Gas Prices No Obstacle for Rich Boomers
By George Anderson
The largest car retailer in the U.S., AutoNation, Inc., says that the high prices being paid at the pump haven’t done a thing to slow down luxury car sales at its dealerships.
According to the company, the sale of luxury vehicles was up 15 percent in the most recent quarter and it sees no sign of letup in the near future.
Chairman and CEO of AutoNation Mike Jackson said, “I think over the next five years, the premium luxury segment will grow at double the rate of the volume market because of demographic trends. The baby boom generation simply shows no signs of slowing down or retiring.”
About the only thing that might cause a change in consumer’s buying behavior, said Mr. Jackson, is if a gas shortage should hit the country.
The reality of what is taking place at the company’s dealerships is different than what many industry watchers are saying.
“There is a resistance to change that is considerable,” he said. “There’s a lot of talk but you really have to look at behavior.”
Moderator’s Comment: How do you explain the difference between AutoNation’s sales numbers and the perception that
luxury and less fuel-efficient vehicles are not selling as well as they once were? What does this say about the need for all retail businesses to engage in fact-based decision-making?
– George Anderson – Moderator