Lithia Motors Inc. recently announced its acquisition of the Troy-based Suburban Collection dealerships, marking a significant expansion within one of the largest auto retail networks in the U.S. This acquisition, closed on Monday, is noted as one of the largest franchise transactions in the auto retail sector, occurring amidst a surge in merger-and-acquisition activities within the industry.

The specific financial details of the sale have not been disclosed.The Suburban Collection, now under Lithia's umbrella, will maintain its brand identity but benefit from Lithia's extensive Midwest presence, enhancing customer access to a wider range of services, parts, and vehicle options. In the coming months, Suburban customers will also gain access to Lithia's Driveway e-commerce platform, enabling online vehicle purchases and sales, alongside a convenient service appointment feature that includes vehicle pickup and drop-off.This strategic move is part of a broader industry trend towards digital retail experiences, accelerated by the COVID-19 pandemic and the shift towards electrified vehicles.

It reflects the ongoing transitions within the automotive sales sector, where larger entities are increasingly absorbing family-owned businesses to scale up and integrate new technologies for improved customer convenience and expanded inventory.David T. Fischer, chairman of Suburban Collection Holdings, highlighted the partnership's potential to enhance customer service and provide new growth and advancement opportunities for team members. Meanwhile, Lithia Motors continues its aggressive expansion strategy, aiming for significant revenue and earnings growth by 2025.

The Suburban Collection is set to contribute substantially to Lithia's revenues, with its extensive network of locations and brands across the northern central United States.David Fischer Jr., the CEO of the Suburban Collection, will continue leading the team as group vice president under Lithia, promising enhanced technological, selection, and financing options for customers. This acquisition not only signifies a major step for Lithia's expansion but also celebrates the long-standing community and customer service legacy established by the Fischer family in southeast Michigan since 1948.

The merging of Lithia Motors and the Suburban Collection represents a fusion of two companies with deep roots dating back to the 1940s, each with a history of commitment to excellent customer service and community engagement. This acquisition is a testament to the evolving landscape of the automotive retail industry, emphasizing the importance of adaptability, technology integration, and customer-focused strategies in sustaining growth and market presence.