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

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 5, 2009

Lithia Motors, Inc.
(Exact Name of Registrant as Specified in Its Charter)

Oregon    0-21789    93 - 0572810 
(State or Other Jurisdiction of    (Commission File    (IRS Employer 
Incorporation or Organization)    Number)    Identification No.) 

360 E. Jackson Street
Medford, Oregon 97501
(address of Principal Executive Offices) (Zip Code)

541-776-6868
Registrant's Telephone Number, Including Area Code

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))

Item 8.01      Other Events.

     On January 5, 2009, Lithia Motors, Inc. issued a press release announcing that the Board of Directors voted to suspend its quarterly dividend for the fourth quarter of 2008. A copy of the press release is attached as Exhibit 99.1.

Item 9.01    Financial Statements and Exhibits. 
 
    (a)    Not applicable. 
    (b)    Not applicable. 
    (c)    Not applicable 
    (d)    Exhibits. 
               99.1 Press Release 

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

            LITHIA MOTORS, INC. 
            (Registrant) 
 
 
Date:    January 5, 2009    By:    /s/ Kenneth E. Roberts 
            Kenneth E. Roberts 
            Assistant Secretary