Lithia & Driveway

What Lithia & Driveway does

Lithia & Driveway, formerly Lithia Motors, is the largest automotive retailer in the United States. Founded in 1946 in Medford, Oregon, and listed on the NYSE under the ticker LAD, the company operates more than 450 dealership locations across the US, UK, and Canada, employs 27,000+ people, and retails vehicles from 54 manufacturer brands. The company is ranked #123 on the Fortune 500 and has publicly stated a long-term revenue target of $75-100 billion, roughly double its current base. The recent rebranding from Lithia Motors to Lithia & Driveway reflects the company's evolution into an integrated omnichannel automotive platform spanning physical dealerships, digital channels, and in-house financial services.

The company generates revenue across three primary streams: new and used vehicle sales, parts and service (which contributes approximately 50-60% of profits), and finance products originated through its Driveway Finance Corporation (DFC) captive lender. DFC originated $840M in Q1 2026, up 71% year-over-year, providing both a high-margin revenue stream and a proprietary credit data asset. The company is also deploying technology to modernize operations, including a $60M long-term partnership with Pinewood Technologies for an AI-powered Dealer Management System and a GreenCars digital platform supporting 2,000+ EV charging ports. The company announced a 2026 operational reorganization centralizing management and consolidating sales and F&I functions to drive margin expansion.

Lithia & Driveway is in active growth mode, having completed the 2024 acquisition of UK-based Pendragon plc (adding ~160 retail locations and establishing its first material non-North American platform) and continuing an aggressive US roll-up in 2025 with the Porsche Beverly Hills, Audi Santa Monica, and Stivers Automotive acquisitions, collectively contributing over $550M in annualized revenue. Strategic priorities articulated by management include continued M&A-led scale expansion, growth of DFC as a captive finance profit center, luxury segment deepening, and the staged deployment of the Pinewood AI DMS to reduce operating cost and improve customer conversion. Full-year 2025 revenue was $37.63B, with Q1 2026 revenue of $9.3B indicating relatively flat organic growth.

Name

Lithia & Driveway

Legal name

Lithia Motors, Inc.

Website

https://lithiadriveway.com

Company type

Public

Founded year

1946

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Lithia & Driveway is the largest US automotive retailer, operating 450+ dealership locations across the US, UK, and Canada. It retails 54 manufacturer brands, offers financing through its Driveway Finance Corporation captive lender, and targets $75-100B in long-term revenue.

Ownership category

akta.pro rank

Product category

Automotive Retail

NAICS

New Car Dealers (441110), Used Car Dealers (441120), Automotive Parts, Accessories, and Tire Retailers (4413)

SIC

Retail-Auto Dealers & Gasoline Stations (5500), Services-Auto Rental & Leasing (No Drivers) (7510), Services-Automotive Repair, Services & Parking (7500)

akta.pro primary industry

Auto & Vehicle Leasing (Personal Use) (FSAKANAA)

akta.pro secondary industry

Tire & Wheel Services (Mount/Balance/Alignment) (TLAKAAAD)

Keywords

• Automotive retail
• Vehicle dealership network
• New and used car sales
• Auto financing services
• Vehicle service and parts

Headquarters

HQ city

Medford

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Supply Chain, Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Vehicle Sales (New and Used): The company generates the majority of revenue from selling new and used vehicles through its dealership network. Over 100,000+ vehicles available from 450+ locations. Used vehicle revenue showed 4.6% same-store increase in Q1 2026.
2. After-Sales Services (Service, Parts, Warranty): Approximately 50-60% of profits come from service and parts operations. After-sales gross profit grew 5.7% in Q1 2026. This includes vehicle maintenance, repairs, parts sales, and warranty services across the dealership network.
3. Finance and Insurance (F&I): F&I gross profit provides high-margin revenue stream. Lithia led all dealership groups with $1.47 billion in total F&I revenue in 2025. F&I gross profit per dealership averaged $3.3 million.
4. Driveway Finance Corporation (Captive Finance): The company's captive finance subsidiary provides auto financing solutions, achieving record loan originations of $840 million in Q1 2026 (up 71% YoY). DFC income was $75 million in 2025, up $67 million year-over-year.

