Mission Statement, Vision, & Core Values of Lithia Motors, Inc. (LAD)

Are you curious about what drives one of the largest automotive retailers in the U.S.?

Lithia Motors Inc. (LAD), a Fortune 500 company, achieved a record revenue of $36.2 billion in 2024. But what principles guide this growth and success? Dive in to explore the mission, vision, and core values that shape Lithia's approach to the automotive industry and its commitment to customers, employees, and communities.

Discover how these guiding statements translate into operational excellence and contribute to Lithia's position as a leader in providing personal transportation solutions, with a network spanning over 298 locations in the U.S., 15 in Canada and 151 in the UK.

Lithia Motors, Inc. (LAD) An Overview of

Lithia Motors, Inc. (LAD) was founded in 1946 in Ashland, Oregon. It has grown to become one of the largest automotive retailers in the United States. Lithia operates a network of dealerships offering a wide array of new and used vehicles, as well as automotive repair, maintenance, and financing services. As of April 2025, Lithia continues to expand its reach through acquisitions and organic growth, focusing on delivering a seamless customer experience across its various channels.

In 2024, Lithia Motors achieved record-breaking revenue, driven by strong performance in both new and used vehicle sales, as well as its service, parts, and collision repair businesses. The company's strategic focus on network density and market expansion has fueled significant growth. Lithia's revenue reached $33.9 billion in 2024, a 14.8% increase from 2023. This growth was supported by a 12% increase in same-store sales and strategic acquisitions that expanded Lithia's footprint.

Lithia Motors stands out as a leader in the automotive retail industry due to its innovative approach to customer service, strategic acquisitions, and focus on long-term growth. The company's mission, vision, and core values play a crucial role in shaping its corporate culture and guiding its business strategies. To understand why Lithia is successful, keep reading this blog or find out more here: Breaking Down Lithia Motors, Inc. (LAD) Financial Health: Key Insights for Investors

Lithia Motors, Inc. (LAD) Mission Statement

Lithia Motors, Inc.'s mission statement is 'Growth Powered by People'. This succinct statement encapsulates the company's focus on expansion and development, driven by its employees and their capabilities. The mission serves as a guiding principle for the company's strategic decisions and operational activities, emphasizing the importance of human capital in achieving its objectives.

The mission statement is composed of three core components:

• Growth
• Powered
• People

Each component plays a crucial role in defining Lithia's approach to business and its long-term vision. Let's explore each of these components in detail.

Growth

For Lithia Motors, growth is not merely about increasing revenue or expanding its physical footprint. It represents a holistic approach to development, encompassing market share, customer base, and service offerings. Growth is a fundamental objective, reflecting the company's ambition to continually improve and extend its reach within the automotive industry. Lithia's growth strategy is multifaceted, including acquisitions, organic expansion, and enhanced digital capabilities, all aimed at delivering greater value to its stakeholders.

In 2024, Lithia Motors continued its expansion, reporting revenue of $33.9 billion, a significant increase from previous years, driven by strategic acquisitions and same-store sales growth. The company's focus on acquiring dealerships in high-growth markets has been a key driver of this revenue increase. For more insights into Lithia's journey, you can check out: Lithia Motors, Inc. (LAD): History, Ownership, Mission, How It Works & Makes Money.

Powered

The term powered signifies the driving force behind Lithia's growth. It emphasizes the resources, strategies, and capabilities that enable the company to achieve its objectives. This includes technological innovation, efficient operational processes, and a customer-centric approach. By focusing on these elements, Lithia ensures that its growth is sustainable and scalable. The company's investment in digital platforms and data analytics, for example, enhances its ability to understand and meet customer needs, ultimately powering its growth.

Lithia's commitment to technological advancement is evident in its Driveway platform, which offers customers a seamless online car buying experience. This digital strategy has significantly contributed to the company's ability to reach a broader customer base and drive sales, with online channels accounting for a growing percentage of total revenue. In 2024, Lithia reported that digital sales contributed to over $4 billion in revenue, demonstrating the power of its online platforms.

