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<FONT face="serif">Filed with the Securities and Exchange Commission on</FONT></P>
<P align="right">
<FONT face="serif"> Securities Act Registration No. 333-</FONT></P>
<P align="center">
<FONT size=2 face="serif">UNITED STATES </FONT><BR>
<FONT size=2 face="serif">SECURITIES AND EXCHANGE COMMISSION</FONT><BR>
<FONT size=2 face="serif">WASHINGTON, D.C. 20549 </FONT>
<p>
</P>
<P align="center">
<FONT face="serif">FORM S-8 </FONT></P>
<P align="center">
<FONT face="serif">REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</FONT></P>
<P align="center">
<B><FONT face="serif">LITHIA MOTORS, INC.</FONT></B><FONT face="serif"> <br>
</FONT><FONT size=2 face="serif"> (Exact name of registrant as specified in its charter)</FONT><FONT face="serif"> </FONT></P>
<TABLE border=0 cellspacing=1 cellpadding=0 width="671">
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	<TD width="42%" nowrap align=left>
<B><FONT face="serif">Oregon</FONT></B>&nbsp;
	</TD>
	<TD width="5%">
&nbsp;	</TD>
	<TD width="42%" nowrap align=right>
<B><FONT face="serif">93-0572810</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width="42%" nowrap align=left>
<FONT size=2 face="serif">(State of incorporation)</FONT>&nbsp;
	</TD>
	<TD width="5%">
&nbsp;	</TD>
	<TD width="42%" nowrap align=center>
<p align="right">
<FONT size=2 face="serif">(I.R.S. Employer Identification No.)</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
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	<TD width="42%" nowrap align=left>
<B><FONT face="serif">360 E. Jackson St., Medford, Oregon</FONT></B>&nbsp;
	</TD>
	<TD width="5%">
&nbsp;	</TD>
	<TD width="42%" nowrap align=right>
<B><FONT face="serif">97501</FONT></B>&nbsp;
	</TD>
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	<TD width="42%" nowrap align=left>
<FONT size=2 face="serif">(Address of principal executive offices)</FONT>&nbsp;
	</TD>
	<TD width="5%">
&nbsp;	</TD>
	<TD width="42%" nowrap align=right>
<FONT size=2 face="serif">(Zip Code)</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>
<P align="center">
<B><FONT face="serif">LITHIA MOTORS, INC. 1998 EMPLOYEE STOCK PURCHASE PLAN</FONT></B></P>
<P align="center">
<FONT size=2 face="serif"> (Full title of the plan)</FONT><FONT face="serif"> </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sidney B. DeBoer, Chief Executive Officer</FONT></B><BR>
<B><FONT size=2 face="serif">360 E. Jackson St. </FONT></B><BR>
<B><FONT size=2 face="serif">Medford, Oregon 97501 </FONT></B><BR>
<B><FONT size=2 face="serif">(541) 776-6899</FONT></B><BR>
<FONT size=2 face="serif"> (Name, address and telephone number </FONT><BR>
<FONT size=2 face="serif">of agent for service) <br>
</FONT><BR>
<FONT size=2 face="serif">Copies to: </FONT><BR>
<FONT size=2 face="serif">Kenneth E. Roberts, Esq. </FONT><BR>
<FONT size=2 face="serif">Foster Pepper LLP </FONT><BR>
<FONT size=2 face="serif">601 SW 2</FONT><SUP><FONT size=2 face="serif">nd</FONT></SUP><FONT size=2 face="serif"> Avenue, Suite 1800 </FONT><BR>
<FONT size=2 face="serif">Portland, Oregon 97204 </FONT><BR>
<p>
</P>
<P>
<FONT size=2 face="serif"> Indicate by check mark whether the registrant is a large accelerated filer, and accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large accelerated filer,&#148;
&#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act. (Check One)
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Large accelerated filer</FONT>&nbsp;<FONT size=2 face="serif">[&nbsp;&nbsp;&nbsp;
]</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2 face="serif">Accelerated filer</FONT>&nbsp;
	<FONT size=2 face="serif">[X ]</FONT>&nbsp;
	<br>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-accelerated filer
[&nbsp;&nbsp;&nbsp; ]</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<FONT size=2 face="serif">Smaller reporting company&nbsp;&nbsp; [&nbsp;&nbsp;&nbsp;
]</FONT>&nbsp;<br>
&nbsp;&nbsp;<FONT size=2 face="serif">(Do not check if a smaller reporting company)</FONT>&nbsp;
	</P>
<P>
&nbsp;</P>
<TABLE border=0 cellspacing=1 cellpadding=0>
<TR>
	<TD colspan=11>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100% colspan=11>
<FONT size=2 face="serif">CALCULATION OF REGISTRATION FEE</FONT>
	</TD>
</TR>
<TR>
	<TD colspan=11 width=100%>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=24% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
<FONT size=2 face="serif">Proposed</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=18% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Proposed</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=11% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=24% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
<FONT size=2 face="serif">Maximum</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=18% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Maximum</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=11% nowrap align=right>
<FONT size=2 face="serif">Amount of</FONT>&nbsp;
	</TD>
</TR>
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	<TD width=24% nowrap align=left>
<FONT size=2 face="serif">Title of Securities to</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
<FONT size=2 face="serif">Amount to be</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
<FONT size=2 face="serif">Offering Price</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=18% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Aggregate</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=11% nowrap align=right>
<FONT size=2 face="serif">Registration</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=24% nowrap align=left>
<FONT size=2 face="serif">be Registered</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
<FONT size=2 face="serif">Registered (1)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
<FONT size=2 face="serif">Per Unit (2)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=18% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Offering Price (2)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=11% nowrap align=right>
<FONT size=2 face="serif">Fee</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=11>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=24% nowrap align=left>
<FONT size=2 face="serif">Class A Common Stock</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
<FONT size=2 face="serif">1,000,000</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=center>
<FONT size=2 face="serif">&#36;3.52</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=18% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">&#36;3,520,000.00</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=11% nowrap align=right>
<FONT size=2 face="serif">&#36;138.34</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan="11">
<HR noshade size=1>
	</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT size=2 face="serif">(1)</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT size=2 face="serif">The shares of Common Stock represent the number of shares which may be issued pursuant to the 1998 Employee Stock Purchase Plan. In addition, pursuant to Rule 416, this Registration Statement also covers an indeterminate
number of additional shares which may be issuable as a result of the anti-dilution provisions of Plan.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=2 face="serif">(2)</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT size=2 face="serif">The maximum offering price for the shares cannot presently be determined as the offering price is established at the time shares are issued. Pursuant to Rule 457(h), the offering price is estimated based on the last sale
price reported for the Common Stock on NYSE on December 22, 2008 and the maximum offering price is calculated for the sole purpose of determining the Registration Fee.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>

