Lithia & Driveway Expands Southeast Presence with New Mercedes-Benz Stores

Lithia & Driveway Expands Retail Network in Southeast Region

In a significant move to enhance its automotive retail footprint, Lithia & Driveway (NYSE: LAD) has successfully acquired two Mercedes-Benz dealerships located in Collierville, Tennessee, and Jackson, Mississippi. This strategic expansion not only marks Lithia's inaugural venture into the Mercedes-Benz segment within the Southeast region but also aligns with the company's broader strategy to strengthen its luxury brand portfolio amidst rising consumer demand for premium vehicles.

Lithia Driveway's President and CEO, Bryan DeBoer, expressed his excitement regarding this expansion, stating, “We are thrilled to expand our presence in the Southeast with the addition of these two premier Mercedes-Benz stores.” DeBoer highlighted that the acquisition is expected to yield an impressive annual revenue of approximately $220 million, complementing Lithia's goal of growing in high-performing markets.

Having already accumulated $400 million in expected annualized revenue so far this year through various acquisitions, Lithia Driveway continues to demonstrate strong growth in the automotive retail sector. The recent acquisition enhances their presence in a marketplace where competition for luxury automotive brands is keen.

The two new dealerships not only signify a larger footprint but also enhance the diversity of Lithia's offerings. Given the high-performing nature of the regions involved, this strategic entry into the Mercedes-Benz brand is designed to leverage existing operational strengths while also tapping into new customer demographics. The acquisition was financed through existing on-balance sheet capacities, illustrating Lithia’s proactive stance towards capital allocation and investment in impactful growth opportunities.

Share Repurchase and Commitment to Capital Management

In addition to the expansion of its retail network, Lithia Driveway has provided an update regarding its ongoing share repurchase strategy. To date in 2025, the company has invested $230 million to buy back approximately 729,000 shares, representing around 2.8% of its outstanding shares. With $589 million still available for further repurchase under the current authorization, management maintains a balanced approach to capital allocation, recognizing current acquisition plans alongside share buyback initiatives.

The company's ability to balance acquisitions while investing in its own stock signifies a strong commitment to delivering shareholder value. By maintaining a parity between acquisitions and share repurchases, Lithia Driveway illustrates a comprehensive approach to developing its business while enhancing shareholder returns.

The Road Ahead for Lithia Driveway

Lithia & Driveway stands out as a leading global automotive retailer that offers a comprehensive range of products and services designed to enhance the vehicle ownership experience. This acquisition, along with existing operations, positions the company to capitalize on the growing trend of consumers preferring luxury vehicles, particularly in regions with increasing affluence.

As the automotive landscape evolves with technological advancements and shifting consumer preferences, Lithia Driveway is well-positioned to spearhead innovation in personal transportation solutions. The move into Mercedes-Benz dealerships in Collierville and Jackson is a clear indication of Lithia's commitment to adapting to market trends and consumer needs.

In conclusion, the expansion into the Southeast with these luxury automotive brands exemplifies Lithia & Driveway's dedication to strategic growth. With strong foundations laid by the existing teams at these new locations, Lithia Driveway aims to accelerate progress and unlock the full potential of this high-potential market, reinforcing its status as a market leader in the automotive retail sector.