LITHIA & DRIVEWAY EXPANDS RETAIL NETWORK IN US SOUTHEAST REGION
Lithia & Driveway (NYSE: LAD) has expanded its retail network in the U.S. Southeast Region with the acquisition of Sunrise Chevrolet Buick GMC at Collierville, Sunrise Buick GMC at Wolfchase in Memphis, Tennessee, and Woodbridge Hyundai in the greater Toronto area. These acquisitions are expected to generate over $240 million in annualized revenue. This move marks LAD's entry into the Memphis market, which is noted as the most profitable region in the U.S.
The Woodbridge Hyundai store will eventually be relocated to an existing owned facility, enhancing returns. The acquisitions contribute to LAD's year-to-date expected annualized revenue of over $5.6 billion. The company financed these purchases using its existing on-balance sheet capacity.
LAD aims to leverage the goodwill of these dealerships to continue delivering an exceptional retail experience.
- Expansion into the profitable Memphis market with new acquisitions.
- Projected annualized revenue from new stores exceeds $240 million.
- Year-to-date expected annualized revenue acquired exceeds $5.6 billion.
- Woodbridge Hyundai recognized as a 'Best Dealership to Work for' the past five years.
- Financing for acquisitions was done using existing on-balance sheet capacity, indicating strong financial health.
- No specific financial details on the cost of acquisitions disclosed, which might concern some investors.
- The integration of new stores can pose operational challenges and potential risks.
Lithia & Driveway's acquisition of Sunrise Chevrolet Buick GMC and Sunrise Buick GMC in Tennessee, along with Woodbridge Hyundai in the greater Toronto area, marks a strategic expansion in highly profitable markets. This move is poised to generate
Entering the Memphis market with already dominant stores provides Lithia & Driveway a strategic advantage, leveraging existing customer loyalty and market penetration. The recognition of Woodbridge Hyundai as a "Best Dealership to Work For" potentially signals high employee satisfaction and customer service standards, which are key differentiators in the competitive automotive retail space. The Southeast region is noted for its economic growth and this expansion could capitalize on that trend. Investors should consider the regional economic conditions and demographic trends that favor growth in vehicle sales in these markets.
The dominant Sunrise stores in
"We are excited to arrive in
These additions bring LAD's total year-to-date expected annualized revenue acquired to over
About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is one of the largest global automotive retailers providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.
SITES
www.lithia.com
www.investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com
Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on Twitter
https://twitter.com/lithiamotors
https://twitter.com/DrivewayHQ
https://twitter.com/GreenCarsHQ
View original content to download multimedia:https://www.prnewswire.com/news-releases/lithia--driveway-expands-retail-network-in-us-southeast-region-302169041.html
SOURCE Lithia Motors, Inc.
FAQ
What is the impact of LAD's recent acquisitions on its annual revenue?
Which new stores did Lithia & Driveway acquire?
What is the significance of the Memphis market for LAD?
How will the new acquisitions affect LAD's total expected annualized revenue for the year?