World's Largest Automotive Retailer
Acquires Toyota of Gallatin and Mercedes-Benz of Medford, Adding USD 225
Million in Annualised Revenue and Entering the High-Growth Nashville Market.
United
States: Lithia & Driveway, recognised as the
world's largest automotive retailer, announced on March 3, 2026 the acquisition
of two dealerships: Toyota of Gallatin in Gallatin, Tennessee, and
Mercedes-Benz of Medford in Medford, Oregon. The dual acquisition brings the
company's year-to-date annualised U.S. revenue acquired to USD 225 million,
with both transactions financed using existing on-balance sheet capacity.
The
acquisition of Toyota of Gallatin previously owned by Dave Stumbo of Stumbo
Automotive marks a strategically significant entry for Lithia & Driveway
into the fast-growing Nashville metropolitan market, one of the most
economically dynamic and high-velocity automotive retail regions in the United
States. Nashville's expanding population, rising household income levels, and
strong new-vehicle demand have made it an increasingly competitive target
market for major dealer groups. The Toyota franchise, a volume leader in the
core brand segment, is particularly well positioned to benefit from this growth
tailwind.
Simultaneously,
the acquisition of Mercedes-Benz of Medford carries added resonance for the
company, as it is headquartered in Medford, Oregon making the addition of a
premium luxury franchise in its hometown a milestone as the company marks its
80th year in business in 2026. The addition of a Mercedes-Benz point bolsters
Lithia & Driveway's luxury brand portfolio, contributing to the diversification
of its revenue mix across price segments and geographies. Both stores are
expected to be integrated into the company's broader omnichannel retailing
infrastructure, including its Driveway online platform and Driveway Finance
Corporation captive lending arm.
According
to Bryan DeBoer, President and CEO of Lithia & Driveway, “We
are proud to welcome Toyota of Gallatin and Mercedes-Benz of Medford to the
Lithia & Driveway family. Toyota of Gallatin marks our entry into the
fast-growing Nashville market, and welcoming a premier luxury store in Medford
where our company was founded makes this addition especially meaningful as we
mark our 80th year serving customers. These acquisitions reflect our continued
commitment to growing in our hometown and in high-performing markets."
According
to TechSci Research, the U.S. automotive
retail market is in the midst of a sustained consolidation cycle, with large,
well-capitalised dealer groups continuing to absorb independent franchises at
an accelerated pace driven by scale advantages in technology investment,
captive financing, and omnichannel customer acquisition. TechSci Research's
analysis of the North American automotive dealership sector indicates that
groups operating 200 or more rooftops benefit from procurement efficiencies and
digital platform leverage that compress SG&A costs by up to 18% relative to
standalone dealerships. The firm identifies the Nashville-Middle Tennessee
corridor as one of the top five highest-potential automotive retail markets in
the United States through 2030, supported by population in-migration trends, a
robust local economy anchored by healthcare and technology sectors, and
sustained consumer demand for both volume and luxury-brand vehicles. Lithia
& Driveway's dual-brand acquisition strategy spanning core volume and
premium segments is consistent with TechSci Research's recommendation for
balanced portfolio construction in a market environment characterised by
increasing interest rate sensitivity and shifting consumer financing
preferences.