Lithia & Driveway’s first foray into international markets was through a Canadian acquisition and LAD president and CEO Bryan DeBoer has said the publicly listed dealer group will continue to grow in Canada.

“Canada has been our top target for growth outside of the United States with its similar business practices and a market opportunity of 5 million new and used cars sold annually,” said DeBoer in a press release announcing LAD’s acquisition of Pfaff Automotive Partners in August of 2021.

LAD continued its expansion in Canada this year with its June acquisition of Woodbridge Hyundai near Toronto.

Previously, LAD acquired Sisley Honda in Thornhill in May of 2022.

It now has 24 dealerships in 15 locations in Canada encompassing 13 brands.

Pfaff acquisition as a springboard

The Pfaff Automotive Partners buy was LAD’s first international acquisition.

It included 11 locations in the Greater Toronto area as well as Calgary and Vancouver with nameplates ranging from ultra luxury brands McLaren, Singer, and Pagani and luxury brand Porsche to volume brands such as Chevrolet, Dodge, Ford, and Nissan.

At the time, DeBoer called Pfaff Automotive Partners “an ideal hub for further expansion.”

Pfaff management retained a stake in the group and it clearly shares DeBoer’s view.

In a January 2023 interview with Canadian Auto Dealer, Pfaff Automotive Partners president and CEO Chris Pfaff said, “Growth is on our mind for sure, we are going to go out there and look for good acquisitions.”

Pfaff also said he “felt comfortable with” the Lithia culture that allows regional platforms to continue to run their businesses. “I don’t think there are many Canadian or U.S. groups that would been the best fit,” Pfaff said.

DeBoer sees the Pfaff acquisition as preparing for more than just expanding in Canada. When Lithia acquired Jardine Motors in the U.K. in March of 2023, DeBoer told Automotive News that, like the Pfaff acquisition, the Jardine acquisition fit with Lithia’s goal to focus on growing in English-speaking countries.

The U.K. and Canada are the two largest-English speaking countries after the U.S., DeBoer said.

Its Canada acquisitions help Lithia be “fairly well-equipped” to continue its expansion in other English-speaking countries, DeBoer indicated. He has expressed an interest in Australia.