Lithia Motors Inc.
) announced the acquisition of Vic Alfonso Cadillac and Braley
& Graham Buick GMC in Portland, OR. Lithia will be renaming the
stores as Buick GMC of Beaverton and Cadillac of Portland Lloyd
Center. The stores are expected to increase Lithia's revenues by
$60 million annually.
Lithia is contented with its expansion as it makes the company the
sole Cadillac dealer in the city. It will also increase Lithia's
BMW and Mercedes Benz stores in Portland. With the acquisition of
General Motors Co.
) stores, Lithia now operates with 7 stores in Portland.
Lithia is aggressively pursuing store acquisitions to expand its
business. On Apr 2, 2014, Lithia took over Access Ford store in
Corpus Christi, TX and opened Lithia Chrysler Jeep Dodge of Wasilla
in Wasilla, AK. The company expects that these stores will add $105
million to its annual revenues.
On Mar 7, 2014, Lithia announced the acquisition of Honolulu Buick
GMC Cadillac and Honolulu Volkswagen stores in Honolulu, HI. The
stores are expected to generate $75 million additional revenues
annually. The company presently has 3 stores in the state and
intends to achieve economies of scale by increasing the store count
in the region.
On Feb 10, 2014, Lithia acquired Hammer Lane Volkswagen in
Stockton, CA. The store was renamed as Volkswagen of Stockton and
is expected to generate $20 million additional revenues annually.
On Feb 4, 2014, Lithia acquired the Island Honda of Kahului in
Hawaii. The store, which was the company's first acquisition in
Maui, is expected to add $30 million in annual revenues.
Lithia Motors is the eighth largest automotive retailer in the U.S.
With 101 stores in 12 states, the company offers 28 new vehicle
brands along with all brands of used vehicles. Currently, Lithia
retains a Zacks Rank #1 (Strong Buy).
Some other automotive retailer stocks worth considering are
Asbury Automotive Group, Inc.
Rush Enterprises, Inc.
). Both these stocks carry a Zacks Rank #2 (Buy).
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GENERAL MOTORS (GM): Free Stock Analysis Report
LITHIA MOTORS (LAD): Free Stock Analysis Report
ASBURY AUTO GRP (ABG): Free Stock Analysis
RUSH ENTRPRS-A (RUSHA): Free Stock Analysis
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