Aug 29, 2007 |
L2 Auto Schedules August 29th Grand Opening |
Sid DeBoer, Lithia Chairman and CEO, to host Loveland event.
Loveland, Co., Aug 29, 2007: L2 Auto (www.L2.com), the customer-centric web-based used car offering from Lithia Motors, Inc. (NYSE:LAD) will host its grand opening Wednesday, August 29th at 12:30 PM at its first location in Loveland at 3870 Byrd Drive. Sid DeBoer, Chairman and CEO of L2 Auto's parent, Lithia Motors, will host the event. L2 facility and process tours are offered beginning at 10:00 AM and also immediately following the ribbon cutting ceremony.
"For Lithia, L2 Auto represents both the culmination of our past experience and a catapult to the future," said Sid DeBoer. "It's a culmination of everything we've learned through our 60 years of experience in the retail automotive business. We took our experience and combined it with our market research to get here. L2 catapults us into the future with a process driven used car sales system that addresses customer concerns one by one, and answers all the issues that used car buyers have told us are most important to them."
Sid DeBoer is highly regarded as a leader and visionary in the auto retail industry. Lithia Motors went public in 1996 and has since built a network of 108 stores in 15 states with annual revenue of $3.2 billion in 2006.
Grand opening attendees will hear from Mr. DeBoer on the L2 Auto process, business model and growth plans. The Loveland store is the first location to open this year, with two more stores slated for opening by the end of the year in Texas. Each of the stores sits on 6 to 9 acres of land, and the total investment in land and buildings is between $6 and $8 million dollars, of which 75-80% will be financed by various financial institutions. Each of the first three L2 stores will be between 28,000 and 30,000 square feet, and will carry approximately 250 fully reconditioned used cars and trucks. Lithia anticipates that each of the L2 stores will employ between 50 and 60 people.
Some of the vehicles in the L2 inventory will look familiar to the residents of Loveland. That's because L2 Auto will buy any vehicle from anyone in the community at fair market value prices and with no strings attached. By keeping its focus on the customer, L2 will be a draw for those looking to sell their vehicle quickly and easily.
L2 Auto uses an internet-based process that leads the industry in technology to vastly improve all customer experiences. In addition, all L2 vehicles complete a rigorous 240-point inspection and come with both a 60 day "if it breaks we fix it" warranty, as well as a three day, no-questions-asked return program that includes a hassle-free return of any trade in and down payment a customer may have had. "Customer peace-of-mind and transaction transparency are L2's mantras," said Marty Mindling, L2's Vice President of Operations. "The process is simple, but is also absolutely state-of-the-art. There are no hidden charges, no surprises. L2's process is based on educating customers and helping them make intelligent decisions to fulfill their individual transportation needs. That's what we are all about."
Even before L2 Auto opened its doors in Loveland, the company was already making a contribution to the community. L2 teamed up with Project Self-Sufficiency to provide much needed vehicle service to low income families in the area. The program, which began in early May, has provided complimentary automotive service on more than a dozen cars to help area families meet their critical transportation needs. The work has ranged from oil changes and tune ups to more significant transmission and engine work. All work has been completed free of charge
In addition to Sid DeBoer, many Lithia and L2 Auto senior executives will be on hand for the grand opening. To learn more about L2, visit www.L2.com.
About L2:
L2, a Lithia company, is an innovative, right-for-the-times, web-based concept that will provide a new and improved experience for consumers in the used car market. L2 represents an entirely new process of online shopping and buying to provide a whole new level of catering to the used car customer. It offers unprecedented transparency in every transaction including availability of a broad selection of popular late model used vehicles, clearly marked "negotiation-free" prices based on current market values, a 240 point inspection plan, a 60 day "if it breaks, we fix it" warranty, and a three day "no questions asked" return policy.
About Lithia Motors, Inc.:
Lithia Motors, Inc. is a Fortune 700 and Russell 2000 Company. Lithia sells 30 brands of new vehicles at 108 stores which are located in 46 markets within 15 states. Internet sales are centralized at www.Lithia.com. Lithia also sells used vehicles; arranges finance, warranty, and credit insurance contracts; and provides vehicle parts, maintenance, and repair services at all of its locations. Lithia retailed 109,648 new and used vehicles and had $3.17 billion in total revenue in 2006.
This press release includes forward looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to certain risk factors including, without limitation, economic conditions, acquisition risk factors and others set forth from time to time in the company's filings with the SEC. Specific risks in this press release include future locations and the timing of opening, total investment, inventory levels, store acreage, square footage, ability to finance, and the customer experience.
For more information, contact:
Don Schrader
Assistant Vice-President of Marketing
(541) 261-3917
Jeff DeBoer
Senior Vice-President, Chief Financial Officer, Lithia Motors, Inc.
(541) 776-6868
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