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AutoNation strategy

Tuesday, Aug. 3, 1999 | 11:55 a.m.

DETROIT -- Trying to raise a sagging share price, H. Wayne Huizenga announced Monday that AutoNation Inc., the giant automotive retailer that he controls, would spin off or sell its struggling car rental businesses, which include National Car Rental and Alamo Rent-a-Car.

Much as the move might look like a retreat from Huizenga's vision two years ago of assembling an empire that would reap economies of scale by being involved in every stage of selling, renting and servicing new and used cars, he insisted it was not a step back.

He explained that he hoped to preserve many of the advantages of a large-scale operation by writing a contract with the car rental groups before disposing of them. Under the contract, AutoNation will continue to service many cars for the rental businesses and will continue to sell them some new cars, Huizenga said.

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