Lithia Motors Deploys AI to Boost Service Sales
The company is expanding its use of virtual agents to automate service bookings and upsell vehicle maintenance.
Updated on Oct. 28, 2026 in Buying/Selling
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Lithia Motors is leveraging agentic AI technology to increase pre-sales on service appointments at its United Kingdom dealerships. The software consistently prompts customers to add services during the booking process, resulting in higher service appointment revenue.
Why it matters
The company implemented this technology because dealership staff frequently neglect to pitch additional services during high-volume periods. By automating these interactions, the firm seeks to improve overall profitability and reduce operational expenses.
Lithia Motors currently operates 143 dealerships in the United Kingdom, 308 in the United States, and 15 in Canada. The company aims to reduce selling, general and administrative expenses below 60% of gross profit by 2028.
The players
Lithia Motors
Lithia Motors is an automotive retailer headquartered in Medford, Oregon, that operates a large network of dealerships.
Bryan DeBoer
Bryan DeBoer serves as the Chief Executive Officer of Lithia Motors and provides guidance on the company's long-term operational strategy.
Pinewood.AI
Pinewood.AI is a dealership management system technology designed to automate administrative tasks and customer interactions.
The details
The Pinewood.AI system utilizes virtual agents to manage customer service calls and integrate product pitches directly into the booking flow. These automated prompts encourage customers to authorize essential maintenance like fluid changes and tire checks during their appointment scheduling.
Timeline
AI implementation began in the United Kingdom during the first quarter of 2026.
Lithia Motors reported a slight revenue and profit decline during the third quarter of 2026.
CEO Bryan DeBoer detailed the benefits of the AI integration on October 21, 2026.
The full rollout of Pinewood.AI across all international operations is scheduled for 2028.
Roadmap
This integration reflects a broader shift toward digitizing the retail automotive experience to offset rising operational costs. By embedding AI into the core management system, Lithia Motors positions itself to maintain margins despite recent revenue declines.
Customers booking service appointments may now interact with virtual agents who automatically suggest routine maintenance options during the scheduling process. These automated pitches aim to streamline the booking experience while potentially increasing the total cost of individual service visits.
The takeaway
Automated dealership systems are increasingly being used to ensure consistent service upselling regardless of human staff bandwidth. Consumers should be aware that AI-driven booking processes are designed to identify and prompt for additional maintenance needs.
What happens next
The company is planning to complete the full deployment of the Pinewood.AI management system across all its international operations by the end of 2028.
Further reading
For more information on the evolving retail market, visit Buying/Selling.
Source note: This article includes information reported by Ward's Communications Online.
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