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2001 Annual Report




America’s
largest
automotive
retailer
Financial HIGHLIGHTS
                       Total Revenue                                                                         Earnings Before Interest,                                            Diluted Earnings Per Share
                                                                                                             Taxes, Depreciation                                                  from Continuing Operations
                                                                                                             and Amortization (EBITDA)
Billions                                                                                 Millions
                                     $20.6
                                                                                                                                                                          $1.00
                          $20.1                  $20.0
 $20                                                                                     $700                                                                                                           $.91
                                                                                                                                                      $692
                                                                                                                                                                           .90                                           $.87
                                                                                                                                                                   $663                                    $.84
                                                                                                                                                         $644
                                                                                          600                                                                              .80
                                                                                                                                                                $587
                                                                                                                                      $588                                                                        $.73
                                                                                                                                                                            .70                  $.66
                                                                                          500
                                                                                                                                                                           .60
                                                                                                                 $438
    15
                                                                                          400                                                                                        $.48
                                                                                                                                                                           .50
                                                                                                                                                                           .40
           $12.7
                                                                                          300
                                                                                                                                                                           .30
                                                                                          200                                                                              .20
    10                                                                                                                           $110
                                                                                                                                                                            .10
                                                                                             100                                                                                            $(.07)
                                                                                                                                                                             0
                                                                                                 0                                                                        (.10)
                                                 2001                                                        1998                                                                                                 2001
                                    2000                                                                                                                                                      1999
           1998                                                                                                                   1999                2000                          1998                2000
                          1999                                                                                                                                   2001


                                                Reported results.                                    Pro forma results.  These results exclude certain charges and gains and are not presented on a basis
                                                                                                     consistent with generally accepted accounting principles in the United States.  Please refer to page 21
                                                                                                     of the attached 2001 Annual Report Form 10-K for a reconciliation of these results to reported figures
                                                                                                     and to the quot;Management's Discussion and Analysis of Financial Condition and Results of Operationsquot;
                                                                                                     section of the Form 10-K for further details about these charges and gains.




           Consolidated Earnings and Balance Sheet Highlights
                                                                                                                                                       AS OF AND FOR THE YEAR ENDED DECEMBER 31,




                                                ..     .   . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .    .   .   .   .   .
                                                 *
                                                   .   .   . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .    .   .   .   .   .
                                         1
                                             ....      .   . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .    .   .   .   .   .
                                               2
                                                   .   .   . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .    .   .   .   .   .
                                                           3
                                                             .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .    .   .   .   .   .
                                                           ..    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .    .   .   .   .   .

                   *
                    See legend above. 12000 figure reflects reclassification of certain items. 2Long-term debt in 1998, 1999 and 2000 includes certain operating leases.
                   3
                       Shareholders' equity in 2000 reflects the impact of the tax-free spin-off of the Company's former vehicle rental businesses (ANC Rental Corp.) to AutoNation shareholders.




      Business DESCRIPTION

                   AutoNation, Inc. is America’s largest retailer of both new and used vehicles. As of March 15, 2002, we owned and
                   operated 371 new vehicle franchises from dealership locations in 17 states, predominantly in the Sunbelt.

                   Each of our automotive franchised dealerships offers a diverse range of automotive products and services
                   beyond new and used vehicles that includes vehicle maintenance and repair services, vehicle parts, extended
                   service contracts, insurance products and other aftermarket products, and each also arranges financing for
                   vehicle purchases through third-party sources. Additionally, we operate collision repair centers in most of our
                   key markets. The vehicles we sell are manufactured by Ford, General Motors, DaimlerChrysler, Toyota, Nissan,
                   Honda and BMW. These manufacturers represent approximately 95% of the new vehicles that we sold in
                   2001. In total, we offer 35 different brands of new vehicles.
AutoNation Annual Report 2001




            A letter to
            SHAREHOLDERS
                                                                                                                                           (left to right)
                                                                                                                                           Craig T. Monaghan
To Our Shareholders:                                     to our brand of pure-play, specialty retailing.                                   Chief Financial Officer

2001 was a year in which we enjoyed successes            A great example: In 2001, we drove operational                                    H. Wayne Huizenga
                                                                                                                                           Chairman
with all of our core constituencies.                     improvements in the used vehicle, parts and
                                                         service, and finance and insurance areas of our                                   Mike Jackson
Our customers purchased 712,000 new and used                                                                                               Chief Executive Officer
                                                         automotive franchises. These higher-margin
vehicles from us, helping our company become
                                                         areas offered opportunities that we believed were                                 Michael E. Maroone
America's undisputed leader in automotive retail
                                                         great enough to offset challenges in the U.S.                                     President &
for a fifth straight year.                                                                                                                 Chief Operating Officer
                                                         new vehicle market last year.
On Wall Street, our investors rallied behind
                                                         And they were. Although collectively accounting
AutoNation's solid earnings, cash flow and
                                                         for about a third of our total revenue, these
same-store sales in the face of economic
                                                         higher-margin areas that are unique to automotive
challenges. Their enthusiasm helped generate
                                                         retail delivered 68% of AutoNation's gross margin
more than $2 billion of shareholder value as
                                                         in 2001, enabling us
AutoNation's shares rose 106% and the number of
                                                         to deliver more                       AutoNation's Stock Price Rises 106%
investment analysts covering the company doubled.
                                                         store-level profit                                             (Dec. 2000-Dec. 2001)
                                                                                    $13.00
Meanwhile, in a Fortune magazine survey released         than in 2000. In                                                                                                 $12.33
                                                                                                                          $11.65 $11.60
                                                                                                                                        $11.45
                                                                                                                                                                   $11.06
this year, industry analysts and peers voted us          addition, the                                             $10.85
                                                                                           MONTH-END PRICE PER SHARE




                                                                                    $11.00
                                                                                                                                               $10.76
“America's Most Admired Company” in the                                                                                                                     $10.29
                                                         diversity of the 35
                                                                                                             $9.00
automotive retailing and services sector, giving         vehicle brands we          $ 9.00
                                                                                                                                                      $8.79
                                                                                                       $8.30
AutoNation high marks for its innovative culture,                                                $7.50
                                                         sell and of the 20
                                                                                    $ 7.00
quality of management, financial soundness and –         major markets we                  $6.00


most important – for the caliber of its people.          operate in made us         $ 5.00

                                                         even more resilient.
Indeed, it was these 30,000 company associates
                                                                                                                       $ 3.00
whom we relied on most last year in our drive to         In fact, because of
be America's best run, most profitable and most          these strengths, and                                                                                                       12/01
                                                                                         12/00 1/01                                            7/01   8/01   9/01   10/01   11/01
                                                                                                    2/01           5/01
                                                                                                         3/01 4/01                      6/01


valued automotive retailer.                              the contribution of
                                                         these higher-margin activities, we accomplished
Together, we relentlessly pursued operational
                                                         the following in 2001:
improvements and scale advantages. We reinvested our
cash for higher returns and strengthened our             • Record full-year earnings per share from
balance sheet. We merchandised better and found          continuing operations of $0.87, before certain
faster and more competitive ways to offer the            charges and gains.
repair and maintenance services that only factory-
                                                         • Record earnings before interest, taxes,
authorized stores like ours can provide.
                                                         depreciation and amortization (EBITDA) of
And we capitalized on the strengths that remain unique   $663 million, before certain charges and gains.
AutoNation sold 712,000 new and used vehicles in 2001,


                                                                 We call that vision our Driven to Be the Best focus, which
• A full-year gross margin of 14.4%, up 70 basis points
                                                                 took hold last year as we drove improvements in our
from a year ago.
                                                                 higher-margin areas. This focus is founded on principles
• The repurchase of 7% of our outstanding shares for
                                                                 of operational excellence. When you sell 2,000 vehicles a
$257 million, at an average price of $9.41 per share.
                                                                 day and service 25,000 vehicles a day, operational
• Our first senior note offering, a $450 million issue that      excellence is what ensures your business will grow and
strengthened the make-up of                                                                 your customers will continue
our capital structure and                                                                   to come back to you.
                                 Our Vision
introduced our company to a                                                                This foundation of operational
new audience of investors.                                                                 excellence supports four key
                                                    Customer Focus
                                                                                           pillars of the Driven to Be the
                                                  Information & e-Technology
                                                                                           Best vision. They are:
                             SM


