AutoNation offers 25% off service work through April

AutoNation Inc., the nation's largest new-vehicle retailer, is offering 25 percent off service work to all customers through April, hoping to help people financially impacted during the coronavirus outbreak.

The retailer, which on April 1 launched the deal that includes parts and labor, shared a video of the promotion on Twitter on Monday. The company also has information about the offer on its website.

"For everyone that has to be on the road @AutoNation says #ThankYou & brings you some relief," the company tweeted.

Auto retailers from the largest companies to smaller dealerships are rolling out promotions aimed at helping customers — and their businesses — during the coronavirus pandemic. With service driving a significant portion of dealership revenue and profits, some stores are offering service discounts to essential workers or deferrals on service work for a certain time period.

"We have had many thank us for helping to keep them on the road and helping their pocketbook," AutoNation Chief Marketing Officer Marc Cannon said in an email to Automotive News.

Cannon said the service discount is unique in that it covers all service work and labor and items typically excluded from major promotions, such as a single tire.

AutoNation, on its website, said there is a $500 maximum discount available at stores in Arizona, California, Colorado, Nevada, Texas and Washington. The company limits the discount to one coupon per vehicle and said taxes, shop supplies, battery fees and hazardous waste fees, where applicable, are extra. Collision work is excluded.

Earlier this month, the auto-retail giant announced a number of cost-cutting moves as it has seen its new- and used-vehicle sales volume and service work drop given stay-at-home orders because of the coronavirus.

The company has placed about 7,000 employees — or more than a quarter of its work force — on unpaid leave, temporarily cut employees' base pay, froze new hiring, trimmed advertising costs by about half in the second quarter and postponed more than $50 million in capital expenditures.

Executive Chairman Mike Jackson and CEO Cheryl Miller, who was granted leave Monday for undisclosed health reasons, have taken 50 percent salary cuts, while other executives and corporate and regional staff are taking pay cuts ranging from 20 to 35 percent.

AutoNation Inc., of Fort Lauderdale, Fla., ranks No. 1 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 282,602 new vehicles in 2019.