Tuesday, Sep. 22, 2020, 02:58 PM
Expanding its Southeastern regional presence, Lithia Motors has purchased Jim Cogdill CJDR in Knoxville, Tenn.
The move marks Lithia’s entrance into the Tennessee market, with the company serving Knoxville and neighboring communities.
Lithia expects the Knoxville location to add $90 million in annualized revenue.
That will bring Lithia’s total network expansion to more than $1.7 billion in revenue so far in 2020, according to the company.
“We welcome the Knoxville team and their dedication to continuing to serve their community,” Lithia Motors president and chief executive officer Bryan DeBoer said in a news release.
DeBoer said that with the growth of the company’s physical network, Lithia’s ability to provide convenient and affordable new vehicle, used vehicle, service and parts services to customers is expanded.
“Together, with our Driveway digital home channel, we are providing flexible and complete vehicle ownership solutions wherever, whenever and however consumers desire,” DeBoer said.
The acquisition was funded through the use of free cash flow and existing on-balance sheet capacity.
Lithia says that in reaching more than 92% of the United States, it has built the broadest coast-to-coast automotive retail network. It adds that it has created “the fulfillment foundation of its omni-channel offerings.”
The company says it is “pragmatically and profitably” modernizing the industry, doing that through its mission of “growth powered by people.”