Page added on June 19, 2006
America’s biggest auto dealer has a plan to cut oil imports but it won’t win him many friends in the business.
NEW YORK (FORTUNE) – Mike Jackson has a prescription for reigning in energy usage that is simple, straightforward and guaranteed to be effective. The CEO of AutoNation (Charts), the largest chain of auto dealers in the United States, suggests that the government raise the tax on gasoline by another $1 per gallon.
If that sounds like suicide for someone who makes his living selling new cars, well, that’s Jackson. Talking straight is his MO and he’s using his bully pulpit to make a uniquely personal campaign against dependence on imported oil. He spoke with FORTUNE Senior Editor Alex Taylor III.
What impact are high gasoline prices having on the cars and trucks you sell?
This is one of those issues where you have to look at what the consumer does – usually a lot of complaining but very little change. However, I’ve always said that $3-a-gallon gas is a tipping point for consumer behavior. Now we’re there for the second time in a year and consumers are beginning to believe that prices are going to be higher for extended periods.
The coolness factor has left sport utility vehicles. SUVs are being purchased on an as-needed basis. Consumers would be switching to crossover utility vehicles anyway, because they offer many benefits over SUVs, like better ride and handling and fuel efficiency, but that process is being accelerated.
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