Lithia Motors Sees Chrysler Re-Organization as Net Positive
May 14 2009 - 4:27PM
Business Wire
Lithia Motors, Inc. (NYSE: LAD) announced today that Chrysler
identified two stores that will not be continued in the New
Chrysler. These dealerships are located in Omaha, Nebraska and
Colorado Springs, Colorado. Additionally, Lithia may be awarded new
franchises in five markets, adding Chrysler or Jeep brands to
already existing outlets.
Sid DeBoer, Chairman and CEO of Lithia, commented, �Since the
inception of Chrysler�s 'Genesis' brand alignment, aimed to
consolidate all three brands under one roof, we have been actively
positioning ourselves for success. With today�s announcement, we
are a net beneficiary as we gain more than we lose and the results
are in-line with our expectations. We would like to express our
sincere sympathy for dealers, suppliers and store personnel across
the country that will be impacted by today�s announcement. Dealers
are critical to auto manufacturers as they distribute products and
services in an efficient and profitable manner.�
Mr. DeBoer continued, �We are pleased to report that since the
Chrysler Chapter 11 filing, our store traffic and sales results
have not been negatively impacted. We continue to see strong
incentives and consumer financing is available. Warranty claims
remain fully covered for the customer. Our operating results remain
on track and our remaining stores will have less competition. We do
not believe that any one-time charges that may be associated with
the affected stores will be material to our debt covenants.
All parties involved are to be applauded for effectively
managing the process and maintaining a �business-as-usual� status.
We are excited about the future of New Chrysler in global
partnership with Fiat,� concluded Mr. DeBoer.
About Lithia
Lithia Motors, Inc. is a Fortune 700 Company, selling 27 brands
of new and all brands of used vehicles at 91 stores, which are
located in 13 states. Internet sales are centralized at
www.Lithia.com. Lithia also sells used vehicles; arranges finance,
warranty, and credit insurance contracts; and provides vehicle
parts, maintenance, and repair services at all of its
locations.
Additional
Information
For additional information on Lithia Motors, contact the
Investor Relations Department: (541) 776-6591 or log-on to:
www.lithia.com � go to Investor Relations
Forward Looking
Statements
This press release includes forward looking statements within
the meaning of the �Safe-Harbor� provisions of the Private
Securities Litigation Reform Act of 1995, which management believes
are a benefit to shareholders. These statements are necessarily
subject to risk and uncertainty and actual results could differ
materially due to certain risk factors, including without
limitation, future economic conditions and others set forth from
time to time in the company�s filings with the SEC. We make
forward-looking statements about potential franchise assumptions,
competitive effects of Chrysler�s restructuring and costs
associated with store closures. Specific risks in this press
release include termination of dealership locations, business
trends, debt covenant compliance and operating results. We do not
intend to update these forward-looking statements. Readers should
consider any forward-looking statements in light of this
explanation, and we caution readers about relying on
forward-looking statements.
Lithia Motors (NYSE:LAD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Lithia Motors (NYSE:LAD)
Historical Stock Chart
From Jul 2023 to Jul 2024