UK CAR DEALERSHIP TO CLOSE 16 SITES AND CUT 250 JOBS AFTER TAKEOVER BY US FIRM

The US owner of CarStore has announced plans to close 16 UK sites and cut 250 jobs.

Four remaining CarStore sites will be kept open and refranchised, while seven CarStore pods will become Evans Halshaw Direct sites. US firm Lithia Motors confirmed consultations with affected staff are already underway. Lithia agreed to buy CarStore, Evans Halshaw and Stratstone from Pendragon in last year, with the £397million takeover completing in February 2024.

Pendragon employed some 5,500 people in the UK. Lithia has around 340 dealerships across North America and also owns dealership group Jardine Motors, which it acquired in 2022. Evans Halshaw has dealerships for Citroen, Dacia, DS, Ford, Hyundai, Kia, Nissan, Peugeot, Renault and Vauxhall, while Stratstone looks after Aston Martin, BMW, BYD, Ferrari, Genesis, Jaguar, Land Rover, Mercedes-Benz, Mini, Porsche and Smart.

The UK used car market grew by 5.1% in 2023. A spokesman for Lithia said: "Following the acquisition and ongoing merger, we have carried out an initial review across the group. As a result of which, we will be going into consultation with a number of our colleagues around potential redundancies. All colleagues have been notified today, to explain how they may be impacted."

They added: "We will be closing nine CarStore sites and seven CarStore pods this quarter in order to focus on Evans Halshaw and Stratstone. Four CarStore sites will be retained and re-franchised, expanding our retail operations with three existing carmakers, while seven remaining CarStore pods will become Evans Halshaw Direct sites."

Neil Williamson, regional president of Lithia UK, told Motor Trader : "The bringing together of Pendragon and Jardine Motors Group under Lithia & Driveway has illustrated the synergies across these two great businesses. We are committed to growing in the most efficient way possible as we move through 2024."

2024-04-24T07:23:58Z dg43tfdfdgfd