Driven to Be the Best
                                        Superior                Productivity              • Superior Experiences.
                                       Experiences            Improvements
Most significantly,                                                                       We take the wealth of retail
                                                       Scale                 Dominant
in 2001 our company                                                                       knowledge that we possess and
                                                     Advantages               Brands
adopted a cultural mindset                                                                use it to create better
                                                  Operational Excellence
that positioned us for future                                                             experiences for the customer.
growth in earnings and                                                                    These experiences are designed
shareholder returns.                                           to be “hassle-free” and are shaped to drive strong repeat
                                                               and referral business.
As the industry's largest player, we know we have great
stores and talent. But being big isn't enough to remain
                                                                 • Scale Advantages. Because no other automotive
valued in the eyes of both shareholders and customers.
                                                                 retailer has our scale, we have a wealth of opportunities
AutoNation must also be driven in its quest for excellence.
                                                                 to create sustainable competitive advantages.
And we have a vision to get us there.
AutoNation Annual Report 2001




making us America’s largest automotive retailer.


        Already we enjoy lower costs of capital, lower costs for     sense, we've already realized this aspect of our vision by
        employee benefits and preferred relationships with           growing AutoNation into the Web's largest retailer of
        certain vendors that are difficult to match.                 automobiles, selling $1.8 billion worth of vehicles via
                                                                     the Internet in 2001.
        • Productivity Improvements. This probably is the
                                                                     However, while we're proud of our achievements in
        greatest opportunity we have at AutoNation. By
                                                                     2001, we expect to enjoy greater rewards as our Driven
        combining the entrepreneurial talents of our store
                                                                     to Be the Best focus gains further traction in our stores,
        managers with proven best practices, we have found
                                                                     among our associates and throughout the higher-
        better and faster ways to manage our inventories, to
                                                                     margin areas of our business that we've outlined above.
        deliver vehicle services and to present and sell our
        finance and insurance products. These productivity           We thank you for your continued interest and support
        gains go straight to the bottom line and create              in AutoNation and look forward to reporting back
        shareholder value.                                           with more successes.
        • Dominant Brands. We strive to have between                 Sincerely,
        10% and 20% of a market's new vehicle sales each time
        we consolidate our stores behind a local brand name
        such as “John Elway”, “Maroone” or “AutoWay”. By
        comparison, a typical competitor will have a market
        share in the low single digits. With that kind of
        advantage, we believe customers in these markets won't
        be able to make an intelligent buying decision without
        considering one of our stores.
                                                                     H. Wayne Huizenga   Mike Jackson            Mike Maroone
        Finally, this Driven to Be the Best vision is supported by   Chairman            Chief Executive Officer President &
                                                                                                                 Chief Operating Officer
        the wise use of information and e-technology. In this
PARTS AND SERVICE
                                                                  Guarantees
       When Super Bowl MVP John Elway represents our                         Price.
       “John Elway” brand in Denver and our “Desert” brand                   Service.
       in Las Vegas, he often promotes our dealerships’ vehicle              Selection.
       services. With 8,000 service bays, AutoNation is
       America's largest provider of factory-authorized vehicle
       maintenance and repair services.



                                                                        at John Elway
                                                                        it’s GUARANTEED.




                                                   Driven to be
                                                    NEW AND USED
                                                    VEHICLE SALES

                                                 With 35 different brands of vehicles
                                               to offer across 371 retail franchises,
                                             we sell more new and used vehicles than
                                            any other retailer.


NFL legend Dan
Marino speaks
for three of our
local market
brands –
“Maroone” in
South Florida,
“AutoWay” in
Tampa Bay and
“Courtesy” in
Orlando.
AutoNation Annual Report 2001




the best      SM



 Across
 our markets,
 our franchises,   e-COMMERCE

 in every way       Our in-store Internet Sales Guides sold $1.8 billion
                    worth of new and used vehicles to shoppers they
 we serve           met via the Internet. Through our websites, we
 customers…         offer an online inventory of more than 100,000
                    vehicles, each with an everyday low price.


                        FINANCE AND INSURANCE
                            Customers seeking vehicle financing
                            can count on AutoNation for help. Our
                            stores have relationships with all the
                            major lenders, making one-stop shopping
                            for financing easy. We also promote an
                            easy-to-understand quot;menuquot; sales process
                            that details a customer's payment options.
AutoNation AUTOMOTIVE RETAIL FRANCHISES: 371
(as of March 15, 2002)


ALABAMA (7)
Miller-Sutherlin Chevrolet of Pell City
Miller-Sutherlin Chrysler of Pell City
Miller-Sutherlin Dodge of Pell City
Miller-Sutherlin Jeep of Pell City
Miller-Sutherlin Pontiac of Pell City
Treadwell Ford of Mobile
Treadwell Honda of Mobile

ARIZONA (20)
Brown & Brown Chevrolet of Mesa
Brown & Brown Chevrolet of Superstition Springs
Brown & Brown Nissan of Mesa
Brown & Brown Nissan of Tempe
Dobbs Honda of Tucson
Lou Grubb Chevrolet of Peoria-Arrowhead
Lou Grubb Chevrolet of Phoenix
Lou Grubb Chrysler of Phoenix                     Lew Webb's Irvine Nissan
Lou Grubb Dodge of North Phoenix                  Lew Webb's Irvine Toyota
Lou Grubb Ford of Scottsdale                      Lexus of Cerritos
Lou Grubb Jeep of Phoenix                         Magic Ford of Valencia
Pitre Buick of Scottsdale                         Magic Lincoln-Mercury of Valencia
Pitre Chrysler of Scottsdale                      Mercedes-Benz of South Bay
Pitre GMC of Scottsdale                           Newport Audi of Newport Beach
Pitre Hyundai of Scottsdale                       Newport Chevrolet of Newport Beach
Pitre Isuzu of Scottsdale                         Newport Porsche of Newport Beach
Pitre Jeep of Scottsdale                          Newport Rolls Royce of Newport Beach
Pitre Pontiac of Scottsdale                       Nissan of El Monte
Pitre Subaru of Scottsdale                        Ontario Dodge
Tempe Toyota                                      Ontario Isuzu
                                                  Ontario Kia
                                                  Peyton Cramer Ford of Torrance
CALIFORNIA (85)                                   Peyton Cramer Infiniti of Torrance
Acura of South Bay                                Peyton Cramer Lincoln-Mercury of Torrance
Allison BMW of Mountain View                      Peyton Cramer Volkswagen of Torrance
Anderson Chevrolet of Cupertino                   Redlands Ford
Anderson Chevrolet of Los Gatos                   Roseville BMW
Anderson Chevrolet of Menlo Park                  Roseville Buick
Anderson Chrysler of Cupertino                    Roseville GMC
AutoWest Chrysler of Fremont                      Roseville Mazda
AutoWest Chrysler of Roseville                    Roseville Oldsmobile
AutoWest Dodge of Fremont                         Roseville Subaru                            John Elway Hyundai of Westminster        Courtesy Chevrolet of Orlando-Airport
AutoWest Dodge of Roseville                       Shamrock Ford of Dublin                                                              Courtesy Chrysler of Casselberry
                                                                                              John Elway Jeep of Golden
AutoWest Honda of Fremont                         Smythe European Mercedes-Benz of San Jose                                            Courtesy Chrysler of Orlando
                                                                                              John Elway Jeep of Littleton-Broadway
AutoWest Honda of Roseville                       Smythe European Volvo of San Jose                                                    Courtesy Ford of Sanford
                                                                                              John Elway Lamborghini of Golden
AutoWest Isuzu of Fremont                         South Bay Volvo                                                                      Courtesy GMC of Longwood
                                                                                              John Elway Mazda of Westminster
AutoWest Jeep of Roseville                        Stevens Creek Acura of Santa Clara                                                   Courtesy Honda of Longwood
                                                                                              John Elway Nissan of Englewood
AutoWest Mitsubishi of Fremont                    Torrance Nissan                                                                      Courtesy Jeep of Casselberry
                                                                                              John Elway Nissan of Westminster
Beach City Chevrolet of Long Beach                Toyota of Buena Park                                                                 Courtesy Jeep of Orlando
                                                                                              John Elway Pontiac of Golden
Champion Chevrolet of Manhattan Beach             Toyota of Cerritos                                                                   Courtesy Oldsmobile of Orlando
                                                                                              John Elway Pontiac of Lone Tree
Champion Oldsmobile of Manhattan Beach            Valencia BMW                                                                         Courtesy Pontiac of Longwood
                                                                                              John Elway Subaru of Englewood
Chevrolet of El Monte                             Valencia Chevrolet                                                                   Courtesy Toyota of Winter Park
                                                                                              John Elway Subaru of Golden
Corona Chevrolet                                  Valencia Chrysler                                                                    Lexus of Clearwater and Tampa Bay
                                                                                              John Elway Toyota of Englewood
Corona Oldsmobile                                 Valencia Dodge                                                                       Lexus of Palm Beach
Corona Volkswagen                                 Valencia Honda                                                                       Maroone Chevrolet of Delray
Costa Mesa Honda                                                                              FLORIDA (73)
                                                  Valencia Jeep                                                                        Maroone Chevrolet of Fort Lauderdale
Costa Mesa Infiniti                                                                           AutoWay Chevrolet of Clearwater          Maroone Chevrolet of Greenacres
                                                  Volvo Cerritos
Don-A-Vee Chrysler of Placentia                                                               AutoWay Chevrolet of Tampa               Maroone Chevrolet of Miami
                                                  Volvo Irvine
Don-A-Vee Isuzu of Placentia                                                                                                           Maroone Chevrolet of Pembroke Pines
                                                                                              AutoWay Dodge of Clearwater
Don-A-Vee Jeep of Bellflower                                                                                                           Maroone Chevrolet of West Dade
                                                                                              AutoWay Ford of Bradenton
Don-A-Vee Jeep of Placentia                                                                                                            Maroone Chrysler of Coconut Creek
                                                                                              AutoWay Ford of Brooksville
                                                  COLORADO (26)
Don-A-Vee Suzuki of Bellflower                                                                                                         Maroone Dodge of Delray
                                                                                              AutoWay Ford of St. Petersburg
                                                  Courtesy Ford of Littleton
Don-A-Vee Suzuki of Placentia                                                                                                          Maroone Dodge of Miami
                                                                                              AutoWay GMC Truck of Clearwater
                                                  John Elway Buick of Golden
Ford of Garden Grove                                                                                                                   Maroone Dodge of Pembroke Pines
                                                                                              AutoWay GMC Truck of Port Richey
                                                  John Elway Buick of Lone Tree
Hayward Dodge                                                                                                                          Maroone Ford of Delray
                                                                                              AutoWay Honda of Clearwater
                                                  John Elway Chevrolet of Denver
Hayward Hyundai                                                                                                                        Maroone Ford of Fort Lauderdale
                                                                                              AutoWay Lincoln-Mercury of Brooksville
                                                  John Elway Chrysler of Golden
                                                                                                                                       Maroone Ford of Margate
Hayward Nissan                                                                                AutoWay Lincoln-Mercury of Clearwater
                                                  John Elway Chrysler of Littleton-Broadway
                                                                                                                                       Maroone Ford of Miami
Hayward Toyota                                                                                AutoWay Nissan of Clearwater
                                                  John Elway Dodge of Denver
                                                                                                                                       Maroone Honda of Hollywood
House of Imports (Mercedes-Benz) of Buena Park                                                AutoWay Pontiac of Clearwater
                                                  John Elway Dodge of Englewood-Arapahoe
                                                                                                                                       Maroone Honda of Miami
Huntington Beach Ford                                                                         AutoWay Pontiac of Port Richey
                                                  John Elway Ford of Boulder
                                                                                                                                       Maroone Jeep of Coconut Creek
Infiniti of Santa Monica                                                                      AutoWay Toyota of Pinellas Park
                                                  John Elway Ford of Denver
                                                                                                                                       Maroone Kia of Hollywood
Jaguar of South Bay                                                                           Coastal Cadillac of Port Richey
                                                  John Elway Ford of Wheat Ridge
                                                                                                                                       Maroone Lincoln-Mercury North Palm
Joe MacPherson Chevrolet of Irvine                                                            Cook-Whitehead Ford of Panama City
                                                  John Elway GMC of Golden
                                                                                                                                       Maroone Nissan of Delray
Joe MacPherson Ford of Tustin                                                                 Courtesy Acura of Longwood
                                                  John Elway GMC of Lone Tree
                                                                                                                                       Maroone Nissan of Fort Lauderdale
Joe MacPherson Infiniti of Tustin                                                             Courtesy Buick of Longwood
                                                  John Elway Honda of Westminster
                                                                                                                                       Maroone Nissan of Miami
Land Rover of Encino                                                                          Courtesy Chevrolet of Orlando
Land Rover of South Bay
AutoNation Annual Report 2001




