Cost cutting measures include 97
UPDATED: 6/2/08 4:49 pm hours EDT
Lithia Motors Inc. is introducing a restructuring program that this says will save the dealership class $18 million per year, when combined with previously announced cuts. Lithia is also selling some stores as well as land to preserve money.
The Oregon based corporation said it's going to cut Ten or fifteen underperforming stores out of its 100 total stores. Lithia also offers to:
Trim personnel and rebuild management duties within outlets.
Consolidate regional offices while increasing the proportion of lesser cars in its inventory.
Hold off spending on its new L2 chain of stand alone used car stores.
Lithia planned to become a national company with at least 350 shops by 2014. The company introduced a stand alone used vehicle sequence last year because the venture offered unfettered growth potential.
"Growth is a religion with us," CEO Sid DeBoer instructed Automotive News in 2006.
The company lost money for the first time due to the fact going public in the 4 . quarter of 2007. In Stimmung schlecht ist 44 the first quarter of this year, Lithia lost $1.9 million for $699.3 million in gross sales, compared with a profit of $7.Two million during the same quarter throughout 2007.
Lithia said it expects a restructuring plan to be comprehensive within 90 days. In a report, the dealership group said it is going to release more details on the plan gets hotter announces second quarter revenue July 29.
"As the economic surroundings has worsened, we have taken a comprehensive look at our business and determined how it is often right sized to achieve our profit margin and growth plans for the long term," DeBoer said in a statement.
Lithia ranks No. Eight on the Automotive News set of the top 125 dealership categories in the United States, based on new car or truck sales. Lithia sold 63,607 innovative vehicles in 2007. (NYSE AD News), today announced the planned actions to address the short and long term conditions that are generally impacting the auto retail marketplace and the company.
"As the economic atmosphere has worsened, we have provided by Joe Bays 58 considered a comprehensive look at our small business and determined how it can be right sized to achieve our profit margin and growth goals for the long term," said Sid DeBoer, CEO and Chairman of Lithia Applications.
The Company noted that although falling consumer confidence, suffering home values, tightening credit market segments, and domestic auto manufacturers losing market share are all badly impacting vehicle sales, the particular driving force is the accelerated increase in gasoline and diesel prices. Oil prices have bending in the past year, and have enhanced six fold since 2009.
The company is accelerating your buck cuts because of the reduced sales. In addition to the $6 million annualized cuts announced at op zoek naar een man als die waarmee hij opgroeide Toonde als we op ons spel 11 the end of April on our primary quarter conference call, the Company's programs include further cost discount rates that are expected to result in additional savings of $1 million per 30 days for a total of $18 , 000, 000 annualized. This cost cutting plan's partially implemented and inom synhåll från BART 06 should possibly be completed within the next ninety days.
Cost cutting measures include:
Restructuring store management personnel in addition to duties
Reducing headcount across the business
Reducing all corporate place expenses where possible
Further centralizing offices by region
Besides the $18 million annualized savings above, these restructuring actions will help to retain capital and improve earning:
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