Lithia And Shift Expand Partnership; Utilize Lithia For Growth
MEDFORD, Ore., Dec. 20, 2018 /PRNewswire/ -- Lithia Motors, Inc. (NYSE: LAD) and Shift, a San Francisco-based ecommerce retailer, announced the initial union of Lithia's physical infrastructure with Shift's digital sales process in northern California. This operational partnership provides Shift with capacity to store, recondition and deliver vehicles leveraging Lithia's nationwide fulfillment network. As a result of the milestone, Lithia has increased its ownership in Shift.
Shift is a digital platform that provides the vehicle purchase and selling experience on demand and at the customer's desired location. Shift, the only online retailer with a try-before-you-buy test drive, offers the broadest selection of high quality one- to ten-year old owned vehicles for consumers to choose from. Shift currently operates throughout California and will sell approximately 8,500 vehicles in 2018. In September, Lithia announced a strategic partnership with Shift and led their series D fundraising round with a $54 million investment, becoming the largest shareholder, as well as supported Shift in obtaining a $50m floor plan facility.
Bryan DeBoer, Lithia's President and CEO stated, "This is an opportunity to leverage our facilities and operational teams to expand the partnership with Shift and deploy technology across both companies in a way that serves consumers wherever, whenever and however they desire."
"We anticipate doubling sales in 2019, and utilizing latent capacity within Lithia's existing fulfillment network helps us expand quickly and with minimal capital investment," said Toby Russell, co-CEO of Shift. "Access to vehicle storage and delivery capacity, along with the previously announced vehicle floorplan facility, creates the pathway to reach a billion dollars in annual revenue in the next few years."
About Lithia
Lithia Motors, Inc. is one of the largest providers of personal transportation solutions in the United States and is among the fastest growing companies in the Fortune 500 (#294-2018). Consumers can buy, sell and service vehicles digitally or through our 180 nationwide locations. Our mission statement, Growth Powered by People, drives us to continuously improve and to give back to our communities.
Sites
www.lithia.com
www.shift.com
www.lithiainvestorrelations.com
www.lithiacareers.com
Lithia Motors on Facebook
http://www.facebook.com/LithiaMotors
Lithia Motors on Twitter
http://twitter.com/lithiamotors
Contact:
John North
Senior Vice President and Chief Financial Officer
(541) 618-5748
SOURCE Lithia Motors, Inc.
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