Lithia Motors Sees Chrysler Re-Organization as Net Positive

MEDFORD, Ore.--Lithia Motors, Inc. 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.