MENU
SEARCH
Lithia Motors Inc. it has expanded its presence in its home state by acquiring Honda of Bend and Bob Thomas Chevrolet-Cadillac in Bend, Ore., and has divested its Dodge store in Fresno, Calif., Automotive News reported. The transaction prices were undisclosed.
The purchase gives the publicly held retailer 16 dealerships in Oregon and about $35 million in additional annual revenue. Fresno Dodge accounted for $17 million in annual revenue and was sold to the owner of Fresno Chrysler-Jeep.
“These two transactions continue our progress toward diversification and improving our brand mix,” Lithia CEO Sid DeBoer said in a statement.
Lithia, of Medford, Ore., aims to reduce its dependence on Chrysler brands, which accounted for 27 percent of new-vehicle revenues in the first quarter. The goal is for no brand to represent more than 20 percent of revenue, said John North, Lithia's corporate controller.
The retailer announced a plan to divest 29 underperforming dealerships in 2008. North said Lithia sold all those stores as well as other weak stores by the end of 2009.
After the latest transactions, Lithia has 84 stores in 12 states and sells 26 new-vehicle brands.
Lithia ranks No. 9 on the Automotive News list of the top 125 U.S. dealership groups with new vehicle retail sales of 30,506 in 2009.
Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →
A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.
Read More →
A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.
Read More →
Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.
Read More →
U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.
Read More →
Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.
Read More →
Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.
Read More →
Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.
Read More →
The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.
Read More →