11:50 am, October 28, 2026
Group 1 Automotive has made a dramatic U-turn on plans to axe all its Jaguar Land Rover dealerships in the UK, reaching an agreement to retain five sites it had previously earmarked for closure or disposal.
The American-owned dealer group has confirmed it will continue operating its remaining five JLR dealerships, despite announcing plans last year to end its relationship with the manufacturer.
The reversal was revealed in Group 1’s third-quarter financial results, published today (October 28), alongside an 8.1% rise in like-for-like UK new car sales.
In a statement accompanying the results, Group 1 said: ‘The Company reached an agreement with Jaguar Land Rover in the UK to revoke its previous election to terminate 10 JLR franchise agreements, which would have been effective as of August 2027.
‘As a result, the Company will retain and operate the five remaining JLR dealerships in the U.K. it had previously elected to terminate.’
The announcement represents a major change of direction for the retailer, which had been in the process of cutting ties with the British manufacturer.
Exactly a year ago today, Car Dealer reported that Group 1 was planning to ditch all its JLR franchises, with the sites set to be phased out over a two-year period.
The decision was communicated to staff in an internal memo from UK CEO of the time Mark Raban, who left the business in June. He said the group would ‘sell or relinquish’ its JLR dealerships by 2027.
At the time, Raban said the decision would allow Group 1 to ‘focus on the right areas for growth and productivity’, although he insisted it was ‘not a reflection on the brand itself’.
The announcement sparked a series of dealership sales and closures, with other major retailers entering discussions to take over affected sites.
In April, Duckworth Motor Group agreed to acquire Group 1’s JLR dealership in Norwich, while staff at the group’s King’s Lynn operation were told the site would close.
The following month, Lithia UK emerged as a potential buyer for three further JLR dealerships in Chester, Derby and Preston.
Group 1’s latest announcement does not identify which five dealerships will now be retained or explain why it has reversed its original decision.
UK sales increase despite dealership disposals
The JLR announcement came as Group 1 reported mixed results from its UK operations for the three months to September 30.
UK revenues fell 6.6% to $1.4bn (approximately £1.05bn), with the company continuing to dispose of dealerships as part of a wider restructuring programme.
However, new car sales rose 1.9% to 15,984 units, compared with 15,687 during the same period last year.
On a like-for-like basis, new car volumes increased by 8.1%, with 15,467 vehicles sold.
Used car performance was more mixed, although the retailer managed to increase the gross profit made on each vehicle sold.
Used car gross profit per retail unit rose 15.7% to $1,437 (approximately £1,078), compared with $1,242 a year earlier, and on a like-for-like basis, the increase was 13.9%.
Meanwhile, parts and service revenues fell 2.4% to $162.3m (£122m), although they increased 6.4% across comparable dealerships.
The results come as the retailer continues to overhaul its UK estate following its acquisition of Inchcape’s British dealership operations in 2024.
During the third quarter, Group 1 disposed of a Volkswagen dealership and an Audi dealership, which together generated approximately $100m (£75m) in annual revenues.
The company said the annual revenue associated with UK dealerships sold so far this year now totals approximately $495m (£371m).
Chinese brands added to network
Despite continuing to dispose of established franchises, Group 1 is also expanding its UK operations through partnerships with Chinese manufacturers.
The retailer has agreed to open three Geely dealerships, two of which are already trading, with the third expected to open by December.
It has also reached an agreement with Chery to open an Omoda & Jaecoo dealership before the end of the year.
Elsewhere, Group 1 confirmed that it has acquired and integrated three UK dealership operations during 2026, with combined expected annual revenues of approximately $135m (£101m).
Across the wider business, which operates dealerships in Britain and America, third-quarter revenues fell 6.7% to $5.4bn (£4.05bn).
Adjusted net income from continuing operations dropped from $135.1m to $112.1m, while adjusted earnings per share declined from $10.45 to $9.36.
Group 1 president and CEO Daryl Kenningham said the company was continuing to reshape its portfolio around larger and more profitable dealerships.
He said: ‘We have been deliberately reshaping our portfolio into larger, more profitable stores and seeing good progress selling stores that don’t fit our strategy.’
The group now operates 256 dealerships across the US and UK, representing 319 franchises.