Lithia Motors’ revenue hit a new high in the fourth quarter, soaring 34% for new and used vehicle sales. Record sales were bolstered by increased new- and used-vehicle sales, increased average vehicle selling prices and a skyrocketing gross profit per vehicle.
The retailer reports net income surged 55% to $291 million during the quarter. The average gross profit per unit on new vehicles more than doubled to $6,153 in the fourth quarter. Lithia also reported higher average gross profit per unit for used vehicles and F&I.
Lithia's new- and used-vehicle sales climbed 51% in 2021 as the fast-growing automotive retailer continued its acquisition strategy and rolled out Driveway, its omnichannel retailing tool. Lithia made acquisitions in Florida and Michigan in the fourth quarter and acquired its first motorcycle dealership, Pfaff Harley-Davidson of Toronto. These acquisitions are expected to generate annual revenue of $700 million, according to the company.
Lithia's fourth-quarter acquisitions combined are expected to generate annual revenue of $700 million, the company noted.
Lithia also sold four dealerships in the fourth quarter. It sold Carbone Nissan in Yorkville, NY, to Steet Ponte Auto Group. The company also sold Carbone Chevrolet in Yorkville, Carbone Buick-GMC of Utica, and Carbone Honda Yorkville to Brickl Cos.
The auto retailer acquired its first dealership in 2022 when added three dealerships in Northern California to the fold. Lithia notes the acquisitions will add about $700 million to its annual revenue. Lithia also closed a BMW store in New York. It now has 280 dealerships across the U.S. and Canada.
"Since the launch of our 2025 Plan 18 months ago, we have acquired over $11 billion in annualized revenue," Lithia CEO Bryan DeBoer said in a statement. "Increasing our network fuels Driveway's growth, our overall size and scale and ability to further expand our competitive advantages in used vehicle procurement, reconditioning and logistics. [Lithia's] reputation in the marketplace and the magnitude of the deal pipeline makes us confident in our ability to strategically expand our network while meeting our disciplined return thresholds."
Originally posted on Auto Dealer Today