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The number one U.S. auto retailer, AutoNation, is moving to cut costs by $100 million, removing 1,300 jobs in the process.

With 24,000 employed nationwide, the Fort Lauderdale-based company has to make   more...reductions not only in labor, but advertising, expansion, inventory, and expenditures.

In what CEO Mike Jackson calls an industry “perfect storm”, continual low sales of new vehicles were evident in the company’s 13% drop in second quarter performance.

AutoNation posted $51.8 million in revenues for the quarter in 2008, compared to $77.3 million in quarter two of last year.

Recent challenges in the industry have caused the company to further analyze the state of the market. AutoNation will be shrinking its overhead, and selling off in weak performing areas.

For now, it is the best course of action, as AutoNation hopes to ride out the storm.

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