Lithia Motors barrels on with extra dealership acquisitions

Different potential acquisitions are in play. In April, Lithia had dealerships beneath contract value $1.9 billion in annual income.

Tom Dobry, vice chairman of promoting for Lithia, stated he could not touch upon what number of dealerships Lithia now has beneath contract to purchase, nor how a lot in annual income they might generate.

He additionally declined to touch upon the gross sales quantity of the newly acquired shops.

Nevertheless it appeared within the first quarter that Lithia might have pulled forward of AutoNation within the variety of new automobiles bought.

AutoNation stated it bought 56,442 new automobiles within the U.S. within the first quarter, whereas Lithia reported new-vehicle gross sales of 64,942, together with a small however undisclosed quantity bought in Canada.

Lithia, which purchased its first shops in Florida in 2019, final week purchased seven Lehman Auto World dealerships in southern Florida from Invoice Lehman Jr.: Largo Honda in Florida Metropolis; Doral Hyundai-Genesis, Doral Kia and Lehman Mitsubishi in Miami; and Lehman Buick-GMC, Lehman Hyundai-Genesis and Lehman Subaru in Miami Gardens.

Invoice Lehman Jr., the dealerships’ principal proprietor, stated in an announcement that he had a “nice run. I am 81 and I feel it is time.

“From a company perspective, there’s continued consolidation within the automotive retail house, so when Lithia expressed curiosity in beginning preliminary conversations with us, I felt that this was not solely the suitable time however the suitable firm.”

Dobry stated the Lehman dealerships are “extremely regarded” and “give us an immediate benefit out there.”

He additionally stated the Lehman retailer names will stay, besides that Lehman Subaru will probably be renamed.

Lithia moreover acquired Esserman Worldwide Acura and Volkswagen dealerships in Doral, Fla., from the Esserman household, stated Alan Haig, president of buy-sell agency Haig Companions in Fort Lauderdale, Fla. Haig represented Lehman within the sale of his dealerships and in addition was concerned within the Lithia-Esserman transaction.

The Florida acquisitions are anticipated so as to add $850 million in annual income, Lithia stated.

The auto retail large additionally final week purchased Henderson Hyundai Superstore/Genesis of Henderson close to Las Vegas from Frank Maione, in line with DCG Acquisitions, a Dave Cantin Group firm that dealt with that transaction. Dave Cantin and George Pero have been the brokers.

That Hyundai-Genesis retailer is predicted so as to add $100 million in annual income and builds on Lithia’s growth within the Las Vegas market, which it entered final yr.

Maione stated he had owned his Hyundai dealership for 21 years. He stated Lithia made him a suggestion “I could not refuse,” and he selected to promote his solely dealership.

Maione stated his Hyundai retailer at peak bought 300 new automobiles a month.

“I’ll miss this retailer, and principally I’ll miss my staff,” he advised Automotive Information.

In separate acquisitions this yr, Lithia additionally purchased three California dealerships in January and three Las Vegas dealerships in March. In Canada, Lithia purchased a Honda dealership close to Toronto in Could. The retailer additionally has bought some dealerships this yr.

Lithia, of Medford, Ore., ranks No. 2 on Automotive Information‘ checklist of the highest 150 dealership teams based mostly within the U.S., retailing 260,738 new automobiles in 2021.