AutoNation Posts Profit In 3Q On Lower Costs

MICHAEL FELBERBAUM

RICHMOND, Va. (AP) — AutoNation Inc., the nation's largest automotive retailer, said Thursday it made money in the third quarter as lower costs and a boost from the Cash for Clunkers program helped it recover from a loss in the year-ago period.

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.

AutoNation, which owns about 245 new-vehicle franchises in 15 states, previously said it sold 13,000 vehicles during the program.

CEO Mike Jackson said the program was a signal to consumers that it was safe to begin to buy again.

"It was like a government seal of approval, like it's safe to come into the marketplace and buy a vehicle, that we're over the abyss we were staring into for six months or nine months where everybody was scared to death whether Armageddon was finally here," Jackson said in an interview with The Associated Press.