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<TABLE><TR><TD nowrap>
<FONT face="serif">PART II</FONT><BR>
</TD></TR></TABLE>
</P>
<P align="center">
<FONT face="serif">INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the Annual Meeting of Shareholders of Lithia Motors, Inc., (the &#148;Company&#148;) held on May 21, 2008, the shareholders of the Company approved an amendment to the Company&#146;s 1998 Employee Stock Purchase Plan
(&#147;Plan&#148;) increasing the number of shares of Common Stock authorized for issuance pursuant to the Plan from the previously registered amount of 2,450,000 shares to 3,450,000 shares.</FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The purpose of this Registration Statement on Form S-8 is to register the additional 1,000,000 shares of Common Stock issuable under the Plan. </FONT></P>
<P>
<B><FONT face="serif">Item 3. Incorporation of Documents by Reference.</FONT></B><FONT face="serif"> </FONT></P>
<P>
<FONT face="serif"> The following documents filed by Lithia Motors, Inc. (the &#147;Company&#148;) with the Securities and Exchange Commission are incorporated by reference in this registration statement: </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.&nbsp;&nbsp;&nbsp;&nbsp; The Company&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 filed April 11, 2008 (SEC File No. 001-14733).</FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.&nbsp;&nbsp;&nbsp;&nbsp; The Company&#146;s Quarterly Report on Form 10-Q for the periods ending March 31, 2008, filed May 12, 2008; June 30, 2008, filed August 18, 2008; and September 30, 2008, filed November 7, 2008 (SEC File NO. 001-14733).
</FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.&nbsp;&nbsp;&nbsp;&nbsp; The Company&#146;s Form 8-K&#146;s filed, April 1, 2008, April 9, 2008, April 11, 2008, April 14, 2008, April 29, 2008, June 3, 2008, June 4, 2008, June 5, 2008, July 1, 2008, July 14 2008, July 28, 2008, August 7, 2008,
August 8, 2008, August 12, 2008, August 13, 2008, August 19, 2008, August 25, 2008, October 10, 2008, October 21, 2008, October 28, 2008 and November 6, 2008. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All other reports filed by the Company pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), since the end of the fiscal year covered by the 2007 Annual Report; and all
documents subsequently filed pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters all securities then
remaining unsold, shall be deemed to be incorporated by reference into this Registration Statement and to be a part hereof from the date of filing of such documents. </FONT></P>
<P>
<FONT face="serif">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  For purposes of this Registration Statement, any statement contained in a document incorporated or deemed to be incorporated herein by reference shall be deemed to be modified or superseded to the extent that a statement
contained herein or in any other subsequently filed document that also is or is deemed to be incorporated herein by reference modifies or supersedes such statement in such document. Any statement so modified or superseded shall not be deemed, except
as so modified or superseded, to constitute a part of this Registration Statement.</FONT></P>
<P align="center">
<FONT size=2 face="serif">ii</FONT><B><FONT size=2 face="serif">}</FONT></B></P>

