11:27 am, May 19, 2025
Group 1 Automotive is to close another Volkswagen dealership just days after announcing that shareholders would be paid a hefty dividend.
The US-giant announced profits of £162.9m for Q1 earlier this year with investors in line to receive a healthy dividend of $0.50 (37p) per share as a result.
However, while shareholders look set to pocket a healthy return on their investment, the company’s employees are now facing job losses.
The firm has announced that it will be closing the retail operation at its VW Telford site from the end of this month.
While the premises will remain open as a VW-authorised repair and service centre, multiple job losses are expected to follow as a result.
Sources within Group 1 have told Car Dealer that the firm is looking to deploy as many workers as possible elsewhere, but staff have already been seeking work elsewhere.
A number of the dealership’s workforce have made themselves ‘Open to Work’ on LinkedIn, signifying that they are seeking alternative employment.
Car Dealer understands that a consultation is ongoing with impacted staff, as Group 1 remains keen to keep job losses to a minimum.
However, it is likely that there may be an overall reduction in roles at the site, given that the sales operation is being axed.
A spokesperson for Group 1 Automotive UK told Car Dealer: ‘Our VW Telford site will continue operating as a standalone VW-authorised repair and service centre, and the retail sales operation will end on 31 May 2025.’
The news is the latest closure to come out of Group 1 after the firm also axed Volkswagen Wirral, Volkswagen Cheltenham and Audi Hyde earlier this year.
The group acquired the showrooms as part of its £346m deal to buy Inchcape’s UK dealerships last the summer, effectively doubling its own footprint on this side of the Atlantic.
Since then, the American firm is said to have been ‘knee deep’ in cuts with one insider accusing the group of carrying out a ‘cull’ of former Inchcape staff.
Group 1 Automotive said last year that it had ‘commenced a review of its corporate support functions’.
A spokesman told Car Dealer in November: ‘Following the completion of the Inchcape Retail acquisition in August we commenced a review of our corporate support functions.
‘This review remains ongoing to ensure we are in a strong position to serve our customers and OEM partners effectively as we move forward as one enlarged business.
‘We continue to support all colleagues as we move through this important transition period.’
