Lithia Motors

Last updated
Lithia Motors, Inc.
Company type Public
Industry Automotive dealerships
Founded1946;78 years ago (1946) in Ashland, Oregon, U.S.
Founder
  • Walt DeBoer
  • Sidney DeBoer
Headquarters Medford, Oregon, U.S.
Key people
RevenueIncrease2.svg US$22.9 billion (2021)
Increase2.svgUS$1.7 billion (2021)
Increase2.svgUS$1.1 billion (2021)
Total assets Increase2.svgUS$11.2 billion (2021)
Total equity Increase2.svgUS$4.6 billion (2021)
Number of employees
21,150 (2022)
Divisions Driveway
Subsidiaries
  • DCH Auto Group
  • Carbone Auto Group
  • Baierl Auto Group
  • Downtown LA Auto Group [1]
  • Day Auto Group [2]
  • Prestige Auto Stores [3]
Website lithiamotors.com
Footnotes /references
[4] [5] [6]

Lithia Motors, Inc. is an American nationwide automotive dealership group headquartered in Medford, Oregon. [7] It is the third largest new vehicle automotive dealership group in the United States, below AutoNation and Penske Automotive Group. [8] As of May, 2024, Lithia operates 298 stores in the United States, 14 stores in Canada and 170 in the United Kingdom. [9] Lithia Motors employs approximately 21,150 people. [10]

Contents

In 2015, Lithia Motors broke into the Fortune 500 list at #482, [11] making it one of only three Oregon-based companies in the Fortune 500. [12] This followed a year that saw the acquisition of the DCH Auto Group, one of the 10 largest dealer groups in the country, with 27 dealerships, before being purchased by Lithia Motors. [13] In 2016, Lithia climbed to #346 and that same year made the Fortune 500 List of Top Ten Companies with the biggest jump in rank on the Fortune 500. [14] As of 2018, Lithia is ranked #294 on the Fortune 500. [15] As of 2022 Lithia is ranked #158 on the Fortune 500.

History

Lithia Motors began in 1946 when Walt DeBoer opened a single car dealership in Ashland, Oregon. In the first year, the five-person company sold 14 cars. [16] In 1968, Walt's son, Sidney DeBoer, took over the business and incorporated Lithia Motors Inc. Sidney reorganized the business and in 1970 purchased a Dodge dealership in Medford. With this, Lithia's base of operation moved to Medford and grew to a total of five stores with 19 franchises by 1990. [17]

In December 1996, the company went public, trading on the New York Stock Exchange with an IPO of $11 per share. [17] By 2003, Lithia had revenues of $2.5 billion from its 84 dealerships, while employing just over 5,500 people. [18] The company had increased dealerships to 88 by 2005. [19] Lithia was fined $500,000 by the state of Alaska in 2006 for charging car buyers illegal document preparation fees at their Alaska dealerships. [20] That year, they also settled with the Equal Employment Opportunity Commission for workplace discrimination. [21] In early 2007, Lithia developed plans to build a 60-acre (240,000 m2) auto mall north of downtown Medford and to build a new corporate headquarters in downtown Medford. The Chrysler Jeep Dodge store moved to the auto mall in September 2007, but the project was put on hold for seven years because the recession hit shortly after. In late 2014, Lithia moved their Honda, Nissan, BMW and Volkswagen stores to the auto mall. The group's Toyota store, which the group had planned to move to the auto mall, instead went through a $1.5 million renovation in 2013 and stayed on their five-acre site in downtown Medford. [22] In 2010, it was reported that with the backing of two lenders, "the Commons," a mixed-use building with Lithia Headquarters as the largest tenant, was a "go" and could proceed with construction. According to an article by The Mail Tribune, "Lithia partnered with the Medford Urban Renewal Agency to create The Commons, a revitalization project that includes the headquarters and another $14 million in infrastructure and three park blocks, paid for with MURA dollars. [23] Lithia employees moved into their new headquarters in late 2012. In January 2014, the Commons building was awarded Silver Leadership in Energy and Environmental Design (LEED) Certification by the U.S. Green Building Council. [24] Lithia has been the recipient of numerous awards, including Sports Illustrated's All-Star Dealer Award in 1990 and Time's Quality Dealer Award in 1997, 2016 Top Workplace-Oregon Award, [25] 2016 Automotive News Best Dealerships to Work For [26] and 2016 Fortune 500-40th Fastest Growing Company. [27] In 2018, 10 Lithia Motors stores were named "Best Dealerships to Work For" by Automotive News. [28] Cox Automotive awarded Lithia Motors' BMW of Ramsey, New Jersey store with the 2019 Cox Automotive Leader in Sustainability Award, citing outstanding community contributions and sustainable programs including waste reduction, water conservation and energy consumption. [29]

With the acquisition of the DCH Auto Group in late 2014, Lithia expanded to 139 stores in 14 states across the US, Hawaii and Alaska.