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<p>
<B><FONT face="serif">Item 8.&nbsp; Exhibits.</FONT></B></p>
<p>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; See Exhibit Index</FONT></p>
<p>
<B><FONT face="serif">Item 9.&nbsp; Undertakings.</FONT></B></p>
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<TABLE><TR><TD width=36>&nbsp;</TD><TD nowrap>
<FONT face="serif">The undersigned registrant hereby undertakes:</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: </FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	</TD>
	<TD nowrap valign=top>
<FONT face="serif">(1)</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">(2)</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement;</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">(3)</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT face="serif">Provided however, that paragraphs 1 and 2 do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by the registrant pursuant to Section 13 or
Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B)&nbsp;&nbsp;&nbsp;&nbsp; That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C)&nbsp;&nbsp;&nbsp;&nbsp; To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (D)&nbsp;&nbsp;&nbsp;&nbsp; That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant&#146;s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that is
incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (E)&nbsp;&nbsp;&nbsp;&nbsp; Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant, pursuant to the provisions described in Item 6, or
otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as</FONT></P>
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<FONT size=2 face="serif">iii</FONT><B><FONT size=2 face="serif">}</FONT></B></P>

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<FONT face="serif">expressed in the Act and is, therefore, unenforceable.  In the event that the claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the
final adjudication of such issue. The foregoing undertaking shall not apply to indemnification which is covered by insurance. </FONT></P>
<P align="center">
<FONT size=2 face="serif">iv</FONT><B><FONT size=2 face="serif">}</FONT></B></P>

