One on One with AutoNation CEO Mike Jackson

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It takes the utilization of process and technology to solve that equation.

MB: How can technology help in your stores selling situation and environment?
MJ:Let me give you an example. Here in Florida we developed a program called Smart Choice. It's a program we are taking across the country: A customer comes into a store, we do a computerized need analysis of which vehicle is right for them, a decision is made and a price is decided upon. Within two minutes the customer will get one piece of paper from the salesperson that summarizes the entire transaction and offers all the options in menu form for financing that vehicle. The salesperson tells them, “Here's your vehicle, here's what it lists for, here's what we are selling it to you for, the trade-in, the taxes involved, here's all the different financing options depending on how much you want to put down, the term, whether you're going to lease or buy…

MB: That's amazing. What has this done for your business?
MJ: There is no back room. No F&I. We've cut transaction times by 50 percent by doing this. I must tell you; however, the technology to make that happen took us years to develop and put in place. The point is we have the size, we can afford the huge investment in research and development, we have the vision to win for the customer and we created something that is a unique benefit for the customer. It's a win for the customer. It's a win for our associate—they are much more productive, they can get more done in one day because they are selling more vehicles a day. It's an easier way to do business. Therefore, the increased productivity means a bigger gain for the company. So, it's win, win, win.

AutoNation's Role and Responsibility in the Retail Automobile Business. The Auto Industry and Jackson's Thoughts for the Future.

MB: Recently, Irv Miller of Toyota and I discussed the incumbent responsibilities of being No. 1. What is your position on being number one?
MJ: Yes, there is a responsibility of leadership. If you look at most industries there has always been a clear voice from the customer and the retailer with that industry into the suppliers and manufacturers of that industry. In the retail automobile industry we were missing that because everybody was so small relative to the size of the manufacturers. There was an imbalance, which I do not think was healthy.

MB: You've been quite vocal, Mike, about your position on the gas tax in America. I assume that is a corporate issue?
MJ: That's a perfect example. We've had five presidents in a row who have said our dependence on imported oil is a matter of national security. Actually, on this issue you can pick whether you're motivated by global warming or national security—it doesn't matter. If you look at the issue and want a serious energy policy that's going to make a difference—because in this period with these five presidents we've gone from importing 30 percent of our oil to 60 percent of our oil—so, obviously we don't have a policy that's dealing with this.

MB: What can be done?
MJ: You come to the conclusion that you must deal with supply, with the consumer and you have to bring in new technologies as an accelerator, as a game changer. Therefore, you need a policy that addresses all three components.

MB: How best is this accomplished?
MJ: My expertise is on the consumer. When it comes to fuel consumption and fuel economy do not listen to what people tell you they are going to do, look at what they actually do. Take model year '06 with all the discussions about fuel economy and everything else, fuel economy for the cars sold will be basically unchanged. It's the same as the last 25 years.

MB: Can this attitude, in your opinion, be changed?
MJ: Look around the world, other industrial societies have had the political courage to tax gasoline at higher rates and got a change in behavior. Technology is the same in Europe as it is in the U.S., but European fuel economy is 36 percent higher than we are.