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AutoNation (AN -1.2%) CEO Mike Jackson throws a bit of a scare across the automobile industry by...

AutoNation (AN -1.2%) CEO Mike Jackson throws a bit of a scare across the automobile industry by telling CNBC (video) a fiscal cliff stalemate could strike the sector during the last ten days of the year when selling is typically high. After a good run in 2012, will the ongoing impact from Hurricane Sandy and muted consumer demand due to political tension spur a disappointing Q4 for automakers in the U.S.?
Comments (16)
  • $CLU
    , contributor
    Comments (207) | Send Message
     
    Wow, Way to go CEO Mike!
    If your stock is heading down, might as well hit the accelerator.
    Leave a real big hole instead of dent in the earth!
    I don't own any AutoNation but it has showed up in my search metrics before.

     

    Any insight into the CEO's intentions here?
    12 Nov 2012, 10:22 AM Reply Like
  • Tdot
    , contributor
    Comments (3778) | Send Message
     
    Most likely the CEO is hedging bets on analysts expectations of continued recovery-level sales at 14.5+ million SAAR units, well into December.

     

    If vehicle sales do drop on consumer worries, then he can say "he called it!". If they don't - well then everyone is happy. He has nothing to lose.

     

    Meanwhile, the Hysterical News Media, which will have nothing better to do with their time once the Mayan Doomsday passes by, won't be able to hold back their enthusiasm for the Congressional and Presidential inability to pass legislation to prevent the so-called Fiscal Cliff; which if invoked, would immediately raise taxes and deeply cut government spending, resulting in a probable recession.
    12 Nov 2012, 10:31 AM Reply Like
  • bdiem
    , contributor
    Comments (7) | Send Message
     
    I think that Jackson is simply a good citizen, trying to put pressure on the Congress and President to find a compromise. The drop in the stock market the day after the election just balanced the gain of the day before the election. President Obama hasn't destroyed the country in his first four years, and he is unlikely to do so in the next four. In fact, the economy has been rebuilding. "May it continue," says Jackson.
    12 Nov 2012, 10:42 AM Reply Like
  • irish_bob
    , contributor
    Comments (450) | Send Message
     
    rest assured someone else will be on tommorrow saying the top auto companies are screaming buys
    12 Nov 2012, 11:03 AM Reply Like
  • Jackls
    , contributor
    Comments (15) | Send Message
     
    I agree with "Tdot." If sales decline, he can say "I told you so!" I they increase? Well, its hard to agrue with improvement.
    12 Nov 2012, 11:05 AM Reply Like
  • TwistTie
    , contributor
    Comments (2476) | Send Message
     
    Attention NYSE shoppers!

     

    All stocks will be going on sale at a 30% discount for our annual year-end "Baffled CEO" sale.

     

    Lay away your favorite stocks with at-the-money puts.
    12 Nov 2012, 11:29 AM Reply Like
  • Tusc
    , contributor
    Comments (277) | Send Message
     
    Sandy destroyed a few hundred thousand cars that were insured, and have to be replaced. Whatever the cliff results, a lot of cars are going to be sold.
    12 Nov 2012, 11:29 AM Reply Like
  • Ryandan
    , contributor
    Comments (1614) | Send Message
     
    Yeah, all those people will be out buying brand new cars.......! I'm thinking food and clothes first, a place to live second, repairing whatever could be saved third and then maybe a used car. And all those floaters will be back in the market as soon as the back alley boys can give them a buff and new set of plugs.
    12 Nov 2012, 01:56 PM Reply Like
  • Tdot
    , contributor
    Comments (3778) | Send Message
     
    May have missed Tusc's point about the Insurance aspect.

     

    If all those people have comprehensive or flood damage riders on their vehicle insurance, and they were found to be "totaled", then they could get their replacement from the insurance company pretty much the next day after settling. Then they can go shopping for food and shelter, gather up their salvageable belongings, hire a contractor, and get back to shopping for furniture.

     

    With all those homes needing to get dismantled and rebuilt, lots and lots of contractors will be needing lots of trucks and tools and equipment and lumber.

     

    Insurance can be a wonderful thing.
    13 Nov 2012, 03:12 AM Reply Like
  • Ryandan
    , contributor
    Comments (1614) | Send Message
     
    No I didn't miss the insurance thing but thanks for worrying about it. Maybe you've never been in a disaster area like that, but finding insurance people or FEMA people to settle claims is next to impossible with that kind of damage. And if you get a check for a car and you don't have food, or clothes, or a house, you don't buy the car, you buy what will keep you and your kids alive. I have family in FEMA (first responders) and what goes on in there is beyond your worse nightmare and something they won't admit. Most claims don't get settled for more than a year, they get settled for 1/2 what people thought they would get, etc. etc. I had a brother-in-law settling about 20 claims a week two years after Katrina (sp).

     

    But your happy go lucky imagination where the family arrives at the dealership in a taxi a week after the disaster with check in hand with no garage, house, food or clothes is a little less than realistic.
    13 Nov 2012, 09:30 AM Reply Like
  • Ryandan
    , contributor
    Comments (1614) | Send Message
     
    Forgot to mention most people I know don't have enough equity in their cars to shake a stick at....
    13 Nov 2012, 09:32 AM Reply Like
  • Tdot
    , contributor
    Comments (3778) | Send Message
     
    They sure are. http://bloom.bg/VbKg7A
    1 Dec 2012, 12:26 AM Reply Like
  • Ryandan
    , contributor
    Comments (1614) | Send Message
     
    you've been waiting for weeks to respond... ;-)

     

    i don't think this short term bounce is going to change sales reports for the year. i believe most people will be buying used clunkers until they recover........

     

    and good morning.............up late or up early?
    1 Dec 2012, 08:04 AM Reply Like
  • bondork
    , contributor
    Comments (25) | Send Message
     
    Buy ford the leader of the pack, watch when all of Fords gas saving cars hit the market, this stock will sky rocket.
    12 Nov 2012, 11:37 AM Reply Like
  • del203
    , contributor
    Comments (2) | Send Message
     
    'Bout me? Nobody cares. I'm a retired pilot, seeing a lot of jobs coming into the Airlines in the years ahead. Wouldn't it be fun flying the new machines at four-one -oh all the time?? I'm sure they'll cruise at .803, too, maybe more.

     

    I also drive an old Ford .... 166,000 miles on it .. haven't even changed a light bulb yit. Gets 41 mpg, @ 60mph, so I'm forced to use economy cruise just for the mpg. Uses no oil yet, its been the best car I've ever owned. And I've owned a few ... but it will always be a F from now on.
    13 Nov 2012, 12:16 AM Reply Like
  • Tdot
    , contributor
    Comments (3778) | Send Message
     
    Of course we care.

     

    Pretty sure the 787 cruises around .85, right along with the venerable 747, which stretches legs to .86 or so.
    13 Nov 2012, 03:20 AM Reply Like
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