UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                  SCHEDULE 13G
                                 (RULE 13d-102)


           INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
            RULES 13d-1(b) (c), AND (d) AND AMENDMENTS THERETO FILED
                            PURSUANT TO RULE 13d-2(b)
                               (AMENDMENT NO. 1)(1)


                           LITHIA MOTORS INCORPORATED
--------------------------------------------------------------------------------
                                (Name of issuer)

                         COMMON STOCK, WITHOUT PAR VALUE
--------------------------------------------------------------------------------
                         (Title of class of securities)

                                    536797103
--------------------------------------------------------------------------------
                                 (CUSIP number)

                                December 31, 2006
--------------------------------------------------------------------------------
             (Date of event which requires filing of this statement)



Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

     [ ] Rule 13d-1(b)
     [X] Rule 13d-1(c)
     [ ] Rule 13d-1(d)


                       (Continued on the following pages)

                               (Page 1 of 8 Pages)


----------------------
     (1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.

     The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).





                                  SCHEDULE 13G

CUSIP NO.  536797103                                           PAGE 2 OF 8 PAGES

--------------------------------------------------------------------------------
     1    NAME OF REPORTING PERSONS
          S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

          PAR INVESTMENT PARTNERS, L.P.
--------------------------------------------------------------------------------
     2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*              (a) [ ]
                                                                         (b) [X]
--------------------------------------------------------------------------------
     3    SEC USE ONLY

--------------------------------------------------------------------------------
     4    CITIZENSHIP OR PLACE OF ORGANIZATION

          STATE OF DELAWARE
--------------------------------------------------------------------------------
  NUMBER OF          5    SOLE VOTING POWER
    SHARES
 BENEFICIALLY             0COMMON STOCK
OWNED BY EACH
 REPORTING
   PERSON
    WITH
                  --------------------------------------------------------------
                     6    SHARED VOTING POWER

                          NONE
--------------------------------------------------------------------------------
                     7    SOLE DISPOSITIVE POWER

                          0 COMMON STOCK
--------------------------------------------------------------------------------
                     8    SHARED DISPOSITIVE POWER

                          NONE
--------------------------------------------------------------------------------
     9    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

          0 COMMON STOCK
--------------------------------------------------------------------------------
     10   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
          [ ]
--------------------------------------------------------------------------------
     11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

          0% COMMON STOCK
--------------------------------------------------------------------------------
     12   TYPE OF REPORTING PERSON *

          PN
--------------------------------------------------------------------------------

                     * SEE INSTRUCTIONS BEFORE FILLING OUT!





                                  SCHEDULE 13G


CUSIP NO. 536797103                                            PAGE 3 OF 8 PAGES

--------------------------------------------------------------------------------
     1    NAME OF REPORTING PERSONS
          S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

          PAR GROUP, L.P.
--------------------------------------------------------------------------------
     2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*              (a) [ ]
                                                                         (b) [X]
--------------------------------------------------------------------------------
     3    SEC USE ONLY

--------------------------------------------------------------------------------
     4    CITIZENSHIP OR PLACE OF ORGANIZATION

          STATE OF DELAWARE
--------------------------------------------------------------------------------
  NUMBER OF          5    SOLE VOTING POWER
    SHARES
 BENEFICIALLY             0 COMMON STOCK
OWNED BY EACH
 REPORTING
   PERSON
    WITH
                  --------------------------------------------------------------
                     6    SHARED VOTING POWER

                          NONE
--------------------------------------------------------------------------------
                     7    SOLE DISPOSITIVE POWER

                          0 COMMON STOCK
--------------------------------------------------------------------------------
                     8    SHARED DISPOSITIVE POWER

                          NONE
--------------------------------------------------------------------------------
     9    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

          0 COMMON STOCK
--------------------------------------------------------------------------------
     10   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
          [ ]
--------------------------------------------------------------------------------
     11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

          0% COMMON STOCK
--------------------------------------------------------------------------------
     12   TYPE OF REPORTING PERSON *

          PN
--------------------------------------------------------------------------------

                     * SEE INSTRUCTIONS BEFORE FILLING OUT!




                                  SCHEDULE 13G

CUSIP NO. 536797103                                            PAGE 4 OF 8 PAGES

--------------------------------------------------------------------------------
     1    NAME OF REPORTING PERSONS
          S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

          PAR CAPITAL MANAGEMENT, INC.
--------------------------------------------------------------------------------
     2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*              (a) [ ]
                                                                         (b) [X]
--------------------------------------------------------------------------------
     3    SEC USE ONLY

--------------------------------------------------------------------------------
     4    CITIZENSHIP OR PLACE OF ORGANIZATION

          STATE OF DELAWARE
--------------------------------------------------------------------------------
  NUMBER OF          5    SOLE VOTING POWER
    SHARES
 BENEFICIALLY             0 COMMON STOCK
OWNED BY EACH
 REPORTING
   PERSON
    WITH
                  --------------------------------------------------------------
                     6    SHARED VOTING POWER

                          NONE
--------------------------------------------------------------------------------
                     7    SOLE DISPOSITIVE POWER

                          0 COMMON STOCK
--------------------------------------------------------------------------------
                     8    SHARED DISPOSITIVE POWER

                          NONE
--------------------------------------------------------------------------------
     9    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

          0 COMMON STOCK
--------------------------------------------------------------------------------
     10   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
          [ ]
--------------------------------------------------------------------------------
     11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

          0% COMMON STOCK
--------------------------------------------------------------------------------
     12   TYPE OF REPORTING PERSON *

          CO
--------------------------------------------------------------------------------

                     * SEE INSTRUCTIONS BEFORE FILLING OUT!



