MEDFORD, Ore. — Dealership acquisitions, already a hallmark of Lithia Motors Inc.‘s long-term growth strategy as it became the country’s largest seller of new vehicles – including the October 2022 acquisition of Airstream Adventures – its will play an even bigger role in an update to its audacious plan to reach $50 billion in annual revenue by the end of 2025, according to a report by Automotive News.
CEO Bryan DeBoer said Lithia’s network development, or acquisition, target is now $25 billion in revenue, up from the previously stated $20 billion.
The change stems from Lithia pulling back on its overall revenue target for Driveway, its online sales platform, by $5 billion, DeBoer said.
“We just hit 75% of the way through our initial network development plan,” DeBoer said in a wide-ranging interview last week at the auto retail giant’s headquarters here. “And we had just reached [the] halfway point of the 2025 plan. So we thought that was an easy give.”
Lithia bought 25 U.S. franchised dealerships last year, down from 67 in 2021, according to data tracked by Automotive News.
In its March proxy statement, Lithia said its 2021 acquisitions achieved a return on investment of 30%, ahead of its 15% target.
Click here to read the full report by Automotive News.
Source: https://rvbusiness.com/airstream-adventures-owner-lithia-reports-revenue-increase/
