Auto Nation spends on the future today
(August 22, 2011) ENCINO, Calif. — Land Rover of Encino, an Auto Nation, Inc. owned dealership in this northwestern suburb of Los Angeles may be the poster child of the company’s decision to spend a ton of money on getting bigger and being better. Smart money investing today when saving money on labor rates and materials is possible while still creating jobs is having a positive effect on a number of communities including this little corner of Los Angeles.This particular store is in an affluent neighborhood on an impressive main thoroughfare on the southern edge of the San Fernando Valley, home to more than two million people. It is the only Land Rover store in this market and because of that Land Rover of Encino has spent a lot of its time sharing the spotlight as one of the highest performing stores in the U.S. for the automaker and is one of Auto Nation’s best properties.
The teardown of the store which was constructed during the Ford ownership era of Land Rover is now coming together as a modern structure more nearly tripling the square footage of the original. This project shines a light on what Auto Nation sees as its future.
Speaking to audiences of employees across the country, Auto Nation’s COO Michael Maroone recently told of massive investments undertaken by the largest dealer group in the nation. He touted the investment of more than one-half billion dollars into new and renovated dealerships as an advantage of working for a public dealership group. Their stores will stay competitive, he noted. 
The project which started in 2010 spends the $500 million on 125 stores including Land Rover of Encino. Maroone said that despite the recession and the concern about the rebounding of sales "we did not back off on our [spending], and I think it really separates us. "Nobody in the history of our business has ever stepped up and poured this level of capital in." "In the private-cap world, when you make some money, it goes where?" Maroone asked."Into the dealer's pocket. They might have a nice boat. They might buy an airplane. They might buy a vacation house. At AutoNation, 100 percent of the profits get invested in the company, and that's important."
The Encino store is about a third completed and when finished it likely to be a highlight of Maroone’s slide show of America’s largest collection of dealerships.
MotorwayAmerica photos by Ted Biederman
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