In September 2016, Lithia Motors announced that they were acquiring Greiner Ford-Lincoln in Casper, WY. [30]

In September 2016, Lithia Motors partnered with Carbone Auto Group in New York and Vermont, bringing the Lithia Motors store count to 152. [31]

In May 2017, Lithia Motors announced that they had acquired Baierl Auto Group in Pittsburgh, increasing their total store count to 160 and collision center count to 22. [32]

In August 2017, Lithia Motors acquired Downtown Los Angeles Auto Group ("DTLA"), bringing the Lithia store count to 167. [28]

In February 2018, Lithia Motors' store count grew to 179 after their acquisition of Day Automotive Group out of Monroeville, Pennsylvania. [28]

In March 2018, Lithia Motors acquired Prestige Auto Stores in Bergen County, New Jersey, bringing the Lithia store count to 185. [28]

In February 2021, a source reported Lithia Motors was in talks to acquire the Suburban Collection dealer chain in Michigan. Suburban reported revenues of $2.7 billion in 2019. Later in April of the same year, the company acquired New Jersey dealership Planet Honda of Union, which is expected to add $230 million in annual revenue. [33] [34] In August 2021, it purchased Canadian dealership Pfaff Automotive, its first outside the United States, [35] and the Driveway.com subsidiary assumed title sponsorship [36] of the subsidiary's motorsport presence Pfaff Motorsports.

In early 2021, the company added roughly $6.5 billion to its annual revenue, placing it about one-third of the way towards the company's target, according to CFO Tina Miller, currently in charge over the project. The success of the project is in part attributed to Lithia's e-commerce platform Driveway, which facilitates online used car sales with its inventory coming from dealer lots owned by Lithia. [37]

As of May 2022, Lithia operated 267 stores in 24 states, and 14 in Canada. [38]

Product

Lithia sells new and used cars of various makes and models. New cars make up 49% of retail auto sales, with used cars making up the other 51%. [39] Additional revenues come from auto repair at the dealerships, financing, and insurance sales. [40]

In 2013 Lithia was named No. 9 on Automotive News' list of the 125 largest U.S. dealership groups, with retail new-vehicle sales of 56,960 units in 2012. In used-vehicle sales it also ranks No. 9, with retail used-vehicle sales of 49,067 in 2012. [41]

The company received a Global Automotive Shareholder Value Award presented by PwC and Automotive News in 2015, the sixth consecutive year for Lithia, followed by a three-year award in 2016. [42] The awards are given to companies to recognize the highest shareholder returns within one-year and three-year periods among Global Vehicle Manufacturers, Global Automotive Suppliers and U.S. Automotive Retailers categories. [43]

See also

Related Research Articles

<span class="mw-page-title-main">Car dealerships in the United States</span>

In the United States, a car dealership is a business that sells cars. A car dealership can either be a franchised dealership selling new and used cars, or a used car dealership, selling only used cars. In most cases, dealerships provide car maintenance and repair services as well as trade-in, leasing, and financing options for customers.

<span class="mw-page-title-main">Washington Square (Oregon)</span> Shopping mall in Tigard, Oregon, United States

Washington Square is a shopping mall in the city of Tigard, Oregon, United States. Located in the Portland metropolitan area along Oregon Route 217, the shopping complex is one of the top grossing malls per square foot in the United States, with sales of $716/ft2. Opened in 1973, the mall is currently managed and co-owned by The Macerich Company, a real estate investment trust, and is anchored by Macy's, Nordstrom, JCPenney, Apple Store, and Dick's Sporting Goods.

<span class="mw-page-title-main">Car dealership</span> Business which sells, buys, and trades new and/or used cars, trucks, SUVs, and vans

A car dealership, or car dealer, is a business that sells new or used cars, at the retail level, based on a dealership contract with an automaker or its sales subsidiary. Car dealerships also often sell spare parts and automotive maintenance services.