           Markets with 5 or more                                                                                                   TEXAS (59)
                                                                                                                                    AutoNation Dodge of Grand Prairie
                                                                                                                                    AutoNation Dodge of Irving
           AutoNation franchises                                                                                                    Bankston Chrysler of Frisco
                                                                                                                                    Bankston Ford of Frisco
                                                                                                                                    Bankston Jeep of Frisco
                                                                                                                                    Bankston Lincoln-Mercury of Dallas
                                                                                                                                    Bankston Nissan of Dallas
                                                                                                                                    Bankston Nissan of Irving
                                                                                                                                    Bankston Nissan of Lewisville
                                                                                                                                    Bledsoe Dodge of Dallas-Duncanville South
                                                                                                                                    Bledsoe Dodge North of Dallas
                                                                                                                                    BMW of Houston North
                                                                                                                                    Champion Buick of Corpus Christi
                                                                                                                                    Champion Chevrolet of Houston
                                                                                                                                    Champion Chevrolet Texas of Austin
                                                                                                                                    Champion Chrysler of Austin
                                                                                                                                    Champion Ford of Houston
                                                                                                                                    Champion GMC of Austin
                                                                                                                                    Champion GMC of Corpus Christi
                                                                                                                                    Champion Hyundai of Austin
                                                                                                                                    Champion Jeep of Austin
                                                                                                                                    Champion Pontiac of Austin
                                                                                            MICHIGAN (2)
                                                                                                                                    Champion Pontiac of Corpus Christi
                                                                                            Taylor Chrysler
                                                                                                                                    Champion Toyota of Austin
                                                                                            Taylor Jeep
                                                                                                                                    Charlie Hillard Buick of Fort Worth
                                                                                                                                    Charlie Hillard Ford of Fort Worth
                                                                                                                                    Charlie Hillard Mazda of Fort Worth
                                                                                            MINNESOTA (1)
                                                                                                                                    Charlie Thomas Acura of Houston
                                                                                            Tousley Ford of White Bear Lake
                                                                                                                                    Charlie Thomas Chevrolet of Houston
                                                                                                                                    Charlie Thomas Chrysler of Houston
                                                                                                                                    Charlie Thomas Ford of Houston
                                                                                            NORTH CAROLINA (1)
                                                                                                                                    Charlie Thomas Hyundai of Houston
                                                                                            Superior Nissan of Charlotte
                                                                                                                                    Charlie Thomas Jeep of Houston
                                                                                                                                    Charlie Thomas Isuzu of Houston
                                                                                                                                    Charlie Thomas Mitsubishi of Houston
                                                                                            NEVADA (15)
                                                                                                                                    Cleburne Ford
                                                                                            Desert Audi of Las Vegas
                                                                                                                                    County Line Ford of Burleson
                                                                                            Desert BMW of Henderson and Las Vegas
                                                                                                                                    Hudiburg Chevrolet of North Richland Hills
                                                                                            Desert Buick of Henderson
                                                                                                                                    Jay Marks Toyota of Houston
                                                                                            Desert Buick of Las Vegas
                                                                                                                                    Ken Nichols Ford of Fort Worth
                                                                                            Desert Chrysler of Las Vegas
                                                                                                                                    Les Marks Chevrolet of La Porte
                                                                                            Desert Dodge of Las Vegas
                                                                                                                                    Les Marks Mazda of La Porte
                                                                                            Desert GMC of Henderson
                                                                                                                                    Mercedes-Benz of Houston Greenway
                                                                                            Desert GMC of Las Vegas
                                                                                                                                    Mercedes-Benz of Houston North
                                                                                            Desert Honda of Las Vegas
                                                                                                                                    Midway Chevrolet of Amarillo
Maroone Nissan of Pembroke Pines                Team Nissan of Lithia Springs               Desert Jeep of Las Vegas
                                                                                                                                    Padre Ford of Corpus Christi
Maroone Nissan of Perrine                       Team Nissan of Marietta                     Desert Lincoln-Mercury of Las Vegas
                                                                                                                                    Padre Mazda of Corpus Christi
Maroone Oldsmobile of Pembroke Pines            Team Pontiac of Union City                  Desert Nissan of Las Vegas
                                                                                                                                    Payton Wright Ford of Grapevine
Maroone Isuzu of Pembroke Pines                 Team Toyota of Lithia Springs               Desert Pontiac of Henderson
                                                                                                                                    Plains Chevrolet of Amarillo
Maroone Toyota of Davie                                                                     Desert Toyota of Las Vegas
                                                                                                                                    Port City Imports Honda of Corpus Christi
Mercedes-Benz of Fort Lauderdale                                                            Desert Volkswagen of Las Vegas
                                                ILLINOIS (18)                                                                       Port City Imports Hyundai of Corpus Christi
Mercedes-Benz of Miami
                                                Dodge World of Des Plaines                                                          Port City Imports Volvo of Corpus Christi
Mercedes-Benz of Orlando
                                                Downers Grove Dodge                                                                 Quality Nissan of Amarillo
Mike Shad Chrysler of Jacksonville-Cassat                                                   NEW YORK (1)
                                                Elmhurst Dodge                                                                      Steakley Chevrolet of Dallas
Mike Shad Chrysler of Jacksonville-Southpoint                                               Al Maroone Ford of Williamsville
                                                Elmhurst Kia                                                                        Texan Ford of Arlington
Mike Shad Ford of Jacksonville-The Avenues
                                                Golf Mill Ford of Niles                                                             Texan Ford of Katy
Mike Shad Ford of Orange Park
                                                Horizon Chevrolet of Naperville                                                     Texan Isuzu of Houston
Mike Shad Jeep of Jacksonville-Cassat                                                       OHIO (9)
                                                Jaguar of Tinley Park                                                               Texan Lincoln-Mercury of Houston
Mike Shad Jeep of Jacksonville-Southpoint                                                   Bob Townsend Ford of Cincinnati
                                                Jerry Gleason Chevrolet of Forest Park                                              Westgate Chevrolet of Amarillo
Nissan of Brandon                                                                           Eastgate Ford of Dayton
                                                Jerry Gleason Dodge of Forest Park
Porsche of North Orlando                                                                    Ed Mullinax Ford of Amherst
                                                Joe Madden Ford of Downers Grove                                                    WASHINGTON (18)
Sunrise Nissan of Jacksonville                                                              John Lance Ford of Westlake
                                                Laurel Audi of Tinley Park                                                          Appleway Audi of Spokane
Sunrise Nissan of Orange Park                                                               Mullinax Ford of North Canton
                                                Laurel Audi of Westmont                                                             Appleway Chevrolet of Spokane
                                                                                            Mullinax Ford of Wickliffe
                                                Laurel BMW of Westmont                                                              Appleway Mazda of Spokane
                                                                                            Mullinax Jeep of Mayfield
                                                Laurel Motors (Mercedes-Benz) of Westmont                                           Appleway Mitsubishi of Spokane
GEORGIA (18)                                                                                Mullinax Lincoln-Mercury of Brunswick
                                                Laurel Volvo of Tinley Park                                                         Appleway Subaru of Spokane
Gene Evans Team Ford of Union City                                                          Mullinax Lincoln-Mercury of Mayfield
                                                Libertyville Toyota                                                                 Appleway Toyota of Spokane
Team Buick of Union City
                                                Mercedes-Benz of Naperville                                                         Appleway Volkswagen of Spokane
Team Chevrolet of Alpharetta-Northpoint
                                                Woodfield Ford of Schaumburg                                                        BMW of Bellevue
Team Chrysler of Lithia Springs                                                             TENNESSEE (10)
                                                                                                                                    Dodge of Bellevue
Team Dodge of Stone Mountain                                                                Dobbs Ford of Memphis-Mt. Moriah
                                                                                                                                    Ford of Kirkland
Team Dodge of Union City                                                                    Dobbs Ford of Memphis-Wolfchase
                                                MARYLAND (8)
                                                                                                                                    Kirkland Buick
Team Ford of Alpharetta-Northpoint                                                          Dobbs GMC of Memphis
                                                Fox Buick of Laurel
                                                                                                                                    Kirkland GMC
Team Ford of Atlanta                                                                        Dobbs Honda on Memphis-Mendenhall
                                                Fox Chevrolet of Baltimore
                                                                                                                                    Kirkland Pontiac
Team Ford of Marietta                                                                       Dobbs Honda of Memphis-Covington Pike
                                                Fox Chevrolet of Laurel
                                                                                                                                    Northwest Nissan of Lynwood
Team GMC of Union City                                                                      Dobbs Mazda of Memphis
                                                Fox Chevrolet of Timonium
                                                                                                                                    Prestige Ford of Bellevue
Team Honda of Lithia Springs                                                                Dobbs Mitsubishi of Memphis
                                                Fox GMC of Laurel
                                                                                                                                    Town & Country Chrysler of Seattle
Team Jeep of Lithia Springs                                                                 Dobbs Nissan of Memphis
                                                Fox Isuzu of Laurel
                                                                                                                                    Town & Country Jeep of Seattle
Team Mitsubishi of Lithia Springs                                                           Dobbs Pontiac of Memphis
                                                Fox Mitsubishi of Baltimore
                                                                                                                                    Town & Country Nissan of Seattle
Team Mitsubishi of Roswell-Northpoint                                                       West Side Honda of Knoxville
                                                Fox Pontiac of Laurel
AutoNation BOARD OF DIRECTORS
                                                                                                  AutoNation
                                                                                                  Senior Management
                                                                                                  Mike Jackson
                                                                                                  Chief Executive Officer

                                                                                                  Michael E. Maroone
                                                                                                  President, Chief Operating Officer
                                                                   Harris W. Hudson
   H. Wayne Huizenga            Mike Jackson
                                                                                                  Craig T. Monaghan
                                                                   Vice Chairman of the Board
   Chairman of the Board        Chief Executive Officer
                                                                                                  Senior Vice President, Chief Financial Officer

                                                                                                  Thomas S. Butler
                                                                                                  Senior Vice President
                                                                                                  Corporate Development

                                                                                                  John R. Drury
                                                                                                  Senior Vice President
                                                                                                  Marketing

                                                                                                  Robert F. Dwors
                                J. P. Bryan 1, 2                   Rick L. Burdick 1
   Robert J. Brown
                                                                                                  Senior Vice President
   Chairman & Chief             Senior Managing Director           Partner
                                                                                                  Corporate Real Estate Services
   Executive Officer            Torch Energy Advisors, Inc.        Akin, Gump, Strauss,
   B&C Associates, Inc.         (an outsourcing and service        Hauer & Feld, L.L.P.
                                                                                                  James D. Evans, Jr.
   (a management consulting     provider to the oil and            (a law firm)
                                                                                                  Senior Vice President
   and public relations firm)   gas industry)
                                                                                                  New Vehicles

                                                                                                  Jonathan P. Ferrando
                                                                                                  Senior Vice President, General Counsel
                                                                                                  & Secretary

