Question · Q3 2025
Bret David Jordan inquired about consumer sentiment in the luxury space, asking if AutoNation is observing any softening in demand at higher price points. He also sought clarification on whether the domestic internal combustion (ICE) gross profit per unit (GPU) pressure was brand-specific, a one-off event, or indicative of sustained pressure.
Answer
CEO Mike Manley noted that luxury demand appears more muted than last year, particularly in October, though a seasonal uptick is still anticipated in December. Regarding domestic ICE GPUs, Manley attributed some pressure to 'self-inflicted' actions in the middle of the quarter, which were corrected in September. He explained that domestic OEMs often chase volume with dealer programs, leading to competitive net transaction prices and general downward pressure across the segment. Manley emphasized AutoNation's aim for balanced growth, considering the long-term benefits of new car sales, including customer loyalty and used car trade-ins.