JULY 2008: AROUND THE STATE
Lithia cuts jobs, millions
MEDFORD Lithia
Motors, the eighth-largest U.S. auto group, announced in June
that it would cut $18 million annually in costs because of
falling consumer confidence, tight credit, high gas prices and
sluggish domestic auto sales.
Among the cost-cutting measures, the Medford-based Lithia said
it would restructure store management personnel and duties,
reduce headcount across the company, further centralize offices
by region, sell 10 to 15 of its stores, and postpone further
acquisitions.
Since going public in 1994, the company, helmed by CEO Sid
DeBoer, has been on a tear of acquisitions. In an April 2006
interview with Oregon Business, DeBoer predicted the company
would hit 350 dealerships and $11 billion in revenue by 2014.
“I don’t see anything handicapping us,” he
said then. Lithia currently has 110 stores in 15 states and
posted $3.22 billion in total revenue in 2007.
Three months ago, an internal investigation of Lithia found
“a limited number” of its dealerships had
incorrectly reported car sales to manufacturers as part of
volume-based incentive programs.
