AutoNation CEO Cheryl Miller Takes Health Leave -- Update

By Colin Kellaher 

AutoNation Inc.'s chief executive Cheryl Miller has taken a leave of absence for health reasons, adding to the challenges confronting the nation's largest car-dealership chain as the coronavirus outbreak has pummeled sales and dented business.

The company said Monday in a filing with the Securities and Exchange Commission that Chairman Mike Jackson will serve as interim president and CEO until Ms. Miller returns. An AutoNation spokesman declined to disclose further information on Ms. Miller's health.

AutoNation didn't disclose further information on Ms. Miller's health.

Ms. Miller, 47 years old, took the helm at AutoNation last July following the ouster of Carl Liebert after just months on the job.

The first female CEO of a publicly-traded auto retailer, Ms. Miller has led several strategic initiatives including building AutoNation's partnership with Waymo, the driverless-car unit of Google parent Alphabet Inc. She most recently served as AutoNation's chief financial officer before taking the top job.

Mr. Jackson, 71, led AutoNation as chief executive for nearly two decades before stepping down at the start of 2019. He is credited with growing the Fort Lauderdale, Fla.-based dealership chain into an auto-retailing giant, with more than 300 stores in 18 states.

Mr. Jackson also is known for his candor and willingness to criticize car companies for practices that hurt their dealers, such as over-producing vehicles.

Mr. Liebert was an industry outsider when he became CEO last March, succeeding Mr. Jackson. However, the company quickly realized that Mr. Liebert "was not a good fit" and promoted Ms. Miller, then its chief financial officer, to the top post.

Like other parts of the auto industry, U.S. dealerships have been hit hard by the Covid-19 outbreak, with sales plummeting at the end of March as millions of Americans were ordered to stay home.

Car executives and experts expect sales declines to worsen this month with many states continuing on lockdown.

Some analysts are predicting U.S. new car sales could fall as low as 13.5 million in 2020 -- a level not seen since 2010 when the industry was only starting to emerge from the financial crisis.

AutoNation took cost-cutting measures earlier this month, laying off 7,000 workers, cutting executive pay and postponing more than $50 million in capital expenditures, according to a regulatory filing. The company said in the filing that sales of new and used vehicles declined by about 50% during the last two weeks of March, compared with the same period a year ago.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

April 13, 2020 10:44 ET (14:44 GMT)

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