In a quarter expected to showcase the harsh economic impact of a pandemic-induced recession, Lithia Motors Inc. posted record-high adjusted profits that sent the stock price to a record of its own.
And as vehicle shoppers spent more time at home, the No. 3 U.S. auto retailer launched a national brand focused on serving customers outside of a physical dealership.
Driveway, which lets customers purchase or sell vehicles online and schedule at-home service, is expected in six regions by 2023 and should reach $9 billion in annual revenue in five years. Alongside growth through acquisitions, the portal is a key driver in a plan to nearly quadruple Lithia's annual revenue to $50 billion in five years, up from its current revenue of $13 billion. The venture also aims to continue the increased productivity Lithia dealerships have experienced during the crisis using digital retailing tools and remote processes.