AutoNation Inc. plans to restructure its organization and reduce costs by approximately $50 million, enabling the company to be more flexible and adapt other business development strategies, such as digital marketing.
"We believe automotive retail will be challenging in 2019 and improving our performance, creating synergies across our network, and restructuring our corporate and regional teams are pivotal components of AutoNation's cost savings plan, as we create a more agile, streamlined, and efficient core business that is well-positioned for long-term success," AutoNation Chairman, CEO and President Mike Jackson said. "These actions will better position us for a changing market."
AutoNation’s cost-saving effort and restructuring includes realignment of its operating structure. Its regional structure will be reduces from three regions to two. Also, James Bender has been named executive vice president of sales.
"Jim is an exceptional and respected leader, with tremendous success," Jackson said. "He will lead all aspects of the variable sales operations."
Other movements include the exodus of four executive vice presidents: Lance Iserman, Tom Conophy, Donna Parlapiano and Dennis Berger.