AutoNation, Inc. (NYSE: AN) CEO Mike Jackson has recorded that the demand for new and used cars will soar till 2022. The official from the automobile giant made this comment in the backdrop of the world economy leaping back to normal after battling the second wave of the deadly coronavirus pandemic and when the developed and the developing nations are preparing for the third wave of the pandemic.
CEO of AutoNation, Inc. comments on demand for new and used cars
Jackson commented that he does not expect the demand for used and new cars to drop until 2022. “Demand continues to outpace supply for new vehicles. We expect this to continue into 2022 due to consumers’ preference for personal transportation coupled with lower interest rates,” AutoNation, Inc. CEO Jackson said.
Performance of the AutoNation, Inc. stock
The stock of AutoNation, Inc. has been performing well. The stock skyrocketed 130% in the last year. In addition, the company declared its second-quarter results recently. The same-store sales climb 54%, which is up from what it was in the second quarter of 2019.
A source from AutoNation, Inc. stated that demand for used and new vehicles had pushed the company’s profit. In the new and used vehicle segment, the company recorded a profit. While the profit in the new vehicle segment rose 89%, the company recorded a used vehicle gross profit of 24% from the previous year. The company registered gains in the new and used vehicle segment of 130% and 53%, respectively, compared to the second quarter of 2019.
According to reports, the company has 9% of its outstanding shares for a sum of $736 million in this quarter. Year-to-date, the company has repurchased 15% of the company for $1.2 billion on stock buybacks.
AutoNation, Inc. operates as many as 315 retail locations across the country. The company saw strong growth in imports and premium luxury vehicles. Thanks to the demand from consumers.