<span class="mw-page-title-main">AutoNation</span> American automotive retailer

AutoNation is an American automotive retailer based in Fort Lauderdale, Florida, which provides new and pre-owned vehicles and associated services in the United States. The company was founded by Wayne Huizenga in 1996, starting with twelve AutoNation locations, and now has more than 300 retail outlets.

Auto Trader Group plc, commonly known as Auto Trader, is a British automotive online marketplace and classified advertising business. It enables the buying and selling of new and used vehicles by private sellers and trade retailers. Auto Trader is listed on the London Stock Exchange trading under the ticker symbol AUTO, and is a constituent of the FTSE 100 Index.

Lookers is a British car dealership chain in the United Kingdom and Ireland. It represents multiple brands, and is based in Altrincham. It is listed on the London Stock Exchange.

<span class="mw-page-title-main">Pinewood Technologies</span>

Pinewood Technologies Group PLC is a business focused on pure-play software-as-a-service for car dealerships. The company is based at Annesley, Nottingham. It is listed on the London Stock Exchange.

<span class="mw-page-title-main">Sonic Automotive</span> American automotive retailing company

Sonic Automotive is a Fortune 500 company based in Charlotte, North Carolina, and is the fifth largest automotive retailer in the United States as measured by total revenues. The company was founded by O Bruton Smith and completed its initial public offering on the NYSE in 1997.

<span class="mw-page-title-main">Genuine Parts Company</span> Auto/industrial/electronic parts

Genuine Parts Company (GPC) is an American service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. GPC serves numerous customers from more than 2,600 operations around the world, and has approximately 48,000 employees. It owns the NAPA Auto Parts brand.

Asbury Automotive Group is a company based in Atlanta that operates auto dealerships in various parts of the United States. Founded in 1995, it was ranked No. 360 on the 2022 Fortune 500 list.

Group 1 Automotive, Inc. is an international Fortune 300 automotive retailer with automotive dealerships and collision centers in the United States and the United Kingdom. Group 1 sells new and used cars and light trucks, arranges financial services, provides maintenance and repair services, and sells vehicle parts. As of 2021, the company employs over 13,000 people globally.

<span class="mw-page-title-main">Reynolds and Reynolds</span> Private corporation based in Ohio

The Reynolds and Reynolds Company is a private corporation based in Dayton, Ohio. Its primary business is providing business forms, management software and professional services to car dealerships. Its software is used to manage sales logistics at dealerships. It also produces forms used in medicine and insurance.

<span class="mw-page-title-main">G.I. Joe's</span>

G.I. Joe's was a privately owned retail chain for sporting goods, ready-to-wear clothing, and auto parts; that operated stores in the Pacific Northwest region of the northwestern United States.

Perrys Motor Sales is a franchised automobile dealer in the United Kingdom, with its head office in Northampton, United Kingdom.

The Sytner Group Ltd is a car dealership company headquartered in Leicester, United Kingdom.

Chevrolet-Saturn of Harlem, Inc., was a car dealership in the East Harlem neighborhood in New York City. Originally touted as a minority-owned dealership and part of the only new-car facility in Harlem, it was abandoned by its original operator within months and was taken over by General Motors directly. On June 1, 2009, it was used as the lead company in the General Motors Chapter 11 reorganization filing in New York.

<span class="mw-page-title-main">Fitzgerald Auto Mall</span> Auto dealership group on the east coast of the US

Fitzgerald Auto Mall is a family owned and operated auto dealership that was founded in 1966, with its first location opening in Bethesda, Maryland. As of 2014, Fitzgerald Auto Mall ranked number 59 on the list of the "Top 125 Dealership Groups" in the U.S., which is published annually by Automotive News. Fitzgerald dealer locations appear five times on the 2013 WardsAuto e-Dealer 100, at No. 8, No. 25, No. 30, No. 43 and No. 98.

The electric car company Tesla, Inc. has faced dealership disputes in several U.S. states as a result of local laws. In the United States, direct manufacturer auto sales are prohibited in many states by franchise laws requiring that new cars be sold only by independent dealers.

<span class="mw-page-title-main">Modal Commerce</span>

Modal, formerly known as Next Technology Inc., was an American-based company in San Francisco, that sold software for a dealership's website, allowing car shoppers to purchase new and used cars online.