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<TABLE><TR><TD nowrap>
<U><FONT face="serif">SIGNATURES</FONT></U><BR>
</TD></TR></TABLE>
</P>
<P>
<FONT face="serif"> Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Medford, State of Oregon, on the 22</FONT><SUP><FONT face="serif">nd</FONT></SUP><FONT face="serif"> day of December, 2008. </FONT></P>
<P align="center">
<TABLE border=0 cellspacing=1 cellpadding=0 width="642" id="table1">
<TR valign="bottom">
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=38% nowrap align=left>
<FONT face="serif">LITHIA MOTORS, INC.</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=38% nowrap align=left>
<FONT face="serif">(Registrant)</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=8% nowrap align=left>
&nbsp;</TD>
	<TD width=2%>
&nbsp;</TD>
	<TD width=33% nowrap align=left>
&nbsp;</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
<FONT face="serif">By:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=38% nowrap align=left>
<U><FONT face="serif">/s/ Jeffrey B. DeBoer</FONT>&nbsp;
	</U>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=38% nowrap align=left>
&nbsp;&nbsp;&nbsp; <FONT face="serif">&nbsp;Jeffrey B. DeBoer</FONT>&nbsp;
	</TD>
</TR>
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	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=33% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=13% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=38% nowrap align=left>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
</P>
<BR>
<P align="center">
<TABLE><TR><TD nowrap>
<B><U><FONT face="serif">POWER OF ATTORNEY</FONT></U></B><BR>
</TD></TR></TABLE>
</P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each person whose individual signature appears below hereby authorizes and appoints SIDNEY B. DEBOER and JEFFREY B. DEBOER, and each of them, with full power of substitution to act as his true and lawful attorney in fact and
agent to act in his name, place and stead, and to execute in the name and on behalf of each person, individually and in each capacity stated below, and to file any and all amendments to this registration, including any and all post-effective
amendments or new registration pursuant to Rule 462. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the date indicated. </FONT></P>
<TABLE border=0 cellspacing=1 cellpadding=0 id="table2">
<TR valign="bottom">
	<TD width=69% nowrap align=left>
<FONT face="serif">By:</FONT> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width="27%" nowrap align=left colspan="5">
<FONT face="serif">Date: December</FONT>&nbsp;
<FONT face="serif">22,</FONT>&nbsp;<FONT face="serif">2008</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
 &nbsp;<FONT face="serif">Sidney B. DeBoer, Chief Executive Officer and</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
<FONT face="serif">Chairman of the Board of Directors</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
&nbsp;
	</TD>
</TR>
<tr>
	<TD width=69% nowrap align=left>
<FONT face="serif">By:</FONT> <u>&nbsp;/s/ Bryan B. DeBoer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width="27%" nowrap align=left colspan="5">
<FONT face="serif">Date: December</FONT>&nbsp;
<FONT face="serif">22,</FONT>&nbsp;<FONT face="serif">2008</FONT></TD>
	</tr>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
<FONT face="serif">Bryan B. DeBoer, President, Director</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
&nbsp;
	</TD>
</TR>
<tr>
	<TD width=69% nowrap align=left>
<FONT face="serif">By:</FONT> <u>&nbsp;/s/ Thomas Becker&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width="27%" nowrap align=left colspan="5">
<FONT face="serif">Date: December</FONT>&nbsp;
<FONT face="serif">22,</FONT>&nbsp;<FONT face="serif">2008</FONT></TD>
	</tr>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
<FONT face="serif">Thomas Becker, Director</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
&nbsp;
	</TD>
</TR>
<tr>
	<TD width=69% nowrap align=left>
<FONT face="serif">By:</FONT> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width="27%" nowrap align=left colspan="5">
<FONT face="serif">Date: December</FONT>&nbsp;
<FONT face="serif">22,</FONT>&nbsp;<FONT face="serif">2008</FONT></TD>
	</tr>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
<FONT face="serif">William Glick, Director</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
&nbsp;
	</TD>
</TR>
<tr>
	<TD width=69% nowrap align=left>
<FONT face="serif">By:</FONT><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width="27%" nowrap align=left colspan="5">
<FONT face="serif">Date: December</FONT>&nbsp;
<FONT face="serif">22,</FONT>&nbsp;<FONT face="serif">2008</FONT></TD>
	</tr>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
<FONT face="serif">Charles Hughes, Director</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
&nbsp;
	</TD>
</TR>
<tr>
	<TD width=69% nowrap align=left>
<FONT face="serif">By:<u>/s/ Maryann Keller&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></FONT>&nbsp; </TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width="27%" nowrap align=left colspan="5">
<FONT face="serif">Date: December</FONT>&nbsp;
<FONT face="serif">22,</FONT>&nbsp;<FONT face="serif">2008</FONT></TD>
	</tr>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
<FONT face="serif">Maryann Keller, Director</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
&nbsp;</TD>
	<TD width=2%>
&nbsp;</TD>
	<TD width=15% nowrap align=left>
&nbsp;</TD>
	<TD width=2%>
&nbsp;</TD>
	<TD width=3% nowrap align=left>
&nbsp;</TD>
	<TD width=2%>
&nbsp;</TD>
	<TD width=5% nowrap align=left>
&nbsp;</TD>
</TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">v</FONT><B><FONT size=2 face="serif">}</FONT></B></P>

<HR noshade align="center" width="100%" size=2>

<!--$$/page=-->
<TABLE border=0 cellspacing=1 cellpadding=0 id="table3">
<tr>
	<TD width=69% nowrap align=left>
<FONT face="serif">By:</FONT><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u> </TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width="27%" nowrap align=left colspan="5">
<FONT face="serif">Date: December</FONT>&nbsp;
<FONT face="serif">22,</FONT>&nbsp;<FONT face="serif">2008</FONT></TD>
	</tr>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
<FONT face="serif">A. J. Wagner, Director</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=69% nowrap align=left>
&nbsp;</TD>
	<TD width=2%>
&nbsp;</TD>
	<TD width=15% nowrap align=left>
&nbsp;</TD>
	<TD width=2%>
&nbsp;</TD>
	<TD width=3% nowrap align=left>
&nbsp;</TD>
	<TD width=2%>
&nbsp;</TD>
	<TD width=5% nowrap align=left>
&nbsp;</TD>
</TR>
</TABLE>
<A name="page_6"></A>

<P align="center">
<U><FONT face="serif">EXHIBIT INDEX</FONT></U><p>
</P>
<TABLE width="271"><TR><TD nowrap>
<U><FONT face="serif">Exhibit</FONT></U><BR>
</TD></TR></TABLE>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	</TD>
	<TD nowrap valign=top>
<FONT face="serif">5.1</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">Opinion of Foster Pepper LLP</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">23.1</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">Consent of Independent Registered Public Accounting Firm</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">23.2</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">Consent of Foster Pepper LLP (included in Exhibit 5.1)</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">99</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">1998 Employee Stock Purchase Plan, as amended</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>	<TD width=100%>
<FONT face="serif">(Incorporated by reference to Form 8-K, filed March 21, 2006, (SEC File No. 001-14733))</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">vi</FONT><B><FONT size=2 face="serif">}</FONT></B></P>

