December 7, 2011 WANADA Group Session [Dept Name] [Dept. Name] - PDF document

December 7, 2011 WANADA Group Session [Dept Name] [Dept. Name] September 2011

Industry Sales (Unit Sales in Millions) 18 17.3 17.1 16.9 16.9 16.9 16.9 16 8 16.8 16 6 16.6 16.5 17 16.1 16 15 15 14 13.2 12.6 12.6 13 13 11.6 12 11 10.4 10.4 10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2

3 3 No Double Dip…

… and better positioned for long-term recovery 4

Path Back to 16 Million SAAR Annual U.S. SAAR, Units from HH Formation & Scrappage Rate 18.0 16.0 14.0 12.0 10.0 0 0 8.0 of units 6.0 4 0 4.0 In millions 2.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Scrappage estimates Units from HH formation US SAAR ____________________ Sources: Polk / J.D. Power / AutoNation estimates ► Normalized SAAR forecasted to return to 15-16 million units ► Normalized SAAR forecasted to return to 15-16 million units – Replacement demand driving sales, as current selling rates below scrappage rates – Continued increase in annual household formation expected 5

Units in Operations (in millions of units) 84 83 80 76 73 71 71 68 7 0 64 65 63 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Trailing 5Yrs New Sales 6 Source: J.D.Power Source: J.D.Power

Off-Lease Vehicles 3.5 3.0 s ons of units 2.5 millio 2.0 1.5 1.0 8 9 0 1 2 3 4 5 6 7 8 9 E E E E E E 9 9 0 0 0 0 0 0 0 0 0 0 0 0 1 1 2 2 3 3 4 4 5 5 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 2 2 2 2 2 2 7 Source: Manheim Consulting

President Obama on Financial Reforms • Obama thought for a moment as he spoke to Elizabeth Warren - and then got authentic. “It just kills me that car lenders are not included,” Obama opened up, referencing the Brownback amendment, which exempted dealers from regulation by the protection bureau using an arcane parliamentary trick protection bureau using an arcane parliamentary trick. • The president then launched into a more personal story. “Michelle and I, when we were younger, decided we were going “Michelle and I hen e ere o nger decided e ere going to lease a car. I went out and shopped around and got a car. When I returned the car four years later, like I was supposed to, y , pp , it was the first time I realized how expensive that car was,” he confided, trying to show Elizabeth his empathy for her cause. “ “How could anyone understand that? I really tried!” ? ” 8 Source: Confidence Men

Be Prepared To Sell a Lot More Broccoli 9

10 Fast and Furious Financial Panic

Healthy Auto Industry Financial Panic 11

Q&A Discussion