9:17 am, April 3, 2023
A small local Skoda dealership has been forced to close after the brand decided to ‘increase focus towards online sales’, it has been claimed.
Underwoods Skoda in Colchester closed its doors for the final time last Friday (March 31) with bosses putting the move down to ‘changing times within the motor industry’.
Managing director Gerry Wiggins said the decision was ‘not one of Underwoods making’ despite the firm giving almost 20-years’ loyal service to Skoda.
Instead, he said the closure was down to the Czech brand’s desire to shrink its dealer network in favour of online car sales going forward.
Speaking to the Daily Gazette and Essex County Standard, he said: ‘It is great sadness that we must confirm the closure of Skoda in Colchester.
‘The decision to close was not one of Underwoods making, as we have been successfully representing Skoda for over 19 years.
‘As I am sure you are aware these are changing times within the motor industry, including online sales.
‘Skoda has decided to reduce the number of dealers in their network, with an increased focus towards online sales.’
Underwoods has represented Skoda at the Colchester site since 2004.
It says it will continue to work with the brand at its other sites in Sudbury and Clacton and the majority of staff will keep their jobs, albeit working at different locations.
Wiggins added: ‘We will continue to provide maintenance and warranty repairs at our authorised Skoda garages in Sudbury and Clacton.
‘Our customers will be contacted as usual when their vehicle is due to be serviced or an MOT is required.’
This is not the first time that online car sale have been blamed for the closure of a physical dealership.
Last year, we reported that family-run Oldfields in Southport had ceased trading with bosses saying that Cinch and Cazoo had left small firms ‘fighting for scraps’.
Car Dealer has approached Skoda for comment.