                                                                                                  Patricia A. McKay
                                                                                                  Senior Vice President
                                                                                                  Finance

                                                                                                  Peter C. Smith
   William C. Crowley 1                                            George D. Johnson, Jr. 2
                                Michael G. DeGroote                                               Senior Vice President
                                Chairman
   President &                                                     Chief Executive Officer        Human Resources
                                Century Business
   Chief Operating Officer                                         Extended Stay America, Inc.
                                Services, Inc.
   ESL Investments, Inc.                                           (an economy extended stay      Allan D. Stejskal
                                (a provider of professional
   (an investment firm)                                            lodging chain)                 Senior Vice President
                                business services and                                             Operations
                                products)
                                                                                                  Kevin P. Westfall
                                                                                                  Senior Vice President
                                                                                                  Finance & Insurance




                                                                                                  Board Committees
                                                                                                  1 Audit Committee
                                John J. Melk 1                     Irene B. Rosenfeld 1, 2
   Edward S. Lampert 2
   Chairman &                   Chairman & Chief Executive         Group Vice President           2 Compensation and Nominating Committee
   Chief Executive Officer      Officer                            Kraft Foods, Inc.;
   ESL Investments, Inc.        Fisher Island Holdings, LLC        President-Operations,
   (an investment firm)         (developer of residential resort   Research & Development and
                                properties )                       Information Systems, Kraft
                                                                   Canada, Mexico & Puerto
                                                                   Rico (a manufacturer and
                                                                   distributor of packaged food
                                                                   and food service products)
AutoNation Annual Report 2001




Corporate INFORMATION

Headquarters                                                      Common Stock Transfer Agent and Registrar
AutoNation, Inc.                                                  For inquiries regarding address changes, stock transfers,
110 S.E. 6th Street, Fort Lauderdale, FL 33301                    lost shares or other account matters, please contact:
Telephone: (954) 769-7000 • www.AutoNation.com
                                                                  Computershare Investor Services, LLC
                                                                  P.O. Box 1689, Chicago, IL 60690-1689
Investor Contact and Information Requests
Shareholders, securities analysts, portfolio managers and
                                                                  Registered owners of AutoNation common stock may also call
representatives of financial institutions requesting copies of
                                                                  (800) 689-5259, Monday through Friday (9:00 a.m. - 5:00 p.m.
the Annual Report, Form 10-K, quarterly reports and other
                                                                  CST), to inquire about address changes, stock transfers, lost
corporate literature should please call (954) 769-7339 or write
                                                                  shares and other account matters.
AutoNation, Inc., Investor Relations, at the above address.
                                                                  Internet users can access information at
Notice of Annual Meeting                                          http://www.computershare.com.
The Annual Meeting of Shareholders of AutoNation, Inc.
will be held at 9:30 a.m., May 16, 2002, at:                      Independent Certified Public Accountants
                                                                  Arthur Andersen LLP
The Parker Playhouse
                                                                  100 N.E. 3rd Avenue, Fort Lauderdale, FL 33301
707 N.E. 8th Street, Fort Lauderdale, FL 33312
Telephone: (954) 764-1441
                                                                  Forward-looking Statements
Common Stock Information                                          Some of the statements and information contained throughout this
Since April 6, 1999, the Company’s common stock has               Annual Report constitute “forward-looking statements” within the
traded on the New York Stock Exchange (“NYSE”) under              meaning of the Federal Private Securities Litigation Reform Act of
the symbol “AN.” From June 20, 1997 through April 5,              1995. The forward-looking statements describe our expectations,
1999, the Company’s common stock traded on the NYSE               plans and intentions about our business, financial condition, results of
under the symbol “RII.”                                           operations, cash flows and prospects. Known and unknown risks,
                                                                  uncertainties and other factors may cause our actual results,
At March 25, 2002, there were approximately 321,200,000           performance, or achievements to be materially different from any
shares of common stock outstanding, held by                       future results, performance, or achievements expressed or implied by
approximately 3,400 shareholders of record.                       the forward-looking statements. We undertake no duty to update or
                                                                  revise our forward-looking statements, whether as a result of new
                                                                  information, future events or otherwise.
AutoNation’s branded markets include:


                   Tampa Bay

                   Houston

                   Orlando

                   Las Vegas

                   Memphis

                   Baltimore

                   Denver

                   South Florida

                   Jacksonville

                   Cleveland

                   Atlanta




            110 S.E. 6th Street, Fort Lauderdale, FL 33301 • www.AutoNation.com

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2001annualreport auto nation

