MEDFORD, Ore.--Lithia Motors Inc. will buy Alaska dealerships Tony Chevrolet of Anchorage and Tony Chevrolet of Wasilla, announced the company this week. The dealerships will be renamed Chevrolet of South Anchorage and Chevrolet of Wasilla.

The stores have a combined annualized sales of approximately $125 million. Once the transaction is complete, Lithia will have acquired about $220 million in annualized revenues this year.

Lithia entered the Alaska market in January 2001 by acquiring a Chrysler Jeep store in Anchorage, Alaska. It also opened a Dodge store that year. In 2003, it purchased a Hyundai store and a Chevrolet Cadillac store.

"Alaska has been a solid performing market for Lithia over the past three years," said Sid DeBoer, Lithia's chairman and chief executive officer. "The two new stores will contribute to our continued growth in the Alaska market."

Lithia sells 25 brands of new vehicles and runs 80 stores and 149 franchises in 12 Western states and through Lithia.com. It also sells used vehicles. The company this week also reported earnings for the first quarter of 2004. Net income rose 75 percent to $7.6 million, up from $4.3 million a year ago. New vehicle sales were up 15 percent, used vehicle sales were up 10 percent, parts and service sales rose 23 percent and F&I sales grew by 15 percent.