7:30 am, November 11, 2024
Group 1 Automotive says it is conducting a ‘review of its corporate support functions’ amid rumours of job losses as a result of its deal to buy Inchcape’s dealer network.
The US giant sealed a £346m deal to buy Inchcape’s UK dealerships over the summer, effectively doubling its own footprint on this side of the Atlantic.
Car Dealer has since been told by an insider that the group is carrying out a ‘cull’ of staff, largely consisting of employees who joined as part of the Inchcape deal.
One former employee, who did not wish to be named, told Car Dealer that the group was ‘knee deep’ in cuts and claimed that 57 members of staff were let go in the latest round of job losses last week.
He also claimed that the scheduled date to remove staff currently stands at December 26 – leaving employees facing an extremely uncertain festive period.
The situation mirrors a similar scenario at Lookers, who last year placed servicing teams across its dealer network at risk of redundancy just weeks before Christmas, having been taken over by the Canadian-backed Global Auto Holdings.
Group 1 Automotive’s UK business is now led by Mark Raban, who was previously the boss at Lookers, until shortly after the takeover.
Speaking on the condition of anonymity, one former Group 1 employee said: ‘Group 1 are now knee deep in culling the remaining staff, mainly those that are formerly of Inchcape.
‘The scheduled date to remove staff is December 26 which makes for a fairly dismal Christmas for those going through the process.
‘This week’s cull was around 57 staff and this is now just the start.’
In response to the claims, Group 1 Automotive said that its is ‘continuing to support all colleagues’ during its ongoing review.
However, the company but did not address any of the specific allegations put to them by Car Dealer.
A spokesman for the dealer group said: ‘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.’