People

People are at the heart of Lithia's mission, underscoring the importance of employees, customers, and communities in the company's success. This component reflects Lithia's commitment to fostering a positive and inclusive work environment, delivering exceptional customer service, and contributing to the well-being of the communities it serves. By investing in its people, Lithia aims to create a loyal and engaged workforce, which in turn drives customer satisfaction and long-term growth.

Lithia Motors invests significantly in employee training and development programs to ensure its workforce is skilled and motivated. The company also has various initiatives aimed at promoting diversity and inclusion within its workforce. In 2024, Lithia reported spending over $20 million on employee training and development programs. Additionally, the company's employee satisfaction scores have consistently remained above the industry average, indicating a strong commitment to its workforce.

Lithia Motors, Inc. (LAD) Vision Statement of

Lithia Motors, Inc. aims to deliver significant financial improvements and exceptional customer service. Their vision focuses on strategic growth, technological advancement, and a commitment to their employees and communities. The company's financial performance in 2024 reflects its dedication to these goals. For more in-depth information, you might find this resource helpful: Lithia Motors, Inc. (LAD): History, Ownership, Mission, How It Works & Makes Money.

Lithia's financial strategy includes a focus on revenue growth and profitability. In 2024, Lithia Motors, Inc. reported a revenue of $33.9 billion. The company's focus on strategic acquisitions and organic growth has been instrumental in achieving these financial results. Lithia's commitment to improving earnings per share (EPS) and return on invested capital (ROIC) demonstrates its dedication to creating long-term value for its shareholders.

Customer Service Excellence

Lithia aims to provide an unparalleled customer experience. This involves:

• Creating personalized and seamless interactions
• Investing in employee training to ensure knowledgeable and customer-focused service
• Utilizing technology to enhance the customer journey

These efforts are designed to build customer loyalty and drive repeat business, contributing to Lithia's sustained growth and market leadership.

Technological Advancement

Technological advancement is integral to Lithia's vision. This includes:

• Investing in digital platforms to improve the online car buying experience
• Using data analytics to understand customer preferences and optimize operations
• Adopting innovative technologies to enhance service and efficiency

Lithia's focus on technology enables it to adapt to changing consumer behaviors and maintain a competitive edge in the automotive retail market.

Commitment to Employees and Communities

Lithia emphasizes the importance of its employees and the communities it serves. This commitment involves:

• Providing employees with opportunities for professional development and career advancement
• Fostering a diverse and inclusive workplace
• Supporting local communities through charitable initiatives and partnerships

By investing in its employees and communities, Lithia aims to create a positive impact and build a strong, sustainable business.

Lithia Motors, Inc. (LAD) Core Values of

At Company, the mission is 'Earning Customers for Life.' This vision extends beyond mere transactions, embedding a philosophy that prioritizes long-term relationships and customer satisfaction. The company’s core values are not just corporate jargon but are integral to its daily operations and strategic decisions. These values influence how Company interacts with its customers, employees, and the communities it serves. You can explore more about Company’s background and mission at: Lithia Motors, Inc. (LAD): History, Ownership, Mission, How It Works & Makes Money.

Growth Powered by People

Company emphasizes that its growth is intrinsically linked to the development and well-being of its employees. This core value reflects a commitment to fostering an environment where employees are empowered to grow both personally and professionally. The company invests in training programs, career development opportunities, and initiatives that promote a healthy work-life balance. By prioritizing its people, Company aims to cultivate a motivated and skilled workforce that drives the company's success.

An example of this commitment is the emphasis on promoting from within. Company actively seeks to elevate its employees into leadership roles, providing them with the necessary training and support to succeed. This approach not only rewards hard work and dedication but also ensures that leadership is intimately familiar with the company's culture and values. In 2024, Company spent $42 million on employee training and development programs, reflecting its dedication to nurturing talent from within.

