Profits Rise 48 Percent for Lithia
MEDFORD, Ore. — Lithia Motors Inc. third-quarter profits rose 48 percent from a year ago to 23.3 million. Revenues totaled $888 million, up 24 percent from a year ago. On a same-store basis, new-vehicle sales increased 30 percent, while used-sales rose 24 percent. Service, body and parts sales increased 6 percent, while F&I revenues grew by 36.4 percent.
“Our stores delivered solid results in the third quarter,” said Bryan DeBoer, president and CEO. “We continue to focus on improving vehicle sales volumes, service revenues and customer satisfaction.”
From the year-ago period, F&I profit per retail unit increased from $1,027 to $1,101. The company also arranged financing for 76 percent of vehicles sold, with group also recording a service-contract penetration rate of 41 percent. Its lifetime oil change products penetrated at a 35 percent clip during the quarter. For the first nine months of 2012, revenue from continuing operations increased 27 percent to $2.5 billion. Same-store new-vehicle sales increased 30 percent, while used-vehicle sales increased 21 percent.
Sid DeBoer, founder and executive chairman, commented, "New-vehicle sales volumes in the United States continue to recover. New safety and technology features, improved fuel economy and improving consumer credit markets, coupled with an aging fleet of vehicles, are all tailwinds for increasing sales levels through the remainder of 2012 and in 2013. Our new leadership team and a revitalized group of store managers is poised to continue this growth."
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →