UPDATE 1-Lithia Motors posts quarterly net loss on charges

(Adds details on charges, revenue and restructuring)

DETROIT, Aug 7 (Reuters) - Car dealership chain Lithia Motors Inc (LAD.N: Quote, Profile, Research, Stock Buzz) posted a huge quarterly net loss on Thursday after taking impairment charges due to a business restructuring driven by the downturn in U.S. auto sales.

U.S. carmakers and dealers have been struggling with what has now been described as a permanent shift in consumer demand toward cars and crossovers and away from large trucks and SUVs in the face of rising gas prices and a slumping U.S. economy.

About 32.5 percent of Lithia's new car sales were Chrysler [CBS.UL] brands and 18.1 percent General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) brands.

Lithia posted a net loss of $243.8 million, or $12.27 per share net loss in the second quarter, compared with net income of $7.9 million, or 38 cents per share, a year earlier. Total revenue plunged 19.2 percent to $665.1 million.

Excluding impairment charges, Lithia reported earnings of 10 cents per share from continuing operations.

Lithia recorded a non-cash after-tax impairment charge of $210.6 million to write-off the entire balance of goodwill and a $32.8 million non-cash after-tax charge related to franchise value and other long-lived assets.

Lithia said its recent restructurings, including putting stores up for sale, the deterioration in the business climate, its reduced earnings forecast and the significant decrease in share price warranted a test of goodwill.

On July 1, Lithia withdrew its earnings outlook, citing weak June vehicle sales and the shift in consumer demand due to rising gas prices. Same-store sales fell 20.8 percent in the quarter from a year earlier, Lithia said on Thursday.  Continued...