Lithia Motors

Last updated
Lithia Motors, Inc.
Company type Public
Industry Automotive dealerships
Founded1946;79 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]

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. [30] [31] In August 2021, it purchased Canadian dealership Pfaff Automotive, its first outside the United States, [32] and the Driveway.com subsidiary assumed title sponsorship [33] of the subsidiary's motorsport presence Pfaff Motorsports.

In early 2021, the company added about $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. [34]

As of May 2022, Lithia operated 267 stores in 24 states, and 14 in Canada. [35]

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%. [36] Additional revenues come from auto repair at the dealerships, financing, and insurance sales. [37]

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. [38]

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. [39] 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. [40]

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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. ↑ "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 The Suburban Collection". Auto Remarketing. 2021-04-13. Retrieved 2021-04-30.
  31. ↑ "Lithia continues buying spree with N.J. Honda acquisition". Asume Tech. 2021-04-27. Retrieved 2021-04-30.
  32. ↑ Greg Layson (2021-08-31). "Lithia acquires Canada's Pfaff Automotive dealership group". Automotive News.
  33. ↑ "Pfaff Chooses McLaren For 2024 GTD Pro Effort". www.dailysportscar.com. Retrieved 2024-05-28.
  34. ↑ 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.
  35. ↑ "Lithia Auto Stores" . Retrieved 22 May 2022.
  36. ↑ 2023 Annual Report. Lithia Motors, Inc. Retrieved on May 18, 2024.
  37. ↑ 2006 Annual Report. Lithia Motors. Retrieved on September 15, 2007.
  38. ↑ Auto News: http://www.autonews.com/article/20131125/RETAIL04/311259995/lithia-expands-to-boost-used-car-sales#ixzz2qVL3ZKSh
  39. ↑ http://www.autonews.com/article/20160402140000/RETAIL06/304039992 [ dead link ]
  40. ↑ 2015 Global Automotive Shareholder Value Awards

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