12:08 pm, March 3, 2025
Group 1 Automotive has been accused of treating staff like ‘nothings’ after the US giant axed three VW Group dealers from its network.
Staff at Volkswagen Wirral, Volkswagen Cheltenham and Audi Hyde were informed last Monday (Feb 24) that the sites are to be axed as part of drastic cutbacks.
The group acquired the trio as part of its £346m deal to buy Inchcape’s UK dealerships last the summer, effectively doubling its own footprint on this side of the Atlantic.
Since then, the American firm is said to have been ‘knee deep’ in cuts with one insider accusing the group of carrying out a ‘cull’ of former Inchcape staff.
Workers at the three affected sites have been told that the dealerships will cease trading on March 31, with employees hitting out at the ‘cold’ nature of how the decision was handled.
They added that nobody has been offered alternative roles elsewhere, meaning the entire workforce is to be made redundant.
One member of staff from the Cheltenham site told Car Dealer: ‘Everybody is in shock at the Cheltenham branch as nobody was expecting this. We are now all redundant as of March 31.
‘Not even managers or the head of business were aware that the dealership, which has been here for several decades, was going to close.
‘The head of business even moved from a successful Group 1 Audi dealership two weeks before it was announced and now he too is being made redundant.
‘This is really sad as colleagues here are treated as family rather than just people who we work with and now we are being dispersed.
‘This has been done in a very cold fashion by Group 1 but I guess we are nothings in their view.’
Multiple sources have confirmed the closures to Car Dealer with another insider telling us: ‘Group 1 Automotive has announced the closure of three of its sites.
‘The doors will close on March 31. VW Wirral, VW Cheltenham, and Audi Hyde. The announcement was made internally on February 24.’
In response to the comments Group 1 said that the sites were ‘not financially viable’ despite the ‘fantastic efforts’ of staff members.
The firm also told Car Dealer that the firm is indeed working to ‘redeploy as many colleagues as possible’.
A spokesman for Group 1 Automotive said: ‘Due to the ongoing challenges presented by the current economic climate, we are unfortunately having to take some difficult decisions, which include the closure of our VW Wirral and Cheltenham stores, and Audi Approved Hyde.
‘Despite the fantastic efforts from the teams there, these stores are not financially viable and so will close at the end of the month.
‘We have spoken directly to all the teams impacted and our immediate focus is on supporting our impacted colleagues and working closely with them during this transition.
‘We intend to redeploy as many colleagues as possible and support them to apply for other suitable roles within the business.’
The news comes just days after Car Dealer revealed that two other Volkswagen dealerships were being axed by rival dealer Marshall Motor Group.
A spokesman for the manufacturer said last week: ‘We, along with the whole motor industry, are moving through a period of unprecedented change, prompted by new technologies and changing customer expectations.
‘The necessary evolution of the Volkswagen Group UK retailer network, to ensure that we have appropriate representation to meet our customers’ future needs, is a process that has been under way for a couple of years already and will continue into the future.’
Group 1 Automotive said last year that it had ‘commenced a review of its corporate support functions’.
A spokesman told Car Dealer in November: ‘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.’
