Cliff Banks - The Banks Report

AutoNation Stops Selling Cars with Open Recalls

September 9, 2015 — A few weeks ago, AutoNation took the bold step of putting a stop on all sales of vehicles in it inventory that have open recalls. The move includes all new and used vehicles — including ones slated for wholesale.

AutoNation estimates it will affect between 5% to 10% of its overall inventory and admits it will cost the group some sales initially. To offset the decline in inventory as recall issues are being fixed, AutoNation likely will add another 10,000 vehicles to its inventory.

The industry saw approximately 62.9 million vehicles recalled in 803 separate actions last year. And with the ongoing airbag recall affecting more than 40 million vehicles this year, Mike Jackson, AutoNation CEO, decided it was time do something, calling the explosion of recalls a “black eye for the industry.”




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