11:16 am, July 22, 2024
Forty people will lose their jobs today when Ken Brown Motors closes its Hyundai sites in Richmond and Letchworth.
The new and used car dealer group, which has held the Hyundai franchise in Richmond since 2018 and Letchworth since 2019, said it had been waiting for an assured renewal contract from the manufacturer following the national network termination in May.
It added that a fruitless search for a new site plus a year of major roadworks outside the Richmond dealership that saw a drop in footfall and caused problems with staff access had compounded the matter.
As such, the uncertain situation had rendered the site no longer viable, it said in a press release issued today.
The release said the closure of the Richmond site had a knock-on impact on the Letchworth dealership, meaning that Ken Brown Motors fell short of Hyundai’s objective of only working with multi-site operators.
Not having the written renewal agreement meant it wasn’t viable to run both sites any longer and they will close today (Jul 22).
Ken Brown Motors managing director Jon Taylor said: ‘We’ve had a good relationship with Hyundai and they’ve been very supportive during the road closure.
‘However, the uncertainty at both sites means that it is no longer viable for us. We continue an excellent partnership with Kia in Stevenage and Harlow and will seek new opportunities to fill the gap.
‘It is with great sadness that 40 members of the team at the two sites will be made redundant as a result of the closure.
‘A massive thank you goes to the staff, some of whom I have worked with for over 20 years, I have a huge appreciation for the job they have done and the support they have given.’
In a statement to Car Dealer, Hyundai Motor UK said: ‘Hyundai Motor UK is saddened by the closure of the Ken Brown Motors sites in Richmond and Letchworth.
‘We have worked very closely with the business over recent years to support its ongoing inclusion within our evolving retail network and very much wanted it to be a partner for the future.
‘Unfortunately, as a result of the extenuating circumstances that its business has faced, it has confirmed that it is no longer able to continue operating the sites.
‘This is not the outcome any of us would have wanted, but we would like to thank Jon and the whole team for their strong partnership and for helping us to strengthen the Hyundai brand over the years.
‘All customers will be contacted and Hyundai Motor UK is working to find alternative partners that could take over ownership of those sites as quickly as possible with as little disruption as possible.’
This article was originally published at 11.16am on July 22, updated at 11.59am the same day after Car Dealer was sent an increased figure for the redundancies plus an updated statement from Ken Brown Motors as a result, and updated again at 8.03am on July 23 with the statement from Hyundai Motor UK