  • 2. Financial HIGHLIGHTS Total Revenue Earnings Before Interest, Diluted Earnings Per Share Taxes, Depreciation from Continuing Operations and Amortization (EBITDA) Billions Millions $20.6 $1.00 $20.1 $20.0 $20 $700 $.91 $692 .90 $.87 $663 $.84 $644 600 .80 $587 $588 $.73 .70 $.66 500 .60 $438 15 400 $.48 .50 .40 $12.7 300 .30 200 .20 10 $110 .10 100 $(.07) 0 0 (.10) 2001 1998 2001 2000 1999 1998 1999 2000 1998 2000 1999 2001 Reported results. Pro forma results.  These results exclude certain charges and gains and are not presented on a basis consistent with generally accepted accounting principles in the United States.  Please refer to page 21 of the attached 2001 Annual Report Form 10-K for a reconciliation of these results to reported figures and to the quot;Management's Discussion and Analysis of Financial Condition and Results of Operationsquot; section of the Form 10-K for further details about these charges and gains. Consolidated Earnings and Balance Sheet Highlights AS OF AND FOR THE YEAR ENDED DECEMBER 31, .. . . . . . . . . . . . . . . . . . . . . . . . . * . . . . . . . . . . . . . . . . . . . . . . . . . 1 .... . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . * See legend above. 12000 figure reflects reclassification of certain items. 2Long-term debt in 1998, 1999 and 2000 includes certain operating leases. 3 Shareholders' equity in 2000 reflects the impact of the tax-free spin-off of the Company's former vehicle rental businesses (ANC Rental Corp.) to AutoNation shareholders. Business DESCRIPTION AutoNation, Inc. is America’s largest retailer of both new and used vehicles. As of March 15, 2002, we owned and operated 371 new vehicle franchises from dealership locations in 17 states, predominantly in the Sunbelt. Each of our automotive franchised dealerships offers a diverse range of automotive products and services beyond new and used vehicles that includes vehicle maintenance and repair services, vehicle parts, extended service contracts, insurance products and other aftermarket products, and each also arranges financing for vehicle purchases through third-party sources. Additionally, we operate collision repair centers in most of our key markets. The vehicles we sell are manufactured by Ford, General Motors, DaimlerChrysler, Toyota, Nissan, Honda and BMW. These manufacturers represent approximately 95% of the new vehicles that we sold in 2001. In total, we offer 35 different brands of new vehicles.
  • 3. AutoNation Annual Report 2001 A letter to SHAREHOLDERS (left to right) Craig T. Monaghan To Our Shareholders: to our brand of pure-play, specialty retailing. Chief Financial Officer 2001 was a year in which we enjoyed successes A great example: In 2001, we drove operational H. Wayne Huizenga Chairman with all of our core constituencies. improvements in the used vehicle, parts and service, and finance and insurance areas of our Mike Jackson Our customers purchased 712,000 new and used Chief Executive Officer automotive franchises. These higher-margin vehicles from us, helping our company become areas offered opportunities that we believed were Michael E. Maroone America's undisputed leader in automotive retail great enough to offset challenges in the U.S. President & for a fifth straight year. Chief Operating Officer new vehicle market last year. On Wall Street, our investors rallied behind And they were. Although collectively accounting AutoNation's solid earnings, cash flow and for about a third of our total revenue, these same-store sales in the face of economic higher-margin areas that are unique to automotive challenges. Their enthusiasm helped generate retail delivered 68% of AutoNation's gross margin more than $2 billion of shareholder value as in 2001, enabling us AutoNation's shares rose 106% and the number of to deliver more AutoNation's Stock Price Rises 106% investment analysts covering the company doubled. store-level profit (Dec. 2000-Dec. 2001) $13.00 Meanwhile, in a Fortune magazine survey released than in 2000. In $12.33 $11.65 $11.60 $11.45 $11.06 this year, industry analysts and peers voted us addition, the $10.85 MONTH-END PRICE PER SHARE $11.00 $10.76 “America's Most Admired Company” in the $10.29 diversity of the 35 $9.00 automotive retailing and services sector, giving vehicle brands we $ 9.00 $8.79 $8.30 AutoNation high marks for its innovative culture, $7.50 sell and of the 20 $ 7.00 quality of management, financial soundness and – major markets we $6.00 most important – for the caliber of its people. operate in made us $ 5.00 even more resilient. Indeed, it was these 30,000 company associates $ 3.00 whom we relied on most last year in our drive to In fact, because of be America's best run, most profitable and most these strengths, and 12/01 12/00 1/01 7/01 8/01 9/01 10/01 11/01 2/01 5/01 3/01 4/01 6/01 valued automotive retailer. the contribution of these higher-margin activities, we accomplished Together, we relentlessly pursued operational the following in 2001: improvements and scale advantages. We reinvested our cash for higher returns and strengthened our • Record full-year earnings per share from balance sheet. We merchandised better and found continuing operations of $0.87, before certain faster and more competitive ways to offer the charges and gains. repair and maintenance services that only factory- • Record earnings before interest, taxes, authorized stores like ours can provide. depreciation and amortization (EBITDA) of And we capitalized on the strengths that remain unique $663 million, before certain charges and gains.
  • 4. AutoNation sold 712,000 new and used vehicles in 2001, We call that vision our Driven to Be the Best focus, which • A full-year gross margin of 14.4%, up 70 basis points took hold last year as we drove improvements in our from a year ago. higher-margin areas. This focus is founded on principles • The repurchase of 7% of our outstanding shares for of operational excellence. When you sell 2,000 vehicles a $257 million, at an average price of $9.41 per share. day and service 25,000 vehicles a day, operational • Our first senior note offering, a $450 million issue that excellence is what ensures your business will grow and strengthened the make-up of your customers will continue our capital structure and to come back to you. Our Vision introduced our company to a This foundation of operational new audience of investors. excellence supports four key Customer Focus pillars of the Driven to Be the Information & e-Technology Best vision. They are: SM Driven to Be the Best Superior Productivity • Superior Experiences. Experiences Improvements Most significantly, We take the wealth of retail Scale Dominant in 2001 our company knowledge that we possess and Advantages Brands adopted a cultural mindset use it to create better Operational Excellence that positioned us for future experiences for the customer. growth in earnings and These experiences are designed shareholder returns. to be “hassle-free” and are shaped to drive strong repeat and referral business. As the industry's largest player, we know we have great stores and talent. But being big isn't enough to remain • Scale Advantages. Because no other automotive valued in the eyes of both shareholders and customers. retailer has our scale, we have a wealth of opportunities AutoNation must also be driven in its quest for excellence. to create sustainable competitive advantages. And we have a vision to get us there.
  • 5. AutoNation Annual Report 2001 making us America’s largest automotive retailer. Already we enjoy lower costs of capital, lower costs for sense, we've already realized this aspect of our vision by employee benefits and preferred relationships with growing AutoNation into the Web's largest retailer of certain vendors that are difficult to match. automobiles, selling $1.8 billion worth of vehicles via the Internet in 2001. • Productivity Improvements. This probably is the However, while we're proud of our achievements in greatest opportunity we have at AutoNation. By 2001, we expect to enjoy greater rewards as our Driven combining the entrepreneurial talents of our store to Be the Best focus gains further traction in our stores, managers with proven best practices, we have found among our associates and throughout the higher- better and faster ways to manage our inventories, to margin areas of our business that we've outlined above. deliver vehicle services and to present and sell our finance and insurance products. These productivity We thank you for your continued interest and support gains go straight to the bottom line and create in AutoNation and look forward to reporting back shareholder value. with more successes. • Dominant Brands. We strive to have between Sincerely, 10% and 20% of a market's new vehicle sales each time we consolidate our stores behind a local brand name such as “John Elway”, “Maroone” or “AutoWay”. By comparison, a typical competitor will have a market share in the low single digits. With that kind of advantage, we believe customers in these markets won't be able to make an intelligent buying decision without considering one of our stores. H. Wayne Huizenga Mike Jackson Mike Maroone Finally, this Driven to Be the Best vision is supported by Chairman Chief Executive Officer President & Chief Operating Officer the wise use of information and e-technology. In this