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<A name="page_7"></A>

<P align="center">
<TABLE><TR><TD nowrap>
<U><FONT face="serif">EXHIBIT 5.1</FONT></U><FONT face="serif"> </FONT><BR>
<FONT face="serif">[FOSTER PEPPER LETTERHEAD]</FONT><BR>
</TD></TR></TABLE>
</P>
<p>
<FONT face="serif">December 22, 2008</FONT></p>
<p>
<FONT face="serif">Board of Directors </FONT><BR>
<FONT face="serif">Lithia Motors, Inc. </FONT><BR>
<FONT face="serif">360 E. Jackson St. </FONT><BR>
<FONT face="serif">Medford, Oregon 97501</FONT></p>
<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=25% nowrap align=right>
<FONT face="serif">Re:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=72% nowrap align=left>
<FONT face="serif">Form S-8 Registration</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=25% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=72% nowrap align=left>
<FONT face="serif">1998 Employee Stock Purchase Plan</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
</TABLE><BR>
<FONT face="serif">Gentlemen:</FONT><P>
<FONT face="serif"> This firm is special counsel to Lithia Motors, Inc., an Oregon corporation, (the &#147;Company&#148;) and, in that capacity, has assisted in the preparation of certain documents, including Company&#146;s Registration Statement on
Form S-8 (the &#147;Registration Statement&#148;) relating to the issuance of up to 1,000,000 additional shares of the Company&#146;s Class A Common stock (&#147;Shares&#148;) in accordance with the Company&#146;s 1998 Employee Stock Purchase Plan,
as amended and restated (the &#147;Plan&#148;).</FONT></P>
<P>
<FONT face="serif"> In the course of our representation described above, we have examined the Plan, the Registration Statement as prepared for filing with the Securities and Exchange Commission and related documents and correspondence.  We have
reviewed the Restated Articles of Incorporation and the Bylaws of the Company, as amended and restated, and excerpts of minutes of certain meetings of the Board of Directors and shareholders of the Company. We have also received from the officers of
the Company certificates and other representations concerning factual matters relevant to this opinion. We have received such certificates from, and have made inquiries of public officials in those jurisdictions in which we have deemed it
appropriate. </FONT></P>
<P>
<FONT face="serif"> As to matters of fact, we have relied upon the above certificates, documents and investigation. We have assumed without investigation the genuineness of all signatures and the authenticity and completeness of all of the documents
submitted to us as originals and the conformity to authentic and complete original documents of all documents submitted to us as certified or photostatic copies. </FONT></P>
<P>
<FONT face="serif">Based upon and subject to all of the foregoing, we are of the opinion that:</FONT></P>
<P align="center">
<FONT size=2 face="serif">vii</FONT><B><FONT size=2 face="serif">}</FONT></B></P>

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<A name="page_8"></A>

<P>
<FONT face="serif">The Shares have been validly authorized, and when (i) the Registration Statement has become effective; (ii) the applicable provisions of the Securities Act of 1933, as amended, and such state securities laws as may be applicable
have been complied with, and (iii) the Shares have been issued in accordance with the Plan as contemplated by this Registration Statement, the Shares will be validly issued, fully paid and non-assessable. </FONT></P>
<P>
<FONT face="serif"> Regardless of the states in which members of this firm are licensed to practice, this opinion is limited to the present laws of the State of Oregon and the United States of America and to the facts bearing on this opinion as they
exist on the date of this letter. We disclaim any obligation to review or supplement this opinion or to advise you of any changes in the circumstances, laws or events that may occur after this date or otherwise update this opinion. </FONT></P>
<P>
<FONT face="serif"> This opinion is provided to you as a legal opinion only, and not as a guaranty or warranty of the matters discussed herein. Our opinion is limited to the matters expressly stated herein, and no other opinions may be implied or
inferred. </FONT></P>
<P>
<FONT face="serif"> The opinions expressed herein are for the benefit of and may be relied upon only by you in connection with the Plan. Neither this opinion nor any extract therefrom nor reference thereto shall be published or delivered to any
other person or otherwise relied upon without our expressed written consent.</FONT></P>
<P>
<FONT face="serif"> We hereby consent to the filing of this opinion with the Securities and Exchange Commission as an exhibit to the Registration Statement. In giving this consent, we do not admit that we are within the category of persons whose
consent is required under Section 7 of the Securities Act of 1933, as amended, or the General Rules and Regulations of the Commission. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">Very truly yours, <br>
</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">FOSTER PEPPER LLP</FONT><p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="serif">/s/ FOSTER PEPPER LLP</FONT></P>
<P align="right">
<p>
</P>
<TABLE width="262"><TR><TD nowrap>
<FONT face="serif">Portland, Oregon</FONT><BR>
</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">viii</FONT><B><FONT size=2 face="serif">}</FONT></B></P>

