Jim Cramer And Lithia Motors CEO Talk Plans, Competition

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On CNBC's "Mad Money" Wednesday evening, Jim Cramer interviewed Lithia Motors, Inc. LAD CEO Bryan Deboer about the company's competitive strategy approach against Carvana Co. CVNA.

Deboer says the company plans on competing with Carvana by first launching its Driveway.com strategy, which is an e-commerce solution. Drivway.com lets customers purchase or sell vehicles online and schedule at-home services.

See Also: Carvana, Vroom Rally On Goldman Sachs Upgrade: The Bull Case For Auto E-Commerce

There are 20,000 cars on online now and the company also has a seven-day, no questions asked return policy, according to Deboer. He expects the first quarter of the year to have an additional 20,000-30,000 vehicles online and will be able to be the first to offer a seven-day, no questions asked return policy on new cars.

Lastly, Deborn notes the company made approximately a quarter billion dollars in net profit in the third quarter from dealership acquisitions, which sets up the company well to purchase more in the future.

Posted In: After-Hours CenterMediaBryan DeboerCNBCJim Cramer
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