VAUXHALL is to reduce the size of its network, Car Dealer Magazine can confirm.
There had been speculation that up to a third of the UK’s Vauxhall dealerships could close in the next year as the manufacturer’s parent company, PSA Group, looks to boost profitability in the face of declining new car sales.
Car Dealer Magazine reported last Thursday about the speculation and it has now had confirmation from the boss of a major dealer group that cuts will be taking place.
‘Yes, they will be reducing the size of the network,’ said the chief, whose identity we are protecting. ‘I have not heard by how much but I will be really surprised if it is as much as a third.
‘I expect they will take out many of the secondary sites, as they will still want representation in the major metropolitan areas.’
Reports had claimed that more than 3,000 jobs could be at risk under plans to close more than 100 showrooms – with sales, workshop and administrative staff all potentially affected.
Any redundancies would come in the wake of the loss of hundreds of jobs at Vauxhall’s factory in Ellesmere Port, Cheshire.
Following news of 400 redundancies in 2017, it was announced at the start of this year that a further 250 jobs would be going at the plant.
The PSA Group, which is made up of the Citroen, Peugeot and DS brands, bought the British car manufacturer last year.
The number of cars sold by Vauxhall fell dramatically in 2017, when the griffin-badged manufacturer shifted 195,137 cars – 22 per cent fewer than the total for 2016 (250,955).
Its sudden decline meant it lost its second place in the list of the top 10 most popular manufacturers to Volkswagen – a carmaker that had its own share of negative headlines during the year.
According to Vauxhall’s website, there are currently 321 dealerships where its new cars are sold.
Car Dealer Magazine approached the company on Thursday for a comment but is still awaiting a reply.
Are you a Vauxhall dealer with the inside track on what’s happening in the network? Call the Car Dealer editorial team on (023) 9252 2434.
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