<span class="mw-page-title-main">Toyota dealerships (Japan)</span>

Toyota vehicles in Japan are distributed to numerous dealership chains throughout the country. Up to May 2020, each dealership chain had a different product offering, with some models restricted to one chain to maintain exclusivity. Since May 2020, every Toyota model in Japan was available in all dealership chains. Current dealership chains include Toyota Store, Toyopet Store, Toyota Corolla Store and Netz Store.

References

  1. "Lithia purchases LA auto group". 8 August 2017.
  2. "Day Automotive Group Joins Lithia". 27 February 2018.
  3. "Lithia buys New Jersey stores from Prestige". March 2018.
  4. "Lithia Motors, Inc. Financials". Nasdaq . Retrieved 2022-04-13.
  5. "Lithia Motors Total Assets 2006–2021 | LAD".
  6. "Lithia Motors, Inc". Google Finance. Retrieved February 23, 2016.
  7. "Home". lithiamotors.com.
  8. "Top 150 Dealership Groups" (PDF). Automotive News. December 27, 2021.
  9. "Lithia Auto Stores" . Retrieved 18 May 2024.
  10. "FAQ - Lithia & Driveway" . Retrieved 22 May 2022.
  11. 2022 Fortune 500
  12. Rogoway, Mike (January 30, 2016) [first published online January 29]. "Precision Castparts' $37B sale finalized". The Oregonian. p. C8. Retrieved 2016-02-02.
  13. DCH Auto Group Acquisition
  14. Fortune 500
  15. "Lithia Motors". Fortune. Retrieved 2018-11-29.
  16. "Lithia Motors Sells 14 Cars the Year It Opens in 1946". Jefferson Public Radio. Retrieved 2021-10-08.
  17. 1 2 About Lithia. Lithia.com. Retrieved on September 15, 2007.
  18. Brinckman, Jonathan. Every Lithia shop moves cars the same way conformity drives it. The Oregonian , October 10, 2004.
  19. Brinckman, Jonathan. Inside Oregon business: Auto dealer bypasses industry slump. The Oregonian , June 16, 2005.
  20. Lithia to pay refunds and fine in Alaska. Portland Business Journal , December 5, 2006.
  21. Brinckman, Jonathan. Lithia settles Colorado discrimination suit. The Oregonian , March 17, 2006.
  22. Lithia Motors building Oregon's largest auto mall. Portland Business Journal , January 22, 2007.
  23. "Article missed the point".
  24. "Lithia Headquarters Awarded Silver LEED Certification".
  25. Top Workplace Oregon Award
  26. Best Dealerships to Work For
  27. Fortune Fastest Growing Companies List
  28. 1 2 3 4 "Lithia Investor Relations". www.lithiainvestorrelations.com. Retrieved 2019-03-08.
  29. "Cox Automotive Presents Leader in Sustainability Award to BMW of Ramsey". Cox Automotive Inc. Retrieved 2019-03-08.
  30. "Lithia acquires Wyoming Ford store" . Retrieved 2020-08-14.
  31. 150 Stores
  32. "Lithia Enters State of Pennsylvania; Baierl Auto Group Joins Lithia" . Retrieved 2018-01-10.
  33. "Lithia acquires The Suburban Collection". Auto Remarketing. 2021-04-13. Retrieved 2021-04-30.
  34. "Lithia continues buying spree with N.J. Honda acquisition". Asume Tech. 2021-04-27. Retrieved 2021-04-30.
  35. Greg Layson (2021-08-31). "Lithia acquires Canada's Pfaff Automotive dealership group". Automotive News.
  36. "Pfaff Chooses McLaren For 2024 GTD Pro Effort". www.dailysportscar.com. Retrieved 2024-05-28.
  37. Broughton, Kristin (2021-04-23). "Lithia Motors Accelerates Dealer Acquisitions Amid Boom in Car Sales". Wall Street Journal. ISSN   0099-9660 . Retrieved 2021-04-30.
  38. "Lithia Auto Stores" . Retrieved 22 May 2022.
  39. 2023 Annual Report. Lithia Motors, Inc. Retrieved on May 18, 2024.
  40. 2006 Annual Report. Lithia Motors. Retrieved on September 15, 2007.
  41. Auto News: http://www.autonews.com/article/20131125/RETAIL04/311259995/lithia-expands-to-boost-used-car-sales#ixzz2qVL3ZKSh
  42. http://www.autonews.com/article/20160402140000/RETAIL06/304039992 [ dead link ]
  43. 2015 Global Automotive Shareholder Value Awards

Official website OOjs UI icon edit-ltr-progressive.svg