In an automotive retail panorama within the midst of a fast-paced period of consolidation, one group and one government are working at a unique stage: Lithia Motors Inc. and its CEO, Bryan DeBoer.

The longtime head of what’s now the nation’s second-largest dealership group has been the guiding power within the transformation of Lithia changing into a nationwide model not solely by way of acquisitions of single dealerships and enormous non-public teams throughout the nation, but in addition by way of the rollout of a fledgling omnichannel retailing software, Driveway.

DeBoer’s execution on his imaginative and prescient for Lithia is among the many causes he was chosen amongst Automotive Information‘ 2021 All-Stars because the Trade Chief of the Yr.

“It is a enjoyable journey,” DeBoer, 55, mentioned in an interview this month. “However it’s only the start.”

In July 2020, the Medford, Ore., retailer revealed an bold five-year plan to succeed in $50 billion in annual income by 2025 — almost quadruple 2019’s income of $12.67 billion — and greater than double its retailer depend to a complete of 500 U.S. dealerships.

Lithia’s objective is to ship and repair autos inside any 100-mile radius within the decrease 48 states and inside a 100-mile radius of 90 % of the inhabitants in Alaska and Hawaii by way of expansive progress and improved operational developments.The publicly traded firm has made vital progress almost a 12 months and a half for the reason that plan was launched.

Lithia’s 2020 income for the 12 months rose to $13.1 billion. By way of the third quarter of 2021, Lithia’s income stands at $16.5 billion.

As of Nov. 16, Lithia’s U.S. dealership depend stood at 266.

Previous to changing into CEO of the corporate based by his father, Sid, DeBoer had been Lithia’s COO and president, senior vice chairman of M&A/operations and common supervisor of a Honda dealership in Oregon.

Acquisitions have been a cornerstone for Lithia throughout DeBoer’s tenure as CEO, which started in 2012, and performed a job in him being named an Automotive Information All-Star in 2014, 2016 and 2019.

In 2012, Lithia’s dealership depend was 87. It hasn’t stopped increasing.

By 2017, that depend elevated to 169 dealerships. Lithia surpassed the 200 mark final 12 months, reaching 209.

Lithia ranked No. 3 on Automotive Information‘ most up-to-date listing of the highest 150 dealership teams primarily based within the U.S., retailing 171,168 new autos in 2020. However DeBoer took it up a notch in April when Lithia acquired Michigan’s Suburban Assortment and 34 of its dealerships in one of many largest-ever acquisitions for the corporate in addition to one of many largest automotive retail transactions of the previous decade. That acquisition vaulted Lithia previous Penske Automotive Group to grow to be the nation’s second-largest dealership group going ahead.

Simply greater than 4 months later, Lithia made one other vital acquisition — and went overseas for the primary time — when it purchased Canadian retailer Pfaff Automotive Companions.

“I believe the most important studying that we have realized all alongside is know what we all know and know what we do not know,” DeBoer mentioned. “And just be sure you perceive that David Fischer [of the Suburban Collection] and his workforce in Detroit know far more in regards to the Detroit market, the customers, their associates and the competitors than we are going to ever know. I believe that is much more so said with Chris Pfaff and Carol [Deacon] and their groups in Canada.”

Past these two acquisitions, Lithia this 12 months entered a handful of Southeast states — Mississippi, Alabama and Georgia — additional increasing the retailer’s attain in what it refers to as Area 6 and what DeBoer referred to as the shallowest space for the corporate.

“It does assist us be capable to develop in that Area 6. … I imagine it is probably the most profitable markets within the nation — these seven, eight states within the Southeast — and it is simply one thing that we’ve not been a celebration to during the last 20, 30 years,” he mentioned. “Now we’re getting a style of that and actually are having fun with what we’re seeing in these markets.”

Lithia mentioned it has acquired shops — together with a Harley-Davidson dealership, its first entry into bike gross sales — representing about $6.5 billion in annualized income in 2021 as of Nov. 16. Lithia added about $3.5 billion in income from its 2020 acquisitions.

With the Suburban Assortment acquisition, Lithia kick- began the parade of megadeals and helped make 2021 the most important 12 months for dealership mergers and acquisitions in a long time.

Fellow public corporations Group 1 Automotive, Sonic Automotive Inc. and Asbury Automotive Group Inc. every revealed plans in September to amass giant non-public teams.

Regardless of that breakneck tempo, DeBoer is fast to level out that the business stays fragmented.

“It is also essential to do not forget that the highest 10 largest teams have lower than 10 % of the market share of latest autos within the nation,” DeBoer mentioned. “We’re a $2 trillion business that’s fairly giant and fairly unconsolidated. We actually imagine that at Lithia and Driveway, we now have the flexibility to proceed to develop that community out to the five hundred approximate shops to essentially get to that 100-mile density that permits us to essentially service customers wherever they select, at any time when they select and nonetheless they select.”

For Lithia, that would imply additional growth within the Midwest and the South, anchored round Texas.

“Regardless that we’re in Detroit, we’re actually not into the opposite main inhabitants areas like St. Louis and Minneapolis,” DeBoer mentioned. “We’ll most likely proceed to search for companions in these areas. After which in Texas, Louisiana, Oklahoma, these areas, we now have a reasonably good presence in Texas, however are nonetheless constructing out within the areas round Texas.”

A rising dealership community is simply a part of Lithia increasing its attain to U.S. customers.

Driveway, an omnichannel platform launched in 2020, permits customers to purchase new or used autos on-line with residence deliveries. Part of Driveway’s enterprise is shopping for autos.

Omnichannel refers to expertise and processes geared toward offering a seamless shopping for expertise for customers whether or not they store on-line, in-store or each.

DeBoer mentioned Lithia did not notice Driveway would have as massive of a attain because it’s having right now.

“I believe a few of it is attributable to shortages in new and used inventories,” he mentioned. “Our common automotive is getting shipped over 930 miles. It is fairly a distinction when you’ve got a nationwide model with Lithia.”

DeBoer famous that just about 98 % of Driveway customers had not completed enterprise with Lithia or the omnichannel platform earlier than: “That capability to broaden our choices to new customers is kind of a possibility.”