AutoNation CEO Talks Tesla And Fracking

Auto industry
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Published on November 10th, 2014
by Steve Hanley

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AutoNation CEO Mike Jackson met with reporters following a Detroit Economic Club luncheon in Dearborn, Michigan on Thursday. During the discussion, the former head of Mercedes-Benz USA shared his thoughts on a wide range of topics, including Elon Musk, Tesla, the current safety recall mess, and fracking, reports the Detroit News.

Jackson termed the so-called “anti-Tesla law” recently signed into law by Michigan governor Rick Snyder “unnecessary protectionism.” He went on to say, “If Elon Musk wants to make a mistake and go with an inefficient distribution system, that’s his right as an American. Let him do it. I’m not afraid … my phone will ring someday when he really wants to sell some cars.” Jackson has been outspoken in his support of Elon Musk’s direct sales model, if only because he believes in the franchise system so strongly. AutoNation is currently the largest auto retailer in the United States, selling more than half a million cars annually through 220 dealerships.

He then continued his critique of Tesla’s CEO. “There’s a certain irony here that as Elon Musk complains about government intervention and government protectionism, he wouldn’t exist without the government.” He was referring to the federal loans Tesla received to get its business off the ground (which Tesla has paid off with interest), the money governments are spending on infrastructure to support electric car recharging, and the substantial federal and state incentives available to buyers of electric vehicles.

Jackson also attacked the National Highway Transportation Safety Administration (NHTSA)  for its weak and confusing response to myriad safety defects that affect more than 60 million cars. “The information on their sites has been confusing. They’ve had wrong information on their sites. They sent a letter to manufacturers and Takata telling them to move more urgently and expediently. But, nowhere do they answer the question, is the car safe to drive?”

Jackson said he’s received ten different messages from ten different manufacturers. “When you ask who can get everybody on the same page? It would appear the regulator should be the one that does that, NHTSA. It’s sinking into the American’s conscience that the industry does not have a coherent plan to care for their safety,” he said. “A cost will come for that sooner or later … but now’s the time to speak up and say, ‘We need a better solution.’”

Jackson had more to say to reporters, repeating his support for fracking as a way to get more oil, saying it could make the U.S. energy independent in five years (even though the fracking bubble seems ready to burst). He also called for a large tax on gasoline as a way to push drivers into vehicles that are more fuel efficient, with Jackson believing that fuel efficiency gains are coming more from internal combustion enginesthan from electric vehicles and hybrids. In his opinion, electric vehicles are still not even close to cost effective.

Jackson said a renaissance has occurred among domestic manufacturers, adding that better products, improved access to credit and pent up demand have made this a great year for car sales. He predicted sales will top 17 million vehicles in 2015 and said sales will remain strong until interest rates rise significantly. “We have the most exciting, fascinating products coming from Detroit ever,” he said. “They are world-class.”

Jackson clearly has his finger on the pulse of the automobile industry.  He doesn’t hide behind flowery phrases from professional speech writers either, but says what’s on his mind. In a world dominated by corporate-speak, that is a refreshing change, even if you don’t agree with everything he says.

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Tags: AutoNation, AutoNation CEO, electric vehicles, Elon Musk, Fuel economy, gasoline tax, Michigan anti-Tesla law, Mike Jackson, NHTSA news, Rick Snyder, Tesla, Tesla Motors


About the Author

Steve Hanley I have been a car nut since the days when articles by John R. Bond and Henry N. Manney, III graced the pages of Road Track. I know every nut, bolt and bullet connector on an MGB from 20 years of ownership. I now drive a 94 Miata for fun and the occasional HPDE track day. If it moves on wheels, I am interested in it. Please follow me on Google + and Twitter.


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