Item 1(a).  Name of Issuer:

            LITHIA MOTORS INCORPORATED

Item 1(b).  Address of Issuer's Principal Executive Offices:

            360 E. Jackson Street
            Medford, Oregon  97501

Item 2(a).  Names of Person Filing:

            PAR Investment Partners, L.P.
            PAR Group, L.P.
            PAR Capital Management, Inc.

Item 2(b).  Business Mailing Address for the Person Filing:

            PAR Capital Management, Inc.
            One International Place, Suite 2401
            Boston, MA 02110

Item 2(c).  Citizenship:

            State of Delaware

Item 2(d).  Title of Class of Securities:

            COMMON STOCK, WITHOUT PAR VALUE

Item 2(e).  CUSIP Number:

            536797103

Item        3. If this statement is filed pursuant to Rules 13d-1(b), or
            13d-2(b), check whether the person filing is a:

            Not Applicable

Item 4.     Ownership:

            (a)  Amount Beneficially Owned:
                        0 COMMON STOCK, without par value

            (b)  Percent of Class:
                        0% COMMON STOCK, without par value

            (c)  Number of shares as to which such person has:

                   (i)  0 COMMON STOCK, without par value


                                  Page 5 of 8



                  (ii)  shared power to vote or to direct the vote:

                  (iii) sole power to dispose or to direct the disposition of:
                        0 COMMON STOCK, without par value

                  (iv)  shared power to dispose or to direct the disposition of:

Item 5.     Ownership of Five Percent or Less of a Class:

            If this statement is being filed to report the fact that as of the
            date hereof the reporting person has ceased to be the beneficial
            owner of more than five percent of the class of securities, check
            the following [ x].

Item 6.     Ownership of More than Five Percent on Behalf of Another Person:

            Not Applicable

Item 7.     Identification and Classification of the Subsidiary Which Acquired
            the Security Being Reported on By the Parent Holding Company:

            Not Applicable

Item 8.     Identification and Classification of Members of the Group:

            Not Applicable

Item 9.     Notice of Dissolution of Group:

            Not Applicable

Item 10.    Certification:

                  By signing below I certify that, to the best of my knowledge
            and belief, the securities referred to above were not acquired and
            are not held for the purpose of or with the effect of changing or
            influencing the control of the issuer of the securities and were not
            acquired and are not held in connection with or as a participant in
            any transaction having that purpose or effect.


                                  Page 6 of 8




                                   Signature

      After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.


Dated: February 14, 2007

                                    PAR INVESTMENT PARTNERS, L.P.
                                    By:   PAR GROUP, L.P.
                                          its general partner
                                    By:   PAR CAPITAL MANAGEMENT, INC.
                                          its general partner

                                    By:   /s/ Gina DiMento
                                          ----------------
                                          Gina DiMento, Vice President


                                    PAR GROUP, L.P.
                                    By:   PAR CAPITAL MANAGEMENT, INC.,
                                          its general partner

                                    By:   /s/ Gina DiMento
                                          ----------------
                                          Gina DiMento, Vice President


                                    PAR CAPITAL MANAGEMENT, INC.

                                    By:   /s/ Gina DiMento
                                          ----------------
                                          Gina DiMento, Vice President


                                  Page 7 of 8




                            JOINT FILING AGREEMENT


      In accordance with Rule 13d-1(k) under the Securities Exchange Act of
1934, as amended, the undersigned agree to the joint filing on behalf of each of
them of a statement on Schedule 13G (including amendments thereto) with respect
to the COMMON STOCK, without par value, of LITHIA MOTORS INCORPORATION and
further agree that this agreement be included as an exhibit to such filing. Each
party to the agreement expressly authorizes each other party to file on its
behalf any and all amendments to such statement. Each party to this agreement
agrees that this joint filing agreement may be signed in counterparts.

      In evidence whereof, the undersigned have caused this Agreement to be
executed on their behalf this 14th day of February, 2007.

                                    PAR INVESTMENT PARTNERS, L.P.
                                    By:   PAR GROUP, L.P.
                                          its general partner
                                    By:   PAR CAPITAL MANAGEMENT, INC.
                                          its general partner

                                    By:   /s/ Gina DiMento
                                          ----------------
                                          Gina DiMento, Vice President



                                    PAR GROUP, L.P.
                                    By:   PAR CAPITAL MANAGEMENT, INC.,
                                          its general partner

                                    By:   /s/ Gina DiMento
                                          ----------------
                                          Gina DiMento, Vice President



                                    PAR CAPITAL MANAGEMENT, INC.

                                    By:   /s/ Gina DiMento
                                          ----------------
                                          Gina DiMento, Vice President


                                  Page 8 of 8