Lithia & Driveway (LAD) Expands in North Central Region, Completes Second Driveway Finance ABS Offering, and Debuts New Driveway Technology
MEDFORD, Ore., Sept. 20, 2022 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) announced today they have expanded their north central footprint with the purchase of five stores from the Wilde Automotive Group in Wisconsin.
"We are excited to welcome these high performing teams to our Lithia & Driveway family," said Bryan DeBoer, Lithia & Driveway President and CEO. "Their continuous pursuit of excellence has earned them numerous awards including the President's recognitions for both Honda stores and the Toyota store, as well as excellent reputations for serving their customers and communities."
The Wisconsin group was started by Harold Wilde in 1966 and includes Wilde Toyota, Wilde Subaru, Wilde Honda, Wilde CJDR and East Towne Honda. Together, these stores are projected to generate $625 million in annualized revenue. LAD expects to complete network optimization (divestitures) of approximately $625 million in annualized revenues in 2022. The pipeline of opportunities to continue network expansion remains robust, driving LAD to another banner year of growth.
Driveway Finance Corporation (DFC) completed its second issuance of securities backed by its originated auto loan portfolio, raising over $298 million of additional capital to fund growth.
"DFC continues to receive favorable pricing and credit ratings," said Chuck Lietz, Vice President, Finance. "We're confident in our ability to fund DFC using a combination of our conduit facilities and securitizations, enabling us to grow DFC in the coming years and support LAD's achievement of more than one dollar in EPS for each billion dollars in revenue."
DFC originations now account for approximately 10% of LAD's overall business and are expected to grow to 15% in the coming years. This growing income stream further diversifies LAD's business model, expands profitability, and enhances consumer loyalty with its stores, and its national Driveway and GreenCars brands.
Driveway activated Freeway, a state-of-the-art customer relationship management (CRM) and workflow platform, empowering its Care Centers to serve customers more seamlessly and efficiently as they buy, finance, sell, and service their vehicles from the comfort of their homes.
"We are excited to deploy Freeway, our latest strategic platform to further fuel the growth of Driveway and omni-channel capabilities at LAD," said George Hines, LAD's Chief Innovation and Technology Officer. "We create competitive advantage by leveraging technology and data to anticipate the needs of our customers. Our Freeway platform empowers our Driveway Care Centers with a unified view of our customer's journey to meet their needs most efficiently."
LAD is a growth company focused on profitably consolidating the largest retail sector in North America through providing personal transportation solutions wherever, whenever, and however consumers desire.
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SOURCE Lithia Motors, Inc.