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AutoNation’s Customer-Pay Parts & Service Revenue Up 3%

Fort Lauderdale, FL-based AutoNation Inc. saw its parts and service revenue increase 2.5 percent to $578 million in the third quarter of 2011. Same-store parts and service revenue was up 0.9 percent. AutoNation’s customer-pay revenue rose 3 percent to $193 million, marking the fifth consecutive quarter of year-over-year increases. This gain was more than offset by a significant decline in warranty revenue, where the repair order count dropped about 10 percent. Management attributed this to fewer units in operation as a result of lower vehicle sales in recent years and, to a lesser extent, the improved quality of vehicles manufactured in recent years.

Parts and service gross profit fell 1.5 percent to $241.90 million, mostly because of declines in warranty business. AutoNation is the largest U.S. automotive retailer with 257 new vehicle franchises in 15 states as of Sept. 30, 2011.