Lithia Motors Inc.
) announced the acquisition of Honolulu Buick GMC Cadillac and
Honolulu Volkswagen stores in Honolulu, Hawaii. The stores are
expected to generate $75 million additional revenues annually.
This is the second acquisition by Lithia in Hawaii in the last 60
days. The company at present has 3 stores in the state. The
company intends to achieve economies of scale through increased
stores in the region.
Lithia acquired the Island Honda of Kahului in Hawaii on Feb 4,
2014. The store, which was the company's first acquisition in
Maui, is expected to add $30 million in annual revenues.
Lithia is aggressively pursuing store acquisitions to expand its
business. On Feb 10, 2014, Lithia took over Hammer Lane
Volkswagen in Stockton, Calif. The store will be renamed as
Volkswagen of Stockton and is expected to generate $20 million
additional revenues annually.
Moreover, in Dec 10, 2013, Lithia announced the acquisition of
Diablo Subaru of Walnut Creek, CA. This store is expected to
contribute $50 million to annual revenues.
Lithia expects this store to turn out to be the largest Subaru
store in the U.S. The strategic location of the store is an
advantage. Moreover, Lithia believes that this store will
complement the existing stores at Reno, NV and Fresno, CA. With
this new acquisition, Lithia now has five Subaru stores.
Lithia Motors is the ninth largest automotive retailer in the
U.S. With 98 stores in 12 states, the company offers 28 new
vehicle brands along with all brands of used vehicle. Currently,
Lithia retains a Zacks Rank #2 (Buy).
Some other automotive retailer stocks worth considering are
Asbury Automotive Group, Inc.
Penske Automotive Group, Inc.
). All these stocks carry the same Zacks Rank as Lithia.
ASBURY AUTO GRP (ABG): Free Stock Analysis
AUTONATION INC (AN): Free Stock Analysis
LITHIA MOTORS (LAD): Free Stock Analysis
PENSKE AUTO GRP (PAG): Free Stock Analysis
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