UPDATE 1-Lithia Motors cuts dividend, blames economy

NEW YORK, Aug 18 (Reuters) - Car dealership chain Lithia Motors Inc (LAD.N) cut its quarterly dividend to 5 cents per share from a previous 14 cents a share, blaming a weaker economy.

The lower dividend will be paid Oct. 29 to shareholders on record as of Oct. 15, the company said on Monday.

The move comes after Lithia earlier this month posted a huge quarterly net loss for the second quarter, after taking impairment charges related to restructuring efforts amid a downturn in U.S. auto sales.

U.S. carmakers and dealers have been struggling to cope with a shift away from large trucks and SUVs in the face of rising gas prices and a slumping U.S. economy.

About 32.5 percent of Lithia's new car sales were Chrysler [CBS.UL] brands and 18.1 percent General Motors Corp (GM.N) brands. (Reporting by Ritsuko Ando; Editing by Gary Hill)