Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
JONES DON H
  2. Issuer Name and Ticker or Trading Symbol
LITHIA MOTORS INC [LAD]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Sr. Vice President, Retail
(Last)
(First)
(Middle)
360 E. JACKSON ST.
3. Date of Earliest Transaction (Month/Day/Year)
08/01/2007
(Street)

MEDFORD, OR 97501
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Class A Common 08/01/2007   M   8,000 A $ 1 43,047 D  
Class A Common               12,166 I By 401(k)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (2001) (NQ) (right to buy) $ 1 08/01/2007   M     8,000 12/26/2005 12/26/2010 Class A Common 8,000 $ 0 0 D  
Stock Option (2000) (ISO) (right to buy) $ 16.75             01/06/2005 01/06/2010 Class A Common 4,000   4,000 D  
Stock Option (2000a) (ISO) (right ot buy) $ 16.75               (1) 01/06/2010 Class A Common 14,446   14,446 D  
Stock Option (2000c) (NQ) (right to buy) $ 16.75               (2) 01/06/2010 Class A Common 5,554   5,554 D  
Stock Option (2001iso) (right to buy) $ 19.24             12/26/2006 12/26/2011 Class A Common 5,197   5,197 D  
Stock Option (2002iso) (right to buy) $ 15.13             12/26/2007 12/26/2012 Class A Common 6,609   6,609 D  
Stock Option (2002nq) (right to buy) $ 15.13             12/26/2007 12/26/2012 Class A Common 1,391   1,391 D  
Stock Option (right to buy) $ 29.42             03/11/2009 03/11/2010 Class A Common 8,001   8,001 D  
Stock Option (right to buy) $ 27.58             02/09/2010 02/09/2011 Class A Common 12,000   12,000 D  
Stock Option (2001nq) (right to buy) $ 19.24             12/26/2006 12/26/2011 Class A Common 2,803   2,803 D  
Stock Option (right to buy) $ 31.67             03/10/2011 03/10/2012 Class A Common 14,000   14,000 D  
Stock Option (right to buy) $ 28.34             03/09/2012 03/09/2013 Class A Common 14,000   14,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
JONES DON H
360 E. JACKSON ST.
MEDFORD, OR 97501
      Sr. Vice President, Retail  

Signatures

 By: Cliff E. Spencer, Attorney in Fact for   08/01/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The option vests as follows: 4,000 on 1/6/01; 4,000 on 1/6/02; 2,447 on 1/6/03; 2,029 on 1/6/04 and 1,970 on 1/6/05
(2) The options vest as follows: 1,553 on 1/6/03; 1,971 on 1/6/04; and 2,030 on 1/6/05

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