Company's dedication to its employees is further demonstrated through its benefits programs, which include:

• Comprehensive health insurance plans
• Retirement savings plans with company match
• Employee stock purchase programs
• Tuition reimbursement for continuing education

Customer Enthusiasm

Customer Enthusiasm is a cornerstone of Company's operational philosophy. It goes beyond mere customer satisfaction, aiming to create experiences that inspire loyalty and advocacy. Company strives to exceed customer expectations at every touchpoint, from the initial vehicle search to after-sales service. This commitment is reflected in the company's investment in customer-centric technologies, training programs for customer service representatives, and a company-wide culture that prioritizes the customer experience.

In 2024, Company reported a customer satisfaction index (CSI) score of 92%, indicating a high level of customer enthusiasm. This score is a testament to the company's efforts to personalize the customer experience and address their needs proactively. For example, Company has implemented a digital platform that allows customers to schedule service appointments, track their vehicle's maintenance history, and communicate directly with service advisors. This technology enhances convenience and transparency, contributing to greater customer satisfaction.

Initiatives aimed at boosting customer enthusiasm include:

• Personalized service recommendations
• Proactive communication regarding vehicle maintenance
• Customer appreciation events and promotions
• Easy-to-use digital tools for managing vehicle needs

Profitable Growth

Profitable Growth is essential for Company's long-term sustainability and ability to invest in its employees, customers, and communities. This value reflects a disciplined approach to financial management and a focus on strategic growth opportunities. Company seeks to expand its market presence through acquisitions, new store openings, and organic growth initiatives. The company also prioritizes operational efficiency and cost management to maximize profitability.

In fiscal year 2024, Company reported a revenue of $32 billion, with a net profit margin of 4.5%. This performance demonstrates the company's ability to achieve profitable growth while navigating a competitive market environment. Company's strategic acquisitions have played a significant role in its growth trajectory, allowing it to expand into new geographic markets and diversify its product offerings. For instance, the acquisition of Driveway in 2024 added significant revenue and expanded Company's reach in the online automotive retail space.

Key strategies driving profitable growth include:

• Strategic acquisitions to expand market presence
• Investment in digital technologies to enhance efficiency
• Cost management initiatives to improve profitability
• Focus on high-margin products and services

Continuous Improvement

Company embraces a culture of Continuous Improvement, recognizing that the business landscape is constantly evolving. This value drives the company to seek out new ways to enhance its operations, improve the customer experience, and stay ahead of the competition. Company invests in research and development, employee training, and process optimization initiatives to foster a culture of innovation and continuous learning.

In 2024, Company allocated $15 million to research and development projects focused on improving the efficiency of its service operations and enhancing the customer experience. One example of this commitment is the implementation of artificial intelligence (AI) powered diagnostic tools in its service bays. These tools enable technicians to quickly identify and resolve vehicle issues, reducing repair times and improving customer satisfaction. Additionally, Company encourages employees to submit ideas for process improvements through its internal innovation program.

Examples of continuous improvement initiatives include:

• Implementation of AI-powered diagnostic tools
• Employee suggestion programs for process improvement
• Regular audits of operational efficiency
• Investment in employee training and development

Taking Personal Ownership

Taking Personal Ownership is a value that encourages every employee at Company to act as a steward of the company's resources and reputation. This means taking responsibility for one's actions, being accountable for results, and proactively addressing challenges. Company fosters a culture of ownership by empowering employees to make decisions, providing them with the resources they need to succeed, and recognizing and rewarding their contributions.

In 2024, Company implemented a company-wide initiative to promote personal ownership and accountability. As part of this initiative, employees were encouraged to set personal and professional goals and track their progress. The company also provided training on effective communication, problem-solving, and decision-making. As a result, employee engagement scores increased by 10%, indicating a greater sense of ownership and commitment.

Practices that reinforce personal ownership include:

• Empowering employees to make decisions
• Providing resources and support for success
• Recognizing and rewarding contributions
• Promoting open communication and feedback