Lithia Motors

Infobox Company
company_name = Lithia Motors, Inc.
company_
company_type = Public (nyse|LAD)
foundation = 1946, Ashland, Oregon
location = Medford, Oregon,
United States flagicon|USA
key_people = Sidney P. DeBoer, CEO
industry = auto retailing
products = automobiles
revenue = $3,173 million (FY 2006)
operating_income = profit $115 million (FY 2006)
net_income = profit $37.3 million (FY 2006)
num_employees = 6,261 (2006)
parent =
divisions =
subsid =
homepage = [http://www.lithia.com lithia.com]
footnotes = Financial data. [http://media.corporate-ir.net/media_files/irol/90/90019/LAD_AR_2006.pdf 2006 Annual Report.] Lithia Motors. Retrieved on September 15 2007.]

Lithia Motors, Inc. (nyse|LAD) is an automotive retailer headquartered in Medford, Oregon. It is the seventh largest auto retailer in the United States, [Donna Harris, Top dealership groups get bigger, richer. "Automotive News", March 19 2007.] and ranks as number 615 on the Fortune 1000 list of the largest companies in the U.S. for 2007. [http://money.cnn.com/magazines/fortune/fortune500/2007/snapshots/795.html Lithia Motors.] CNNmoney.com. Retrieved on September 15 2007.] They ranked fourth in their industry for America's Most Admired Companies in 2007. [ [http://money.cnn.com/magazines/fortune/mostadmired/2007/snapshots/10833.html America's Most Admired Companies: Lithia Motors.] CNNMoney.com: Fortune. Retrieved on September 15 2007.]

History

Lithia Motors began in 1946 when Walt DeBoer opened a single car dealership in Ashland, Oregon. The first year the five person company sold 14 cars. Next, in 1968 Walt DeBoer died and his son Sidney DeBoer took over the company. 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. [http://www.lithia.com/index.cfm?action=dealerlink&Link=22654 About Lithia.] Lithia.com. Retrieved on September 15 2007.]

In December 1996 the company went public, trading on the New York Stock Exchange with an IPO of $11 per share. By 2003, Lithia had revenues of $2.5 billion from its 84 dealerships while employing just over 5,500 people. [Brinckman, Jonathan. Every Lithia shop moves cars the same way conformity drives it. "The Oregonian", October 10 2004. ] The company had increased dealerships to 88 by 2005. [Brinckman, Jonathan. Inside Oregon business: Auto dealer bypasses industry slump. "The Oregonian", June 16 2005.] Lithia was fined $500,000 by the state of Alaska in 2006 for charging car buyers illegal document preparation fees at their Alaska dealerships. [ [http://www.bizjournals.com/portland/stories/2006/12/04/daily14.html Lithia to pay refunds and fine in Alaska.] "Portland Business Journal", December 5 2006.] That year they also settled with the Equal Employment Opportunity Commission for workplace discrimination. [Brinckman, Jonathan. Lithia settles Colorado discrimination suit. "The Oregonian", March 17 2006.] In early 2007 the company announced plans to build a 60 acre auto mall north of downtown Medford and to build a new corporate headquarters in downtown Medford. [ [http://www.bizjournals.com/portland/stories/2007/01/22/daily4.html Lithia Motors building Oregon's largest auto mall.] "Portland Business Journal", January 22 2007.] As of March 2007 the company operated 108 stores in 15 states with 193 franchises. Lithia's stock has fallen from $35.75 on March 24, 2006, to $3.95 as of July 21, 2008. [ [http://finance.google.com/finance?client=ob&q=NYSE:LAD LAD - Lithia Motors, Inc. - Google Finance ] ]

Product

Lithia sells new cars from General Motors,Chrysler, Toyota, Honda, BMW, Volkswagen, Mazda, and Porsche among others. New cars make up 58% of auto sales, with used cars making up the other 42%. Additional revenues come from auto repair at the dealerships, financing, and insurance sales.

Recent financials

In millions of US dollars.

In April 2008, Lithia posts $1.9 million loss in 1Q. [ [http://autonewsreport.com/2008/04/29/lithia-posts-19-million-loss-in-1q/ Lithia posts $1.9 million loss] Automobile News Report April 29, 2008]

References