Lithia Motors Inc. has surpassed AutoNation Inc. to become the top automotive retailer in the United States, retailed 271,596 new vehicles in 2022, which is more than 40,000 vehicles more than AutoNation’s 229,971 new vehicles. This impressive feat was made possible by Lithia’s multiyear dealership buying spree and conscious decision to use the majority of its cash flow towards acquisitions. AutoNation, which had held the top spot since 1997, had only acquired 20 franchised dealerships in 2021 while Lithia acquired several stores and a Harley-Davidson store in Canada and RV stores in the Western U.S. in October. The company is aiming for $50 billion in annual revenue by the end of 2025. Despite AutoNation’s low inventory and days’ supply, Lithia’s sales lead over AutoNation widened throughout the year, with a lead of 33,540 vehicles through the third quarter. AutoNation’s title as “America’s largest and most admired automotive retailer” has been changed to “America’s most admired automotive retailer”. Lithia’s rise to the top began in 1999, when it first cracked the top 10, and has since moved up the ranking, reaching the No. 3 spot in 2018 and the No. 2 spot in 2021.
It is an impressive feat for Lithia Motors Inc. to have surpassed AutoNation Inc. to become the top automotive retailer in the United States. The company’s multiyear dealership buying spree and conscious decision to use the majority of its cash flow towards acquisitions has paid off, as it retailed 271,596 new vehicles in 2022, which is more than 40,000 vehicles more than AutoNation’s 229,971 new vehicles. AutoNation, which had held the top spot since 1997, had only acquired 20 franchised dealerships in 2021 while Lithia acquired several stores and a Harley-Davidson store in Canada and RV stores in the Western U.S. in October. The company is aiming for $50 billion in annual revenue by the end of 2025 and its sales lead over AutoNation widened throughout the year, with a lead of 33,540 vehicles through the third quarter.
Lithia’s rise to the top began in 1999, when it first cracked the top 10, and has since moved up the ranking, reaching the No. 3 spot in 2018 and the No. 2 spot in 2021. It is clear that the company’s strategy to focus on acquisitions has paid off and will continue to do so in the future. The company’s CEO Bryan DeBoer stated that they will continue to establish the foundation for massive competitive advantages and size. AutoNation’s title as “America’s largest and most admired automotive retailer” has been changed to “America’s most admired automotive retailer”, showing the impact of Lithia’s rise to the top.
It is clear that Lithia Motors Inc. has become a major player in the automotive retail industry. The company’s success can be attributed to its focus on acquisitions and its conscious decision to use the majority of its cash flow towards them. The company’s strategy has paid off, with Lithia’s sales lead over AutoNation widening throughout the year, and its goal of $50 billion in annual revenue by the end of 2025 looks achievable. AutoNation’s title as “America’s largest and most admired automotive retailer” has been changed to “America’s most admired automotive retailer”, showing the impact of Lithia’s rise to the top. It is clear that Lithia Motors Inc. is set to remain the top automotive retailer in the United States for the foreseeable future.
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