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<A name="page_9"></A>

<P align="center">
<FONT face="serif">Exhibit 23.1</FONT><p>
</P>
<P align="center">
<U><FONT face="serif">Consent of Independent Registered Public Accounting Firm</FONT></U></P>
<TABLE><TR><TD nowrap>
<FONT size=2 face="serif">The Board of Directors </FONT><BR>
<FONT size=2 face="serif">Lithia Motors, Inc. and subsidiaries:</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">We consent to the use of our reports dated April 10, 2008, with respect to the consolidated balance sheets of Lithia Motors, Inc. and subsidiaries as of December 31, 2007 and 2006, and the related consolidated statements of
operations, changes in stockholders&#146; equity and comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2007, and the effectiveness of internal control over financial reporting as of December 31,
2007, incorporated herein by reference.</FONT></P>
<P>
<FONT size=2 face="serif">Our report dated April 10, 2008, on the effectiveness of internal control over financial reporting as of December 31, 2007, expresses our opinion that Lithia Motors, Inc. and subsidiaries did not maintain effective internal
control over financial reporting as of December 31, 2007, because of the effect of material weaknesses on the achievement of the objectives of the control criteria and contains an explanatory paragraph that states that management has identified and
included in its assessment material weaknesses related to revenue recognition and accounting for manufacturer rebate programs. </FONT></P>
<P>
<FONT size=2 face="serif">Our report dated April 10, 2008, on the consolidated financial statements referred to above, contains an explanatory paragraph referring to the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004),
</FONT><I><FONT size=2 face="serif">Share-Based Payment. </FONT></I></P>
<P align="center">
<TABLE><TR><TD nowrap>
<FONT face="serif">/s/ KPMG LLP</FONT><BR>
</TD></TR></TABLE>
</P>
<TABLE><TR><TD nowrap>
<FONT size=2 face="serif">Portland, OR </FONT><BR>
<FONT size=2 face="serif">December 22, 2008</FONT><BR>
</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">ix</FONT><B><FONT size=2 face="serif">}</FONT></B></P>

