Lithia Motors
Encyclopedia
Lithia Motors, Inc. is automotive dealership network headquartered in Medford, Oregon
, primarily serving the western United States
. It is the seventh largest automotive retailer in the United States
, and ranks as number 615 on the Fortune 1000 list of the largest companies in the U.S. for 2007. They ranked fourth in their industry for America's Most Admired Companies in 2007.
. 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.
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. The company had increased dealerships to 88 by 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. That year they also settled with the Equal Employment Opportunity Commission
for workplace discrimination. In early 2007 began plans to build a 60 acres (242,811.6 m²) auto mall north of downtown Medford and to build a new corporate headquarters in downtown Medford.
In 2009, with plans to build a new corporate headquarters stalled, the company, Medford Urban Renewal Agency and the City of Medford announced they had scrapped the downtown plans and were in negotiations to develop a smaller project.
As of March 2007 the company operated 108 stores in 15 states with 193 franchises. As of August 2009 the company operates 91 stores in 13 states.
Lithia's stock has fallen from $35.75 on March 24, 2006, to as low as $1.55 on Oct. 27, 2008. Recently as 2009-2010 Lithia stock has varied in a 52-week high/low range of $16.49/$5.18 per share respectively.
,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.
In April 2008, Lithia posts $1.9 million loss in 1Q. 2010 data is 1Q only SEC filings
Medford, Oregon
Medford is a city in Jackson County, Oregon, United States. As of the 2010 US Census, the city had a total population of 74,907 and a metropolitan area population of 207,010, making the Medford MSA the 4th largest metro area in Oregon...
, primarily serving the western United States
Western United States
.The Western United States, commonly referred to as the American West or simply "the West," traditionally refers to the region comprising the westernmost states of the United States. Because the U.S. expanded westward after its founding, the meaning of the West has evolved over time...
. It is the seventh largest automotive retailer in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, and ranks as number 615 on the Fortune 1000 list of the largest companies in the U.S. for 2007. They ranked fourth in their industry for America's Most Admired Companies in 2007.
History
Lithia Motors began in 1946 when Walt DeBoer opened a single car dealership in Ashland, OregonAshland, Oregon
Ashland is a city in Jackson County, Oregon, United States, near Interstate 5 and the California border, and located in the south end of the Rogue Valley. It was named after Ashland County, Ohio, point of origin of Abel Helman and other founders, and secondarily for Ashland, Kentucky, where other...
. 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
Dodge
Dodge is a United States-based brand of automobiles, minivans, and sport utility vehicles, manufactured and marketed by Chrysler Group LLC in more than 60 different countries and territories worldwide....
dealership
Car dealership
A car dealership or vehicle local distribution is a business that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to do the selling...
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.
In December 1996 the company went public, trading on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
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. The company had increased dealerships to 88 by 2005. Lithia was fined $500,000 by the state of Alaska
Alaska
Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...
in 2006 for charging car buyers illegal document preparation fees at their Alaska dealerships. That year they also settled with the Equal Employment Opportunity Commission
Equal Employment Opportunity Commission
The U.S. Equal Employment Opportunity Commission is an independent federal law enforcement agency that enforces laws against workplace discrimination. The EEOC investigates discrimination complaints based on an individual's race, color, national origin, religion, sex, age, perceived intelligence,...
for workplace discrimination. In early 2007 began plans to build a 60 acres (242,811.6 m²) auto mall north of downtown Medford and to build a new corporate headquarters in downtown Medford.
In 2009, with plans to build a new corporate headquarters stalled, the company, Medford Urban Renewal Agency and the City of Medford announced they had scrapped the downtown plans and were in negotiations to develop a smaller project.
As of March 2007 the company operated 108 stores in 15 states with 193 franchises. As of August 2009 the company operates 91 stores in 13 states.
Lithia's stock has fallen from $35.75 on March 24, 2006, to as low as $1.55 on Oct. 27, 2008. Recently as 2009-2010 Lithia stock has varied in a 52-week high/low range of $16.49/$5.18 per share respectively.
Product
Lithia sells new cars from General MotorsGeneral Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
,Chrysler, Toyota, Honda, BMW, Volkswagen, Mazda, and Porsche
Porsche
Porsche Automobil Holding SE, usually shortened to Porsche SE a Societas Europaea or European Public Company, is a German based holding company with investments in the automotive industry....
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
Revenue in millions of US dollars.| Year | Revenue | EPS | Dividend |
|---|---|---|---|
| 2003: | $2,412 | $1.92 | $0.14 |
| 2004: | $2,598 | $2.13 | $0.23 |
| 2005: | $2,852 | $2.54 | $0.44 |
| 2006: | $3,173 | $1.77 | $0.54 |
| 2007: | $3,219 | $1.06 | $0.56 |
| 2008: | $2,137 | $(12.22) | $0.33 |
| 2009: | $1,749 | $0.41 | N/A |
| 2010: | $463(t) | $0.05 | $0.05 |
In April 2008, Lithia posts $1.9 million loss in 1Q. 2010 data is 1Q only SEC filings