Lithia Motors, Inc. (Lithia), a global automotive retailer, provides an array of products and services throughout the vehicle ownership lifecycle.
Simple, convenient, and transparent experiences are offered through the company’s comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. As of December 31, 2024, the company operated hundreds of locations representing multiple brands in the United St...
Lithia Motors, Inc. (Lithia), a global automotive retailer, provides an array of products and services throughout the vehicle ownership lifecycle.
Simple, convenient, and transparent experiences are offered through the company’s comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. As of December 31, 2024, the company operated hundreds of locations representing multiple brands in the United States, the United Kingdom, and Canada.
The company offers a wide array of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, financing and insurance products, and aftersales automotive repair and maintenance services.
Business Strategy
The company seeks to provide customers choice with a seamless, blended online and physical retail experience, broad selection, and access to specialized expertise and knowledge. The company’s comprehensive network provides convenient touch points for customers and provides services throughout the vehicle life cycle.
The company’s Driveway and GreenCars brands, as well as its online customer portal, complement in-store experiences in the United States and provide convenient, simple, and transparent platforms that serve as its e-commerce home solutions and allow it to deliver differentiated, proprietary digital experiences. Enhancing its business, the company’s captive auto financing division allows it to provide financing solutions for customers and diversify its business model with adjacent products. The company’s strategy is to grow through acquisition and network optimization.
Marketing
The company’s national, regional, and local brands connect with consumers through advertising tailored to the individual brand and market. Utilizing data and omnichannel communications, it strives to create deeper and richer offerings to build lifelong loyalty throughout the vehicle ownership lifecycle.
With a vast selection represented by the U.S. new and preowned vehicle inventory for sale online, the company employs search engine optimization, search engine marketing, online display, retargeting, social advertising, traditional media, and direct marketing to reach consumers.
Most consumers begin their shopping, buying, or selling activity on the company’s store websites, Driveway.com, and GreenCars.com. The company’s proprietary customer lifecycle communication platform targets specific stages in the shopping process or ownership lifecycle. In an industry where the competition often relies on third parties to manage their customer data, the company manages its data internally. This strategy allows it to leverage customer insights across many revenue streams and goes beyond automotive needs.
Driveway, the company’s online experience, puts customers in control of every aspect of their car ownership. Driveway provides a differentiated retail experience for customers who prefer the simplicity of online shopping and the optionality of home delivery. This platform allows the company to significantly increase the geographic reach of its network.
With the industry transitioning to more sustainable practices and alternative-fuel vehicles, the company is excited that GreenCars, its online education resource for sustainable mobility, had approximately 11.2 million unique visitors in 2024 at GreenCars.com. GreenCars is a source of knowledge designed to promote the acceleration of electric vehicle adoption by educating consumers on topics, such as fuel-efficient offerings from model comparisons, personalized incentives, and local rebates to charging networks. GreenCars connects consumers with the largest new and preowned inventory when they are ready to purchase a sustainable vehicle. GreenCars.com was an important part of the shopping and selection process for 19,000 vehicles across the company’s dealer network in 2024.
Franchise Agreements
Each of the company’s stores operates under a separate franchise agreement with the manufacturer of the new vehicle brand it sells.
Competition
The company competes primarily with other automotive retailers, both publicly- and privately-held, and other used-only automotive retailers, such as CarMax, Carvana, and Cazoo.
Regulation
The Consumer Financial Protection Bureau (CFPB) has supervisory authority over large non-bank auto finance companies, including Driveway Finance Corporation (DFC).
Most of the company’s stores use above-ground storage tanks, and, to a lesser extent, underground storage tanks, primarily for petroleum-based products. Storage tanks are subject to periodic testing, containment, upgrading, and removal under the Resource Conservation and Recovery Act, as well as its state law counterparts.
In addition, water quality protection programs under the federal Water Pollution Control Act (commonly known as the Clean Water Act), the Safe Drinking Water Act, and comparable state and local programs govern certain discharges from the company’s operations.
Seasonality
The company’s North American operations generally experience lower volumes in the first quarter of each year (year ended December 31, 2024) due to consumer purchasing patterns and inclement weather in certain of its markets. The company’s U.K. operations generally experience higher volumes in the first and third quarter of each year, due primarily to new vehicle registration practices in the United Kingdom.
History
Lithia Motors, Inc. was founded in 1946. The company was incorporated in Oregon in 1968.