The 10-Second Version (AI Summary)
Generated by AI and reviewed by our team.
What happened: Lithia’s U.K. stores report 10% to 11% additional service pre-sales from AI agents that book appointments and offer add-ons.
Why it matters: Lithia wants the tool in U.S. stores before its full Pinewood rollout wraps up in 2028.
What to do: Find every spot in your service lane that depends on someone remembering to ask.
One of our writers asks the same question at every service visit.
One of our writers asks the same question at every service visit: “Do I have enough coolant?” Sometimes it’s “Did anyone top off the washer fluid?” The usual answer is a blank stare, which leaves him wondering what a 55-point inspection actually covers. Every corner of every tire, apparently.
Lithia CEO Bryan DeBoer described the store’s side of that same gap on his Oct. 21 earnings call, and we dug into it on today’s Automotive State of the Union.
“We get busy in our business, and our people get busy.” Bryan DeBoer, Lithia CEO
What has AI changed in Lithia’s U.K. service departments?
What’s the tool?
For six to nine months, Lithia’s U.K. stores have run a Pinewood.AI dealer management system with an AI agent that talks to customers directly to book service.
What does it do that people miss?
It asks about extras every time an appointment is booked, including wiper blades, fluid changes, and tires.
What’s the result?
DeBoer said Lithia is “getting around 10% to 11% additional pre-sales on every AI,” and guessed the number was “close to zero” before. Keep two caveats in mind: the baseline is his estimate, and the figure measures add-on pre-sales, not total service revenue.
When does it reach the U.S.?
Lithia plans to finish rolling out Pinewood across its 308 U.S., 143 U.K., and 15 Canadian stores by 2028. It’s looking for ways to bring the AI piece to America sooner.
Why the urgency?
Lithia wants SG&A below 60% of gross profit by 2028. In Q3 it rose to 68.8%, up from 67.9% a year ago, while gross profit rose 2% to $1.5 billion and adjusted net income fell 5% to $229.3 million.
Does an AI agent close the inspection gap customers feel?
It closes part of it. The AI makes the ask consistent at booking. The customer at the counter asking about coolant still needs a technician who checked, and an advisor who can say so.
We’re impressed that a company of Lithia’s size is building this vertically instead of waiting for the industry to catch up. Size doesn’t explain it, either. Plenty of large groups aren’t doing this.
“[T]here are big companies that aren’t doing what they’re doing because they don’t have vision for it, and Lithia does.”
AI now lets a store of any size go as far into its own operations as its vision allows. If that vision doesn’t exist inside your building yet, bring in the person who has it.
Hear the full conversation on Episode #1487 of the Automotive State of the Union.