Pricing tiers

Go-to-market motion3 records

Distribution channels6 records

Marketing channels6 records

Core offering

Lithia & Driveway operates the largest automotive dealership network in the United States, selling new and used vehicles across 54 manufacturer brands through 450+ physical locations in the US, UK, and Canada, supported by digital retail platforms (Lithia.com, Driveway.com, GreenCars.com) and a captive finance arm (Driveway Finance Corporation). The company also generates roughly 50-60% of its profits from after-sales service, parts, warranty, and repair operations, and serves UK fleet customers through Driveway Vehicle Solutions.

Product overview

Lithia & Driveway operates a diversified automotive retail platform combining physical dealership operations with digital commerce channels. The portfolio includes Lithia.com for online vehicle inventory browsing across 450+ locations, Driveway.com for end-to-end digital vehicle buying, selling, and servicing, GreenCars for sustainable/EV vehicle education and shopping, and Driveway Finance Corporation (DFC) for captive auto financing. The company operates approximately 450+ locations in the US, UK, and Canada, offering new and used vehicles across 54 manufacturer brands.

Differentiator

Problem solved

Functional benefit

Products and services

• Lithia.com Online vehicle inventory platform allowing customers to browse more than 100,000 new and used vehicles from the network of 450+ physical dealership locations across the US, UK, and Canada.
• Driveway.com Digital platform enabling customers to buy, sell, finance, or set up service for a vehicle from home, integrating online retail with the Lithia & Driveway dealership network.
• GreenCars Proprietary brand focused on accelerating adoption of sustainable vehicles through education, EV shopping tools, and sustainable vehicle content.
• Driveway Finance Corporation (DFC) Captive finance arm providing seamless, straightforward auto financing solutions for vehicle purchases across the Lithia & Driveway dealership network, with $840 million in loan originations in Q1 2026.
• Driveway Vehicle Solutions (UK Fleet & Leasing) UK-based fleet management, leasing, and vehicle solutions business serving corporate fleet customers, managing 12,000+ vehicles across the UK.
• Dealership After-Sales Service and Parts Vehicle maintenance, repair, parts, and warranty services offered through Lithia & Driveway's 450+ dealership service centers; accounts for approximately 50-60% of the company's profits.
• Finance and Insurance (F&I) Products Finance and insurance products attached to vehicle sales, including credit life, extended service contracts, and GAP coverage, generating $1.47 billion in total F&I revenue in 2025 and an average of $3.3 million in F&I gross profit per dealership.

Quantifiable outcome

• Record Q1 2026 revenue of $9.3 billion, up 1% year-over-year
• +4 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Four partnerships are on record, tiered core and minor.

• Pinewood Technologies GroupcoreTechnology or Integration · 12 May 2026Pinewood Technologies Group is implementing a new AI-powered dealer management system across Lithia's US and Canadian dealerships. The partnership includes a $60 million long-term contract for system deployment, with Pinewood acquiring Lithia's stake in their North American joint venture for $76.5 million. Pilot program expected by end of 2026.
• TraXtioncoreTechnology or Integration · 10 February 2026TraXtion awarded Core Preferred Partner status for automated tire and vehicle inspection solutions. TreadSpecX and DamageSpeX diagnostic tools authorized for deployment across Lithia's North American dealership network to automate tire wear and alignment detection and combat tire sales leakage to aftermarket competitors.
• MD Johnson Inc.minorImplementation/ SI/ Consulting Partner · 12 November 2025MD Johnson Inc. served as exclusive advisor on acquisition of Porsche Beverly Hills and Santa Monica Audi dealerships. Geoff Emery was the seller. MD Johnson has completed over $8 billion in transaction work across all brands.
• Pfaff MotorsportscoreGTM or Marketing PartnerLithia & Driveway sponsoring Pfaff Motorsports Lamborghini Temerario GT3 for 2026 IMSA SportsCar Championship. Fifth year of partnership with winning team that has 2 IMSA championships and 35 individual races. Lithia is primary sponsor for 8 of 11 events.

Scale indicators17 records

Recent moves6 records

Expansion highlights6 records

Market position

Competitive moat6 records

Key risks4 records

Key highlights7 records

Customer concentration

• Xx.com/lithiamotors
• Facebookfacebook.com/lithiamotors
• LinkedInlinkedin.com/company/lithia-motors
• Instagraminstagram.com/lithiamotors

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Subsidiaries7 records

Funding overview

Funding rounds2 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A16 records

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Lithia & Driveway