Lithia in position to displace AutoNation as No. 1 auto retailer

Lithia Motors Inc. sold more new vehicles than rival AutoNation Inc. for a third consecutive quarter, putting it in position to end AutoNation's streak of more than two decades as the industry's largest retailer.

Lithia said Oct. 19 that its new-vehicle sales rose 4.3 percent to 69,743 in the third quarter, including a small but undisclosed number sold in Canada. AutoNation on Thursday, Oct. 27, said it sold 55,565 new vehicles in the third quarter, down 4.7 percent.

Through the first nine months of the year, Lithia sold 203,437 new vehicles, up 3.8 percent. AutoNation sold 169,897 new vehicles in the same time period, a drop of 17 percent.

That's a difference of 33,540 heading into the fourth quarter. The gap between the two auto retailers has gotten wider during the course of 2022.

Lithia, which has been buying up dealerships in recent years and continued that growth with a number of acquisitions in 2022, was ahead of AutoNation by 19,362 vehicles at midyear and had a lead of 8,500 vehicles at the end of March.

Tom Dobry, Lithia's vice president of strategic operations, said the company's sales growth reflects progress on its goal to deliver and service vehicles within any 100-mile radius in the country.

"We think it is our decentralized business model that gives our local operators and leaders the control to make the decisions that are right for their consumers in their local market," Dobry told Automotive News this month. "We think we can just be a lot more nimble this way, whether it's by manufacturer or by that local market."

AutoNation didn't respond to a request for comment on falling to second place so far this year.

Lithia, based in Medford, Ore., also has bested AutoNation this year on sales of new and used vehicles combined. Lithia retailed 439,367 vehicles overall through the third quarter, a 9.4 percent gain, while AutoNation sold 402,095, down 7.5 percent.

Lithia's most recent auto dealership acquisition, which closed in September, was a five-store deal in Wisconsin. Lithia's aggressive dealership acquisition strategy helped it pass longtime No. 2 Penske Automotive Group Inc. in new-vehicle sales last year.

AutoNation, of Fort Lauderdale, Fla., acquired 20 franchised dealerships in 2021 in two large transactions, but has since sold two of those stores. AutoNation last week said it is buying four dealerships in Colorado in a deal that is set to close before year-end.

Gail Kachadourian Howe contributed to this report.