Profile: Lithia Motors Inc (LAD)
23 Jul 2019
Lithia Motors, Inc. incorporated on December 23, 1968, is an operator of automotive franchises and a retailer of new and used vehicles and related services. As of February 28, 2017, it offered 30 brands of new vehicles and all brands of used vehicles in 154 stores in the United States and online at Lithia.com, DCHauto.com and CarboneCars.com. It operates through three segments: Domestic, Import and Luxury. Its Domestic segment consists of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. Its Import segment consists of retail automotive franchises that sell new vehicles manufactured primarily by Honda, Toyota, Subaru, Nissan and Volkswagen. Its Luxury segment consists of retail automotive franchises that sell new vehicles manufactured primarily by BMW, Mercedes-Benz and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products. It sells new and used cars and replacement parts; provides vehicle maintenance, warranty, paint and repair services; arranges related financing, and sells vehicle service contracts, vehicle protection products and credit insurance. Its dealerships are located across the United States. It seeks domestic, import and luxury franchises in cities ranging from mid-sized regional markets to metropolitan markets.
As of February 28, 2017, the Company represented 30 domestic and imported brands ranging from economy to luxury cars, sport utility vehicles (SUVs), crossovers, minivans and light trucks. It purchases its new car inventory directly from manufacturers allocating new vehicles to stores based on availability, monthly sales levels and market area demand. Accordingly, it relies on the manufacturers to provide it with vehicles that meet consumer demand at suitable locations.
The Company also sells used vehicles at each new vehicle store. As of February 28, 2017, it sold 113,498 retail used vehicles. It classifies its used vehicles in three categories: manufacturer certified pre-owned used vehicles (CPO); late model, lower-mileage vehicles (Core Product) and higher mileage, older vehicles (Value Autos). It offers CPO vehicles at its franchised dealerships. These vehicles undergo additional reconditioning and receive an extended original equipment manufacturer (OEM)-provided warranty. It acquires its used vehicles through customer trade-ins, purchases from non-Lithia stores, independent vehicle wholesalers and private parties, and at closed auctions.
Vehicle Financing, Service Contracts and Other Products
As part of the vehicle sales process, it assists in arranging customer vehicle financing options, as well as offering extended warranties, insurance contracts and vehicle and theft protection products. It attempts to arrange financing for every vehicle it sells and offers customers financing on a same day basis. It also markets third-party extended warranty contracts, insurance contracts and vehicle and theft protection products to its customers. Extended warranty and service contracts for vehicles provide coverage for certain repairs beyond the duration or scope of the manufacturer's warranty. When customers finance an automobile purchase, it offers them life, accident and disability insurance coverage, as well as guaranteed auto protection coverage that provides protection from loss incurred by the difference in the amount owed and the amount received under an insurance claim. It receives a commission on each policy sold. It offers a lifetime lube, oil and filter (LOF) service. This service, where customers prepay for their LOF services, helps it to retain customers by building customer loyalty and provides opportunities for selling additional routine maintenance items and generating repeat service business.
Service, Body and Parts
The Company provides parts and service for the new vehicle brands sold by its stores, as well as services and repairs most other makes and models. It focuses on growing its customer pay business and market its parts and service products by notifying owners when their vehicles are due for periodic service. As of December 31, 2016, it operated 22 collision repair centers: five in each Oregon and Texas; two each in Idaho, New York and Washington; and one each in Alaska, Iowa, Montana, Nevada, Vermont and Wyoming.
Lithia Motors Inc
150 N Bartlett St
MEDFORD OR 97501-6015