Earnings Preview: AutoNation To Report 3Q Results

MICHAEL FELBERBAUM

RICHMOND, Va. (AP) — AutoNation Inc. is scheduled to report earnings for its third quarter Thursday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: The nation's largest automotive retailer, based in Fort Lauderdale, Fla., owns about 245 new-vehicle franchises in 15 states.

Automakers sold a total of 1.3 million new cars and light trucks in August, with more than half of the sales coming under the government's Cash for Clunkers rebate program which began in late July and extended into August.

AutoNation said it sold 13,000 vehicles during the program. The auto retailer also said in September it would boost orders 50 percent in the fourth quarter from the third quarter and also ordered more cars than expected in the third quarter.

Industrywide U.S. sales of cars and light trucks fell to just under 746,000 in September, down 41 percent from August.

The slump brought car and truck makers back to earth following a heady August. Automakers got a lift from clunkers, which spurred sales of nearly 700,000 new vehicles during the summer months. Big rebates lured in many buyers who otherwise would have waited until later in the year to walk into dealerships.