8:15 am, May 6, 2026
Dealer group Lithia UK is eyeing a deal to buy three JLR sites as Group 1 Automotive continues to dispose of showrooms.
The American-owned Group 1 announced back in October that it would be ending its partnership with JLR, in order to ‘align with long-term growth ambitions’.
The news has sparked a frenzy of other dealer groups looking to get their hands on the sites, with Duckworth Motor Group recently confirming a deal to acquire all the group’s Norfolk Jaguar Land Rover sites.
Car Dealer has now been told that talks are ongoing about the future of stores in Chester, Derby and Preston, with insiders saying that a deal for Lithia UK to take them over could be close.
The Derby showroom previously made headlines in 2023, when a flood left the site under several feet of water, with the response sparking fury among customers.
In response to the latest rumours, the retail giant confirmed it had begun ‘initial discussions’ over an acquisition but insisted that talks remain at a ‘very early stage’.
A spokesperson for Lithia UK said: ‘We can confirm that we have recently begun initial discussions with Group 1 regarding a potential transaction involving their JLR stores in Chester, Derby and Preston. These conversations are at a very early stage.’
A spokesperson for Group 1 Automotive added: ‘We can confirm that we are in discussions with Lithia UK regarding the potential sale of our JLR franchise stores in Chester, Derby and Preston.
‘Until any transaction completes, the sites remain part of Group 1 Automotive UK, and it remains business as usual for customers and colleagues.’
Lithia UK has been growing its Jaguar Land Rover presence over recent years, having completed a deal to buy specialist JLR retailer Hatfields in October.
That acquisition added dealerships in Hull, Liverpool, Pickering, and Shrewsbury to Lithia’s Land Rover network, bringing its total to 11, including sites that also serve Jaguar customers with used car sales, servicing, and repairs.
However, the takeover – believed to be worth around £70m – was not without controversy, with Lithia UK announcing redundancies across its wider business just days later.
The firm, which also owns Evans Halshaw and Stratstone, having acquired the groups from Pendragon, later revealed that shareholders had received a £50m dividend at the same time bosses were axing hundreds of jobs in a major cost-cutting exercise.
