11:21 am, October 28, 2025
Group 1 Automotive is to axe all its UK JLR franchise operations within the next two years as it looks to ‘focus on the right areas for growth and productivity’.
That is according to a memo from the retailer’s UK CEO Mark Raban, which confirms that JLR sites will be ‘phased out’ until 2027.
The message, seen in full by Car Dealer, says that the group will ‘sell or relinquish’ all of its JLR sites and has alerted the carmaker to its decision.
The move has been made in order to ensure that Group 1’s portfolio and operations are ‘aligned with long-term growth ambitions’ but Raban says it is ‘not a reflection on the brand itself’.
It comes after JLR production ground to a shuddering halt for five weeks following a cyberattack on the carmaker’s global IT systems.
The move caused chaos at dealerships, where retailers were left unable to register vehicles on September’s new plate day.
The hack is estimated to have cost the UK almost £2bn – making it the costliest cyber attack in British history.
Raban, who joined Group 1 last October, also confirmed that the firm’s Toyota Burton and Assured Billericay sites will close.
The former Lookers boss told staff: ‘We are continually reviewing how best to optimise our performance in an increasingly dynamic market.
‘This includes evaluating our strategic options to ensure our portfolio and operations are aligned with the long-term growth ambitions of our business.
‘As part of this, we have informed our OEM partner, JLR, of our intention to sell or relinquish our JLR franchise operations in the UK.
‘We also continue to work with other OEM partners to evaluate our portfolio. In this regard, we have today announced our intention to close Toyota Burton and Group 1 Assured Billericay.
‘The transition with JLR will be phased over the next two years. In the meantime, each store will continue to trade and operate as normal.
‘I want to emphasise our continued respect for JLR, its reputation, and the quality of its vehicles. This decision is not a reflection on the brand itself, but rather a strategic move to ensure we are focusing on the right areas for growth and productivity across our wider group.
‘I recognise that this news may be unsettling for those directly affected, and I ask everyone to be mindful of the impact this may have on our colleagues.’
Meanwhile, Raban hinted that carmaker could be replaced by new brand partners, in news which could keep job losses to a minimum.
He told employees that the announcement ‘does not signal a reduction in our brand portfolio’ and said the group was focused on ‘identifying new opportunities for strategic growth’.
‘Importantly, this announcement does not signal a reduction in our brand portfolio,’ he wrote. ‘We remain focused on identifying new opportunities for strategic growth in the UK over the long term.
‘Thank you for your continued dedication and hard work. Your contribution remains vital to our success, and we are confident that these changes will help position us strongly for the future.’
In response to the news, Patrick McGillycuddy, managing director, JLR (UK) said: ‘We are aware of Group 1’s forthcoming portfolio changes.
‘While we do not comment on the commercial decisions of our partners, we remain committed to ensuring continuity of service for our clients and representation of our four iconic brands.
‘We are actively working with Group 1 to explore opportunities for these high-potential locations and to support a smooth transition.’
Group 1 currently operates JLR sites in ten locations – Guildford, North West London, Watford, Sidcup, Southend, Derby, Kings Lynn, Norwich, Chester and Preston.
A spokesperson for Group 1 Automotive UK told Car Dealer: ‘We are continually reviewing how best to optimise our performance in an increasingly dynamic market.
‘This includes evaluating our strategic options to ensure our portfolio and operations are aligned with the long-term growth ambitions of our business.
‘As part of this, we have informed our OEM partner, JLR, of our intention to sell or relinquish our JLR franchise operations in the UK.
‘The transition with JLR will be phased over the next two years. In the meantime, each store will continue to trade and operate as normal.
‘Our colleagues are aware, and our priority and immediate focus is on supporting and working closely with them during this transition.’
News overshadows Q3 results
The decision to wield the axe comes as Group 1 also posted its financial results for the third quarter.
The figures show that in the three months to the end of September, the retailer’s UK operation sold 15,687 new vehicles – an 11% rise on the same point last year.
Used car sales also rose by an impressive 19.3% to 25,972 units, contributing to revenues of $1.5bn (£1.13bn), compared to $1.25bn (£937.95m) this time last year.
While no pre-tax profit figure has been published, gross profit rose by 17.3% to $204.7m (£153.61m).
In the year-to-date, revenues are up 61.9% at $4.61bn (£3.46bn), with gross profit rising 66.9% to $628.8m (£472.01m).
Despite this, bosses say that the UK market remains ‘challenging’ for the US giant with the company spending $1.6m (£1.2m) in restructuring costs during the third quarter alone.
In the nine months to the end of September, the firm has spent $20.3m (£15.26m) on restructuring expenses, amid a major cost-cutting exercise.
Daryl Kenningham, Group 1’s president and CEO, said: ‘The UK market remains challenging, with softer industry volumes and continued BEV-related margin pressure.
‘We are taking steps to strengthen our UK portfolio, and we continue restructuring efforts to make the business more efficient.
‘With our portfolio optimisation efforts, including leveraging Aftersales and F&I as growth levers, we will be positioned to emerge stronger as the market stabilises.’
