UK car dealership set to close 16 sites and cut hundreds of jobs

A UK car dealership is set to close 16 sites and cut 250 jobs after a takeover by a US firm. US firm Lithia confirmed four remaining CarStore sites will be kept open and refranchised, while seven CarStore pods will become Evans Halshaw Direct sites.

It will be closing nine CarStore sites and seven CarStore pods this quarter in order to focus on Evans Halshaw and Stratstone. Four CarStore sites will be retained and refranchised, expanding its retail operations with three existing OEMs, while seven remaining CarStore pods will become Evans Halshaw Direct sites.

Lithia said customers will be contacted in due course, to explain how any closures may impact them. The closures follow hard on the recent takeover of Pendragon’s dealer and fleet business by Lithia, which also owns Jardine dealerships in the UK.

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A spokesman for Lithia said in a statement on Tuesday: "Following the acquisition and ongoing merger, we have carried out an initial review across the group. As a result of which, we will be going into consultation with a number of our colleagues around potential redundancies. All colleagues have been notified today, to explain how they may be impacted."

They went on and added: "We will be closing nine CarStore sites and seven CarStore pods this quarter in order to focus on Evans Halshaw and Stratstone. Four CarStore sites will be retained and re-franchised, expanding our retail operations with three existing carmakers, while seven remaining CarStore pods will become Evans Halshaw Direct sites."

Neil Williamson, regional president of Lithia UK, told Motor Trader in a statement on Tuesday: "The bringing together of Pendragon and Jardine Motors Group under Lithia & Driveway has illustrated the synergies across these two great businesses. We are committed to growing in the most efficient way possible as we move through 2024."