SEC Form 4

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

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(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person^* Moreland, W. Douglas      (Last)                      (First)                      (Middle) 360 E. Jackson St.
(Street) Medford, OR     97501 (City)                      (State)                      (Zip)
2. Issuer Name and Ticker
    or Trading Symbol
Lithia Motors, Inc.   LAD 3. I.R.S. Identification
    Number of Reporting
    Person, if an entity
    (voluntary) 4. Statement for
    (Month/Year)
    May 2002
5. If Amendment,
    Date of Original
    (Month/Year) 6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
           X          Director                           10% Owner                         Officer                             Other
Officer/Other Description                               7. Individual or Joint/Group
    Filing (Check Applicable Line)
X   Individual Filing       Joint/Group Filing

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1. Title of Security     (Instr. 3)	2. Transaction Date     (Month/Day/Year)	3. Transaction     Code     and     Voluntary     Code     (Instr. 8) Code  |  V	4. Securities Acquired (A) or Disposed (D) Of     (Instr. 3, 4, and 5)         Amount      |         A/D         |         Price	5. Amount of     Securities     Beneficially     Owned at     End ofMonth     (Instr. 3 and 4)	6. Owner-     ship     Form:     Direct(D)     or     Indirect (I)     (Instr. 4)	7. Nature of      Indirect      Beneficial      Ownership     (Instr. 4)
Class A Common	05/16/2002	M |	19,200   |           A           |   $20.830		D
Class A Common	05/16/2002	M |	6,168   |           A           |   $20.830		D
Class A Common	05/16/2002	S |	19,200   |           D           |   $29.820		D
Class A Common	05/16/2002	S |	6,168   |           D           |   $29.820	0	D
Class A Common				663,437	I	By Shares Held By Ltd Partnership

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

(over)
SEC 1474 (3-99)

Moreland, W. Douglas - May 2002

Form 4 (continued)

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. Conver-     sion or     Exercise     Price of     Deri-     vative     Security	3. Transaction     Date     (Month/     Day/     Year)	4. Transaction     Code     and     Voluntary (V)     Code     (Instr.8) Code | V	5. Number of Derivative     Securities Acquired (A)     or Disposed (D) Of     (Instr. 3,4 and 5)	6. Date Exercisable(DE) and     Expiration Date(ED)     (Month/Day/Year)   (DE)     |     (ED)	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     at End of     Month     (Instr.4)	10. Owner- ship Form of Deriv- ative Security: Direct (D) or Indirect (I)	11. Nature of       Indirect       Beneficial       Ownership       (Instr.4)
Series M-2003 Preferred	$0.000 (1)	05/14/2002	J (2) |	(D) 3,904	05/14/2003 |	Class A Common - 0		0	I	By Shares Held By Ltd Partnership
Stock Option (1999dm) (ISO) (right to buy)	$20.830	05/16/2002	M |	(D) 19,200	(3) | 05/14/2004	Class A Common - 19,200		0	D
Stock Option (1999dm) (NQ) (right to buy)	$20.830	05/16/2002	M |	(D) 6,168	(4) | 05/14/2009	Class A Common - 6,168		0	D

Explanation of Responses : Mr. Moreland's employment with issuer terminated and all options not exercised were surrendered to issuer.

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations.
        See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note:   File three copies of this Form, one of which must be manually signed. If space is insufficient,
            See Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB number. By: Cliff E. Spencer, Attorney-in-Fact for         6/10/02
________________________________         __________________
** Signature of Reporting Person                         Date

Power of Attorney

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SEC 1474 (3-99)

Moreland, W. Douglas - May 2002

Form 4 (continued)

FOOTNOTE Descriptions for Lithia Motors, Inc. LAD

Form 4 - May 2002

W. Douglas Moreland
360 E. Jackson St.

Medford, OR 97501

Explanation of responses:

(1)   The Series M Preferred is convertible into a number of shares of Class A common determined on the date of exercise by a formula based on the average trading price of the Class A Common for a period 15 days prior to the date of conversion.
(2)   The reported securities were called for redemption by the issuer.
(3)   The options vest as to 20% of the total grant on the date of grant and 20% each anniversary date thereafter.
(4)   Beginning on the1st anniversary of the grant date, the options vest as to 20% of the total grant on each of the 1st through the 5th anniversaries.

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