
TrueCar's stock was trading up 19 percent around 11:45 a.m. Tuesday to $2.33 a share.
AutoNation's Manley, since joining the auto retailer in November 2021, has made strides toward more third-party partnerships and business diversification.
TrueCar founder Scott Painter and his vehicle subscription company, Autonomy, said in August that it was ordering 23,000 vehicles and that AutoNation would largely handle the vehicle intake through a new partnership that also includes vehicle delivery, service and subscriber activation.
And AutoNation in October completed its acquisition of CIG Financial, an Irvine, Calif., auto finance company that will serve as AutoNation's captive finance company, AutoNation Finance.
AutoNation and TrueCar have a history of both disputes and renewed partnerships.
In July 2015, then-AutoNation CEO Mike Jackson severed ties with TrueCar over data-sharing terms but began using the vehicle shopping website again by April 2016 after then-TrueCar CEO Chip Perry made efforts to change his company's practices.
AutoNation, of Fort Lauderdale, Fla., ranks No. 1 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 262,403 new vehicles in 2021.