  • 6. PARTS AND SERVICE Guarantees When Super Bowl MVP John Elway represents our Price. “John Elway” brand in Denver and our “Desert” brand Service. in Las Vegas, he often promotes our dealerships’ vehicle Selection. services. With 8,000 service bays, AutoNation is America's largest provider of factory-authorized vehicle maintenance and repair services. at John Elway it’s GUARANTEED. Driven to be NEW AND USED VEHICLE SALES With 35 different brands of vehicles to offer across 371 retail franchises, we sell more new and used vehicles than any other retailer. NFL legend Dan Marino speaks for three of our local market brands – “Maroone” in South Florida, “AutoWay” in Tampa Bay and “Courtesy” in Orlando.
  • 7. AutoNation Annual Report 2001 the best SM Across our markets, our franchises, e-COMMERCE in every way Our in-store Internet Sales Guides sold $1.8 billion worth of new and used vehicles to shoppers they we serve met via the Internet. Through our websites, we customers… offer an online inventory of more than 100,000 vehicles, each with an everyday low price. FINANCE AND INSURANCE Customers seeking vehicle financing can count on AutoNation for help. Our stores have relationships with all the major lenders, making one-stop shopping for financing easy. We also promote an easy-to-understand quot;menuquot; sales process that details a customer's payment options.
  • 8. AutoNation AUTOMOTIVE RETAIL FRANCHISES: 371 (as of March 15, 2002) ALABAMA (7) Miller-Sutherlin Chevrolet of Pell City Miller-Sutherlin Chrysler of Pell City Miller-Sutherlin Dodge of Pell City Miller-Sutherlin Jeep of Pell City Miller-Sutherlin Pontiac of Pell City Treadwell Ford of Mobile Treadwell Honda of Mobile ARIZONA (20) Brown & Brown Chevrolet of Mesa Brown & Brown Chevrolet of Superstition Springs Brown & Brown Nissan of Mesa Brown & Brown Nissan of Tempe Dobbs Honda of Tucson Lou Grubb Chevrolet of Peoria-Arrowhead Lou Grubb Chevrolet of Phoenix Lou Grubb Chrysler of Phoenix Lew Webb's Irvine Nissan Lou Grubb Dodge of North Phoenix Lew Webb's Irvine Toyota Lou Grubb Ford of Scottsdale Lexus of Cerritos Lou Grubb Jeep of Phoenix Magic Ford of Valencia Pitre Buick of Scottsdale Magic Lincoln-Mercury of Valencia Pitre Chrysler of Scottsdale Mercedes-Benz of South Bay Pitre GMC of Scottsdale Newport Audi of Newport Beach Pitre Hyundai of Scottsdale Newport Chevrolet of Newport Beach Pitre Isuzu of Scottsdale Newport Porsche of Newport Beach Pitre Jeep of Scottsdale Newport Rolls Royce of Newport Beach Pitre Pontiac of Scottsdale Nissan of El Monte Pitre Subaru of Scottsdale Ontario Dodge Tempe Toyota Ontario Isuzu Ontario Kia Peyton Cramer Ford of Torrance CALIFORNIA (85) Peyton Cramer Infiniti of Torrance Acura of South Bay Peyton Cramer Lincoln-Mercury of Torrance Allison BMW of Mountain View Peyton Cramer Volkswagen of Torrance Anderson Chevrolet of Cupertino Redlands Ford Anderson Chevrolet of Los Gatos Roseville BMW Anderson Chevrolet of Menlo Park Roseville Buick Anderson Chrysler of Cupertino Roseville GMC AutoWest Chrysler of Fremont Roseville Mazda AutoWest Chrysler of Roseville Roseville Oldsmobile AutoWest Dodge of Fremont Roseville Subaru John Elway Hyundai of Westminster Courtesy Chevrolet of Orlando-Airport AutoWest Dodge of Roseville Shamrock Ford of Dublin Courtesy Chrysler of Casselberry John Elway Jeep of Golden AutoWest Honda of Fremont Smythe European Mercedes-Benz of San Jose Courtesy Chrysler of Orlando John Elway Jeep of Littleton-Broadway AutoWest Honda of Roseville Smythe European Volvo of San Jose Courtesy Ford of Sanford John Elway Lamborghini of Golden AutoWest Isuzu of Fremont South Bay Volvo Courtesy GMC of Longwood John Elway Mazda of Westminster AutoWest Jeep of Roseville Stevens Creek Acura of Santa Clara Courtesy Honda of Longwood John Elway Nissan of Englewood AutoWest Mitsubishi of Fremont Torrance Nissan Courtesy Jeep of Casselberry John Elway Nissan of Westminster Beach City Chevrolet of Long Beach Toyota of Buena Park Courtesy Jeep of Orlando John Elway Pontiac of Golden Champion Chevrolet of Manhattan Beach Toyota of Cerritos Courtesy Oldsmobile of Orlando John Elway Pontiac of Lone Tree Champion Oldsmobile of Manhattan Beach Valencia BMW Courtesy Pontiac of Longwood John Elway Subaru of Englewood Chevrolet of El Monte Valencia Chevrolet Courtesy Toyota of Winter Park John Elway Subaru of Golden Corona Chevrolet Valencia Chrysler Lexus of Clearwater and Tampa Bay John Elway Toyota of Englewood Corona Oldsmobile Valencia Dodge Lexus of Palm Beach Corona Volkswagen Valencia Honda Maroone Chevrolet of Delray Costa Mesa Honda FLORIDA (73) Valencia Jeep Maroone Chevrolet of Fort Lauderdale Costa Mesa Infiniti AutoWay Chevrolet of Clearwater Maroone Chevrolet of Greenacres Volvo Cerritos Don-A-Vee Chrysler of Placentia AutoWay Chevrolet of Tampa Maroone Chevrolet of Miami Volvo Irvine Don-A-Vee Isuzu of Placentia Maroone Chevrolet of Pembroke Pines AutoWay Dodge of Clearwater Don-A-Vee Jeep of Bellflower Maroone Chevrolet of West Dade AutoWay Ford of Bradenton Don-A-Vee Jeep of Placentia Maroone Chrysler of Coconut Creek AutoWay Ford of Brooksville COLORADO (26) Don-A-Vee Suzuki of Bellflower Maroone Dodge of Delray AutoWay Ford of St. Petersburg Courtesy Ford of Littleton Don-A-Vee Suzuki of Placentia Maroone Dodge of Miami AutoWay GMC Truck of Clearwater John Elway Buick of Golden Ford of Garden Grove Maroone Dodge of Pembroke Pines AutoWay GMC Truck of Port Richey John Elway Buick of Lone Tree Hayward Dodge Maroone Ford of Delray AutoWay Honda of Clearwater John Elway Chevrolet of Denver Hayward Hyundai Maroone Ford of Fort Lauderdale AutoWay Lincoln-Mercury of Brooksville John Elway Chrysler of Golden Maroone Ford of Margate Hayward Nissan AutoWay Lincoln-Mercury of Clearwater John Elway Chrysler of Littleton-Broadway Maroone Ford of Miami Hayward Toyota AutoWay Nissan of Clearwater John Elway Dodge of Denver Maroone Honda of Hollywood House of Imports (Mercedes-Benz) of Buena Park AutoWay Pontiac of Clearwater John Elway Dodge of Englewood-Arapahoe Maroone Honda of Miami Huntington Beach Ford AutoWay Pontiac of Port Richey John Elway Ford of Boulder Maroone Jeep of Coconut Creek Infiniti of Santa Monica AutoWay Toyota of Pinellas Park John Elway Ford of Denver Maroone Kia of Hollywood Jaguar of South Bay Coastal Cadillac of Port Richey John Elway Ford of Wheat Ridge Maroone Lincoln-Mercury North Palm Joe MacPherson Chevrolet of Irvine Cook-Whitehead Ford of Panama City John Elway GMC of Golden Maroone Nissan of Delray Joe MacPherson Ford of Tustin Courtesy Acura of Longwood John Elway GMC of Lone Tree Maroone Nissan of Fort Lauderdale Joe MacPherson Infiniti of Tustin Courtesy Buick of Longwood John Elway Honda of Westminster Maroone Nissan of Miami Land Rover of Encino Courtesy Chevrolet of Orlando Land Rover of South Bay
  • 9. AutoNation Annual Report 2001 Markets with 5 or more TEXAS (59) AutoNation Dodge of Grand Prairie AutoNation Dodge of Irving AutoNation franchises Bankston Chrysler of Frisco Bankston Ford of Frisco Bankston Jeep of Frisco Bankston Lincoln-Mercury of Dallas Bankston Nissan of Dallas Bankston Nissan of Irving Bankston Nissan of Lewisville Bledsoe Dodge of Dallas-Duncanville South Bledsoe Dodge North of Dallas BMW of Houston North Champion Buick of Corpus Christi Champion Chevrolet of Houston Champion Chevrolet Texas of Austin Champion Chrysler of Austin Champion Ford of Houston Champion GMC of Austin Champion GMC of Corpus Christi Champion Hyundai of Austin Champion Jeep of Austin Champion Pontiac of Austin MICHIGAN (2) Champion Pontiac of Corpus Christi Taylor Chrysler Champion Toyota of Austin Taylor Jeep Charlie Hillard Buick of Fort Worth Charlie Hillard Ford of Fort Worth Charlie Hillard Mazda of Fort Worth MINNESOTA (1) Charlie Thomas Acura of Houston Tousley Ford of White Bear Lake Charlie Thomas Chevrolet of Houston Charlie Thomas Chrysler of Houston Charlie Thomas Ford of Houston NORTH CAROLINA (1) Charlie Thomas Hyundai of Houston Superior Nissan of Charlotte Charlie Thomas Jeep of Houston Charlie Thomas Isuzu of Houston Charlie Thomas Mitsubishi of Houston NEVADA (15) Cleburne Ford Desert Audi of Las Vegas County Line Ford of Burleson Desert BMW of Henderson