Automotive — 2

Auto Nation U.S.A., owned by former Blockbuster Video CEO Wayne Huizenga and headquartered in Fort Lauderdale, FL, is currently the biggest group of 287-plus new car dealerships. With 374 franchises as of 2002 and with a group revenue (all departments) of $19,315,900, Auto Nation U.S.A. leads the way to going public. There are now eleven (11) retail groups that are trading on the stock market.

The UAW reached tentative agreements with the Big Three automakers all within four days of each other, the first time the contracts have been wrapped up so neatly. After two months of negotiations, the union reached tentative pacts with General Motors and Delphi Corp. on Sept. 18, 2003; with Daimler-Chrysler Sept. 14, 2003 and Ford Motor Co. on Sept. 15, 2003. These are the largest collective bargaining negotiations of the year, covering more than 330,000 workers.

There are over one million people employed in new car dealerships in the United States and Canada. The following table shows Non-Unionized versus Unionized New Car Technicians/Mechanics by each Territory in the United States:

Ford Motor Company

Ford marked its centennial in 2003 and has produced its 300-millionth vehicle. Ford is on track to post operating profits of $3 billion in 2003.

Ford Motor Company has its own dealership group called the Auto Collection. It was essentially a reaction to GM customer-friendly Saturn dealers and Wayne Huizenga’s cost effective Auto Nation. The Auto Collection concept is a program to consolidate fragmented dealership networks and run these new “car storesÓ as retail and service centers. There are locations in Oklahoma City and Tulsa, Oklahoma; San Diego, California; Rochester, New York; and Salt Lake City, Utah. Salt Lake City is Ford’s largest U.S. Auto Collection with an estimated $750 million in annual gross revenue, 1,500 employees and 14 Ford Lincoln Mercury and Mazda stores.