Mike Jackson, the 20-year CEO of AutoNation Wednesday announced his planned transition to executive chairman.
The company board will begin a search for a new CEO and president next year, he said.
In an interview on CNBC, Johnson said: "The company is in great shape. It's a good time for me to hand over the baton."
The largest U.S. retailer also announced that AutoNation's board extended Jackson's contract as executive chairman through 2021. As executive chairman of the board, Jackson said his role will be to "support the new CEO in every way that's constructive to success."
AutoNation doesn't have an obvious successor. In 2017, Jackson added the title of "president," when William Berman resigned after only three months in the position. He also had been a 20-year executive at AutoNation and chief operating officer since 2015.
Jackson said he didn't name a new president because he had been planning with his mentor and AutoNation founder H. Wayne Huizenga to make the transition to executive chairman in a few years.
Jackson has been AutoNation's CEO since 1999, when he was hired by Huizenga, who died March 22 at age 80.
AutoNation has 28,000 employees nationwide across the country.
Under Jackson, AutoNation has sold more than 11 million vehicles and raised nearly $15 million for cancer-related charities. Jackson diversified the types of cars sold at AutoNation retailers and expanded across the country. AutoNation shareholder return has increased more than three times and earnings per share more than 570 percent since 1999, spokesman Marc Cannon said.
In 2017, AutoNation revenue was $21.5 billion, compared with $21.6 billion in 2016. Profit rose 6 percent.
Jackson said both internal and external candidates will be considered for the leadership position. Executive search firm Spencer Stuart has been hired to help AutoNation's board with the process, the company said.
Jackson will remain CEO until the new executive is selected.
Jackson said he laid the foundation in 2016 for the company's current focus on used car sales and service, opening new stores and repair shops. He also introduced the no-haggle, "one price" concept to AutoNation stores.
"The outlook is pretty good for the industry in 2019," he said.
Jackson said he expects automobile sales to remain strong until "inflation raises its ugly head." Then, the Federal Reserve Board will have to raise interest rates, which could affect sales.
