AutoNationCEO Mike Jackson told CNBC that the slumping housing market is having a bigger impact on consumer spending than many people realize.
"I cringe a little bit every time I hear from specialists who say there's no spillover from housing on to the consumer," Jackson said. "I flatly disagree with that."
AutoNation , the country's largest automotive retailer, posted second-quarter earnings of 38 cents a share, four cents below analyst estimates. Jackson blamed the shortfall on weaker consumer spending.
"There's no question it's a miss," he said.
The structure of auto sales has changed "dramatically", Jackson added. While first-half industry sales may be down 1%, he said "capital spending on fleets is up but the consumer has pulled back. Retail auto sales are down 9% for the first half of the year - you're talking about losing almost a million units at retail for the industry for the whole year."