Lithia buys 3 dealerships from Elder Automotive

Lithia Motors Inc. has expanded its presence in Michigan and Florida, buying three Ford dealerships from Elder Automotive Group, of Troy, Mich., and the Elder family.

The nation's second-largest new-vehicle retailer said Tuesday that it bought Elder Ford of Tampa to aid its growth in Florida, while it purchased Elder Ford of Troy and Elder Ford of Romeo, both in metro Detroit, helping add scale in Michigan after Lithia bought Suburban Collection in April. A transaction date wasn't immediately disclosed.

The three Ford stores are expected to generate $425 million in annual revenue. A purchase price wasn't disclosed, but Lithia said it paid for the dealerships using capacity on its balance sheet.
 

"The Elder Auto Group has an impeccable reputation for quality customer service, a passion for all things Ford and will be a seamless fit," Lithia CEO Bryan DeBoer said in a statement.

The Elder group long had been owned by Irma Elder, the first woman to own a Ford dealership in the Detroit area, and who was named in 2000 by Automotive News as one of its 100 Leading Women in the North American Auto Industry.

Irma and her late husband James opened the Troy Ford dealership in 1967 and when he died in 1983, Irma took over the company and expanded the business.

She died in 2014 at age 84 and her family has continued to run the business, with son Robert serving as president.

Elder Automotive also has Jaguar-Land Rover stores in Florida and Michigan, a Hyundai-Genesis store in Michigan and a Jaguar dealership in Florida, according to its website.

With the three Ford stores, Lithia said it has acquired dealerships this year that are expected to generate nearly $7 billion in revenue.

Lithia, of Medford, Ore., ranked No. 3 on Automotive News' most recent list of the top 150 dealership groups based in the U.S., retailing 171,168 new vehicles in 2020. But the Suburban Collection acquisition makes Lithia the second-largest group going forward.