AutoNation Revamps Management Structure
FORT LAUDERDALE, Fla. -- AutoNation plans to streamline its regional management structure to improve operational efficiency and management effectiveness.
FORT LAUDERDALE, Fla. -- AutoNation plans to streamline its regional management structure to improve operational efficiency and management effectiveness.
The megadealer will consolidate its ten districts into five regions, each led by a regional president. Within each region, a market president will manage each individual market.
The realignment is part of a four-year process to improve productivity and earnings. Since initiating its emphasis on productivity and cost reduction in 2000, the company has realized a savings of $150 million per year. AutoNation expects that the management realignment will generate about $30 million (pre-tax) in incremental annual cost reductions. The move will require a one-time pre-tax charge to continuing operations of about $5 million, mainly because of severance.
The company announced several related promotions. Jim Bender will become president of the Florida region. Todd Maul will become president of the West Central region. Jerry Heuer will become president of the California region. Dan Agnew will be the president of the Texas region, and Hank Phillips will be president of the East Central region.
"We view our regional presidents as the elite leaders at AutoNation who have excelled in their previous leadership roles," said Mike Maroone, AutoNation's president and chief operating officer.
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