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</BODY>

</HTML>
[{"type": "S-8", "sequence": "1", "filename": "fs8lad122208.htm", "description": "FORM S-8", "secsgml_size_bytes": 41308}]
{"company-data": {"conformed-name": "LITHIA MOTORS INC", "cik": "0001023128", "assigned-sic": "5500", "irs-number": "930572810", "state-of-incorporation": "OR", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-156410", "film-number": "081265266"}, "business-address": {"street1": "360 E JACKSON ST", "city": "MEDFORD", "state": "OR", "zip": "97501", "phone": "541-776-6899"}, "mail-address": {"street1": "360 E JACKSON ST", "city": "MEDFORD", "state": "OR", "zip": "97501"}}
-- Converted by SECPublisher 3.1.0.1, created by BCL Technologies Inc., for SEC Filing
Filed with the Securities and Exchange Commission on
Securities Act Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
LITHIA MOTORS, INC.
(Exact name of registrant as specified in its charter)
Oregon
93-0572810
(State of incorporation)
(I.R.S. Employer Identification No.)
360 E. Jackson St., Medford, Oregon
97501
(Address of principal executive offices)
(Zip Code)
LITHIA MOTORS, INC. 1998 EMPLOYEE STOCK PURCHASE PLAN
(Full title of the plan)
Sidney B. DeBoer, Chief Executive Officer
360 E. Jackson St.
Medford, Oregon 97501
(541) 776-6899
(Name, address and telephone number
of agent for service)
Copies to:
Kenneth E. Roberts, Esq.
Foster Pepper LLP
601 SW 2
nd
Avenue, Suite 1800
Portland, Oregon 97204
Indicate by check mark whether the registrant is a large accelerated filer, and accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer,"
"accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check One)
Large accelerated filer
[   
]
Accelerated filer
[X ]
Non-accelerated filer
[    ]
Smaller reporting company   [   
]
(Do not check if a smaller reporting company)
CALCULATION OF REGISTRATION FEE
Proposed
Proposed
Maximum
Maximum
Amount of
Title of Securities to
Amount to be
Offering Price
Aggregate
Registration
be Registered
Registered (1)
Per Unit (2)
Offering Price (2)
Fee
Class A Common Stock
1,000,000
$3.52
$3,520,000.00
$138.34
(1)
The shares of Common Stock represent the number of shares which may be issued pursuant to the 1998 Employee Stock Purchase Plan. In addition, pursuant to Rule 416, this Registration Statement also covers an indeterminate
number of additional shares which may be issuable as a result of the anti-dilution provisions of Plan.
(2)
The maximum offering price for the shares cannot presently be determined as the offering price is established at the time shares are issued. Pursuant to Rule 457(h), the offering price is estimated based on the last sale
price reported for the Common Stock on NYSE on December 22, 2008 and the maximum offering price is calculated for the sole purpose of determining the Registration Fee.
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
At the Annual Meeting of Shareholders of Lithia Motors, Inc., (the "Company") held on May 21, 2008, the shareholders of the Company approved an amendment to the Company's 1998 Employee Stock Purchase Plan
("Plan") increasing the number of shares of Common Stock authorized for issuance pursuant to the Plan from the previously registered amount of 2,450,000 shares to 3,450,000 shares.
The purpose of this Registration Statement on Form S-8 is to register the additional 1,000,000 shares of Common Stock issuable under the Plan.
Item 3. Incorporation of Documents by Reference.
The following documents filed by Lithia Motors, Inc. (the "Company") with the Securities and Exchange Commission are incorporated by reference in this registration statement:
1.     The Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007 filed April 11, 2008 (SEC File No. 001-14733).
2.     The Company's Quarterly Report on Form 10-Q for the periods ending March 31, 2008, filed May 12, 2008; June 30, 2008, filed August 18, 2008; and September 30, 2008, filed November 7, 2008 (SEC File NO. 001-14733).
3.     The Company's Form 8-K's filed, April 1, 2008, April 9, 2008, April 11, 2008, April 14, 2008, April 29, 2008, June 3, 2008, June 4, 2008, June 5, 2008, July 1, 2008, July 14 2008, July 28, 2008, August 7, 2008,
August 8, 2008, August 12, 2008, August 13, 2008, August 19, 2008, August 25, 2008, October 10, 2008, October 21, 2008, October 28, 2008 and November 6, 2008.
All other reports filed by the Company pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), since the end of the fiscal year covered by the 2007 Annual Report; and all
documents subsequently filed pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters all securities then
remaining unsold, shall be deemed to be incorporated by reference into this Registration Statement and to be a part hereof from the date of filing of such documents.
For purposes of this Registration Statement, any statement contained in a document incorporated or deemed to be incorporated herein by reference shall be deemed to be modified or superseded to the extent that a statement
contained herein or in any other subsequently filed document that also is or is deemed to be incorporated herein by reference modifies or supersedes such statement in such document. Any statement so modified or superseded shall not be deemed, except
as so modified or superseded, to constitute a part of this Registration Statement.
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Item 8.  Exhibits.
See Exhibit Index
Item 9.  Undertakings.
The undersigned registrant hereby undertakes:
(A) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(1)
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(2)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement;
(3)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
Provided however, that paragraphs 1 and 2 do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by the registrant pursuant to Section 13 or
Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement.
(B)     That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(C)     To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(D)     That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that is
incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.
(E)     Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant, pursuant to the provisions described in Item 6, or
otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as
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expressed in the Act and is, therefore, unenforceable.  In the event that the claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the
final adjudication of such issue. The foregoing undertaking shall not apply to indemnification which is covered by insurance.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Medford, State of Oregon, on the 22
nd
day of December, 2008.
LITHIA MOTORS, INC.
(Registrant)
By:
/s/ Jeffrey B. DeBoer
Jeffrey B. DeBoer
