AutoNation to Stop Online Broker Sales

AutoNation Inc., the largest U.S. car retailer, has told all its 900 dealers not to sell vehicles to Internet brokers after General Motors Corp. and Ford Motor Co. last month warned that dealers could lose their franchise agreements for doing so. Mike Jackson, chief executive of Fort Lauderdale, Fla.-based AutoNation, said its dealers had done “some relatively modest amount” of business with companies such as CarsDirect.com that sell directly to consumers rather than generate sales leads for dealers. AutoNation said $1 billion of its $11.7 billion in 1999 new-vehicle sales came from customers who used the Internet. Jackson said he expects that to increase to about $1.75 billion this year. AutoNation shares fell 31 cents to close at $7.63 on the NYSE.