Stellantis and Marshall Motor Group have terminated their dealer partnership by ‘mutual agreement’ in a move which could put hundreds of jobs at risk.
The dealer group currently represents Peugeot and Vauxhall at five sites across the country but all now look set to close as a result of the termination.
Staff were informed of the news last week with operations set to officially shut down at the end of this month.
Peugeot sites affected include showrooms in Cambridge, Gatwick, Medway and St Neots, with Marshall also closing its Vauxhall dealership in Ipswich.
Stellantis says that it is now working to appoint new dealer partners in the regions but insiders at the impacted dealers have accused bosses of using ‘purposefully confusing jargon’.
An insider at one of the condemned Peugeot sites, told The Sun: ‘Staff at all four branches have been told the exact same thing.
‘There is a lot of purposefully confusing jargon being thrown around, but essentially they are not renewing the contracts with Stellantis.
‘There are roughly 60 people at each location, so we’re looking at dozens of jobs being put at risk.
‘They didn’t give staff any particular reason, it doesn’t seem to make much sense to them.’
It is currently unclear how many jobs will be lost as a result of the closures and how many people will be moved to other sites within Marshall’s dealer network.
The dealer group declined to comment when approached by Car Dealer.
Meanwhile, news of the termination has been confirmed by Stellantis, which pledged to offer customers ‘continued representation’ in the areas affected.
A spokesman for the carmaker said: ‘Stellantis UK confirms that, by mutual agreement, our retailer agreements with Marshall as a group has ceased at all their sites.
‘We have appointed new investors to represent our brands in the majority of these locations, therefore offering our customers continued representation for sales and service.’
The latest news comes just months after Marshalls axed four other Stellantis sites earlier this year after the retailer decided to ‘downsize’ its relationship with the manufacturer.
The Car Dealer Top 100 ceased operations at its Peugeot dealerships in Peterborough, Ashford and Canterbury, as well as its Peterborough Vauxhall site in a move which ‘ blindsided’ staff.
A source, who worked at one of the affected sites, told Car Dealer at the time: ‘We were blindsided by it to be honest, we just didn’t see it coming.
‘When the directors came down to tell us last week, they said it wasn’t linked to performance and basically it’s because Marshall is downsizing its number of Stellantis sites for whatever reason.
‘They gave us the usual b*****ks about tough market conditions but that is what it comes down to.’