and Las Vegas Hudiburg Chevrolet of North Richland Hills Desert Buick of Henderson Jay Marks Toyota of Houston Desert Buick of Las Vegas Ken Nichols Ford of Fort Worth Desert Chrysler of Las Vegas Les Marks Chevrolet of La Porte Desert Dodge of Las Vegas Les Marks Mazda of La Porte Desert GMC of Henderson Mercedes-Benz of Houston Greenway Desert GMC of Las Vegas Mercedes-Benz of Houston North Desert Honda of Las Vegas Midway Chevrolet of Amarillo Maroone Nissan of Pembroke Pines Team Nissan of Lithia Springs Desert Jeep of Las Vegas Padre Ford of Corpus Christi Maroone Nissan of Perrine Team Nissan of Marietta Desert Lincoln-Mercury of Las Vegas Padre Mazda of Corpus Christi Maroone Oldsmobile of Pembroke Pines Team Pontiac of Union City Desert Nissan of Las Vegas Payton Wright Ford of Grapevine Maroone Isuzu of Pembroke Pines Team Toyota of Lithia Springs Desert Pontiac of Henderson Plains Chevrolet of Amarillo Maroone Toyota of Davie Desert Toyota of Las Vegas Port City Imports Honda of Corpus Christi Mercedes-Benz of Fort Lauderdale Desert Volkswagen of Las Vegas ILLINOIS (18) Port City Imports Hyundai of Corpus Christi Mercedes-Benz of Miami Dodge World of Des Plaines Port City Imports Volvo of Corpus Christi Mercedes-Benz of Orlando Downers Grove Dodge Quality Nissan of Amarillo Mike Shad Chrysler of Jacksonville-Cassat NEW YORK (1) Elmhurst Dodge Steakley Chevrolet of Dallas Mike Shad Chrysler of Jacksonville-Southpoint Al Maroone Ford of Williamsville Elmhurst Kia Texan Ford of Arlington Mike Shad Ford of Jacksonville-The Avenues Golf Mill Ford of Niles Texan Ford of Katy Mike Shad Ford of Orange Park Horizon Chevrolet of Naperville Texan Isuzu of Houston Mike Shad Jeep of Jacksonville-Cassat OHIO (9) Jaguar of Tinley Park Texan Lincoln-Mercury of Houston Mike Shad Jeep of Jacksonville-Southpoint Bob Townsend Ford of Cincinnati Jerry Gleason Chevrolet of Forest Park Westgate Chevrolet of Amarillo Nissan of Brandon Eastgate Ford of Dayton Jerry Gleason Dodge of Forest Park Porsche of North Orlando Ed Mullinax Ford of Amherst Joe Madden Ford of Downers Grove WASHINGTON (18) Sunrise Nissan of Jacksonville John Lance Ford of Westlake Laurel Audi of Tinley Park Appleway Audi of Spokane Sunrise Nissan of Orange Park Mullinax Ford of North Canton Laurel Audi of Westmont Appleway Chevrolet of Spokane Mullinax Ford of Wickliffe Laurel BMW of Westmont Appleway Mazda of Spokane Mullinax Jeep of Mayfield Laurel Motors (Mercedes-Benz) of Westmont Appleway Mitsubishi of Spokane GEORGIA (18) Mullinax Lincoln-Mercury of Brunswick Laurel Volvo of Tinley Park Appleway Subaru of Spokane Gene Evans Team Ford of Union City Mullinax Lincoln-Mercury of Mayfield Libertyville Toyota Appleway Toyota of Spokane Team Buick of Union City Mercedes-Benz of Naperville Appleway Volkswagen of Spokane Team Chevrolet of Alpharetta-Northpoint Woodfield Ford of Schaumburg BMW of Bellevue Team Chrysler of Lithia Springs TENNESSEE (10) Dodge of Bellevue Team Dodge of Stone Mountain Dobbs Ford of Memphis-Mt. Moriah Ford of Kirkland Team Dodge of Union City Dobbs Ford of Memphis-Wolfchase MARYLAND (8) Kirkland Buick Team Ford of Alpharetta-Northpoint Dobbs GMC of Memphis Fox Buick of Laurel Kirkland GMC Team Ford of Atlanta Dobbs Honda on Memphis-Mendenhall Fox Chevrolet of Baltimore Kirkland Pontiac Team Ford of Marietta Dobbs Honda of Memphis-Covington Pike Fox Chevrolet of Laurel Northwest Nissan of Lynwood Team GMC of Union City Dobbs Mazda of Memphis Fox Chevrolet of Timonium Prestige Ford of Bellevue Team Honda of Lithia Springs Dobbs Mitsubishi of Memphis Fox GMC of Laurel Town & Country Chrysler of Seattle Team Jeep of Lithia Springs Dobbs Nissan of Memphis Fox Isuzu of Laurel Town & Country Jeep of Seattle Team Mitsubishi of Lithia Springs Dobbs Pontiac of Memphis Fox Mitsubishi of Baltimore Town & Country Nissan of Seattle Team Mitsubishi of Roswell-Northpoint West Side Honda of Knoxville Fox Pontiac of Laurel
  • 10. AutoNation BOARD OF DIRECTORS AutoNation Senior Management Mike Jackson Chief Executive Officer Michael E. Maroone President, Chief Operating Officer Harris W. Hudson H. Wayne Huizenga Mike Jackson Craig T. Monaghan Vice Chairman of the Board Chairman of the Board Chief Executive Officer Senior Vice President, Chief Financial Officer Thomas S. Butler Senior Vice President Corporate Development John R. Drury Senior Vice President Marketing Robert F. Dwors J. P. Bryan 1, 2 Rick L. Burdick 1 Robert J. Brown Senior Vice President Chairman & Chief Senior Managing Director Partner Corporate Real Estate Services Executive Officer Torch Energy Advisors, Inc. Akin, Gump, Strauss, B&C Associates, Inc. (an outsourcing and service Hauer & Feld, L.L.P. James D. Evans, Jr. (a management consulting provider to the oil and (a law firm) Senior Vice President and public relations firm) gas industry) New Vehicles Jonathan P. Ferrando Senior Vice President, General Counsel & Secretary Patricia A. McKay Senior Vice President Finance Peter C. Smith William C. Crowley 1 George D. Johnson, Jr. 2 Michael G. DeGroote Senior Vice President Chairman President & Chief Executive Officer Human Resources Century Business Chief Operating Officer Extended Stay America, Inc. Services, Inc. ESL Investments, Inc. (an economy extended stay Allan D. Stejskal (a provider of professional (an investment firm) lodging chain) Senior Vice President business services and Operations products) Kevin P. Westfall Senior Vice President Finance & Insurance Board Committees 1 Audit Committee John J. Melk 1 Irene B. Rosenfeld 1, 2 Edward S. Lampert 2 Chairman & Chairman & Chief Executive Group Vice President 2 Compensation and Nominating Committee Chief Executive Officer Officer Kraft Foods, Inc.; ESL Investments, Inc. Fisher Island Holdings, LLC President-Operations, (an investment firm) (developer of residential resort Research & Development and properties ) Information Systems, Kraft Canada, Mexico & Puerto Rico (a manufacturer and distributor of packaged food and food service products)
  • 11. AutoNation Annual Report 2001 Corporate INFORMATION Headquarters Common Stock Transfer Agent and Registrar AutoNation, Inc. For inquiries regarding address changes, stock transfers, 110 S.E. 6th Street, Fort Lauderdale, FL 33301 lost shares or other account matters, please contact: Telephone: (954) 769-7000 • www.AutoNation.com Computershare Investor Services, LLC P.O. Box 1689, Chicago, IL 60690-1689 Investor Contact and Information Requests Shareholders, securities analysts, portfolio managers and Registered owners of AutoNation common stock may also call representatives of financial institutions requesting copies of (800) 689-5259, Monday through Friday (9:00 a.m. - 5:00 p.m. the Annual Report, Form 10-K, quarterly reports and other CST), to inquire about address changes, stock transfers, lost corporate literature should please call (954) 769-7339 or write shares and other account matters. AutoNation, Inc., Investor Relations, at the above address. Internet users can access information at Notice of Annual Meeting http://www.computershare.com. The Annual Meeting of Shareholders of AutoNation, Inc. will be held at 9:30 a.m., May 16, 2002, at: Independent Certified Public Accountants Arthur Andersen LLP The Parker Playhouse 100 N.E. 3rd Avenue, Fort Lauderdale, FL 33301 707 N.E. 8th Street, Fort Lauderdale, FL 33312 Telephone: (954) 764-1441 Forward-looking Statements Common Stock Information Some of the statements and information contained throughout this Since April 6, 1999, the Company’s common stock has Annual Report constitute “forward-looking statements” within the traded on the New York Stock Exchange (“NYSE”) under meaning of the Federal Private Securities Litigation Reform Act of the symbol “AN.” From June 20, 1997 through April 5, 1995. The forward-looking statements describe our expectations, 1999, the Company’s common stock traded on the NYSE plans and intentions about our business, financial condition, results of under the symbol “RII.” operations, cash flows and prospects. Known and unknown risks, uncertainties and other factors may cause our actual results, At March 25, 2002, there were approximately 321,200,000 performance, or achievements to be materially different from any shares of common stock outstanding, held by future results, performance, or achievements expressed or implied by approximately 3,400 shareholders of record. the forward-looking statements. We undertake no duty to update or revise our forward-looking statements, whether as a result of new information, future events or otherwise.
  • 12. AutoNation’s branded markets include: Tampa Bay Houston Orlando Las Vegas Memphis Baltimore Denver South Florida Jacksonville Cleveland Atlanta 110 S.E. 6th Street, Fort Lauderdale, FL 33301 • www.AutoNation.com