Chief Financial Officer
POWER OF ATTORNEY
Each person whose individual signature appears below hereby authorizes and appoints SIDNEY B. DEBOER and JEFFREY B. DEBOER, and each of them, with full power of substitution to act as his true and lawful attorney in fact and
agent to act in his name, place and stead, and to execute in the name and on behalf of each person, individually and in each capacity stated below, and to file any and all amendments to this registration, including any and all post-effective
amendments or new registration pursuant to Rule 462.
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the date indicated.
By:
Date: December
22,
2008
Sidney B. DeBoer, Chief Executive Officer and
Chairman of the Board of Directors
By:
/s/ Bryan B. DeBoer
Date: December
22,
2008
Bryan B. DeBoer, President, Director
By:
/s/ Thomas Becker
Date: December
22,
2008
Thomas Becker, Director
By:
Date: December
22,
2008
William Glick, Director
By:
Date: December
22,
2008
Charles Hughes, Director
By:
/s/ Maryann Keller
Date: December
22,
2008
Maryann Keller, Director
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By:
Date: December
22,
2008
A. J. Wagner, Director
EXHIBIT INDEX
Exhibit
5.1
Opinion of Foster Pepper LLP
23.1
Consent of Independent Registered Public Accounting Firm
23.2
Consent of Foster Pepper LLP (included in Exhibit 5.1)
99
1998 Employee Stock Purchase Plan, as amended
(Incorporated by reference to Form 8-K, filed March 21, 2006, (SEC File No. 001-14733))
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EXHIBIT 5.1
[FOSTER PEPPER LETTERHEAD]
December 22, 2008
Board of Directors
Lithia Motors, Inc.
360 E. Jackson St.
Medford, Oregon 97501
Re:
Form S-8 Registration
1998 Employee Stock Purchase Plan
Gentlemen:
This firm is special counsel to Lithia Motors, Inc., an Oregon corporation, (the "Company") and, in that capacity, has assisted in the preparation of certain documents, including Company's Registration Statement on
Form S-8 (the "Registration Statement") relating to the issuance of up to 1,000,000 additional shares of the Company's Class A Common stock ("Shares") in accordance with the Company's 1998 Employee Stock Purchase Plan,
as amended and restated (the "Plan").
In the course of our representation described above, we have examined the Plan, the Registration Statement as prepared for filing with the Securities and Exchange Commission and related documents and correspondence.  We have
reviewed the Restated Articles of Incorporation and the Bylaws of the Company, as amended and restated, and excerpts of minutes of certain meetings of the Board of Directors and shareholders of the Company. We have also received from the officers of
the Company certificates and other representations concerning factual matters relevant to this opinion. We have received such certificates from, and have made inquiries of public officials in those jurisdictions in which we have deemed it
appropriate.
As to matters of fact, we have relied upon the above certificates, documents and investigation. We have assumed without investigation the genuineness of all signatures and the authenticity and completeness of all of the documents
submitted to us as originals and the conformity to authentic and complete original documents of all documents submitted to us as certified or photostatic copies.
Based upon and subject to all of the foregoing, we are of the opinion that:
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The Shares have been validly authorized, and when (i) the Registration Statement has become effective; (ii) the applicable provisions of the Securities Act of 1933, as amended, and such state securities laws as may be applicable
have been complied with, and (iii) the Shares have been issued in accordance with the Plan as contemplated by this Registration Statement, the Shares will be validly issued, fully paid and non-assessable.
Regardless of the states in which members of this firm are licensed to practice, this opinion is limited to the present laws of the State of Oregon and the United States of America and to the facts bearing on this opinion as they
exist on the date of this letter. We disclaim any obligation to review or supplement this opinion or to advise you of any changes in the circumstances, laws or events that may occur after this date or otherwise update this opinion.
This opinion is provided to you as a legal opinion only, and not as a guaranty or warranty of the matters discussed herein. Our opinion is limited to the matters expressly stated herein, and no other opinions may be implied or
inferred.
The opinions expressed herein are for the benefit of and may be relied upon only by you in connection with the Plan. Neither this opinion nor any extract therefrom nor reference thereto shall be published or delivered to any
other person or otherwise relied upon without our expressed written consent.
We hereby consent to the filing of this opinion with the Securities and Exchange Commission as an exhibit to the Registration Statement. In giving this consent, we do not admit that we are within the category of persons whose
consent is required under Section 7 of the Securities Act of 1933, as amended, or the General Rules and Regulations of the Commission.
Very truly yours,
FOSTER PEPPER LLP
/s/ FOSTER PEPPER LLP
Portland, Oregon
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Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
The Board of Directors
Lithia Motors, Inc. and subsidiaries:
We consent to the use of our reports dated April 10, 2008, with respect to the consolidated balance sheets of Lithia Motors, Inc. and subsidiaries as of December 31, 2007 and 2006, and the related consolidated statements of
operations, changes in stockholders' equity and comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2007, and the effectiveness of internal control over financial reporting as of December 31,
2007, incorporated herein by reference.
Our report dated April 10, 2008, on the effectiveness of internal control over financial reporting as of December 31, 2007, expresses our opinion that Lithia Motors, Inc. and subsidiaries did not maintain effective internal
control over financial reporting as of December 31, 2007, because of the effect of material weaknesses on the achievement of the objectives of the control criteria and contains an explanatory paragraph that states that management has identified and
included in its assessment material weaknesses related to revenue recognition and accounting for manufacturer rebate programs.
Our report dated April 10, 2008, on the consolidated financial statements referred to above, contains an explanatory paragraph referring to the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004),
Share-Based Payment.
/s/ KPMG LLP
Portland, OR
December 22, 2008
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}