Almost a third of the UK’s 324 Vauxhall dealerships are set to close within the next 12 months, according to reports.
Vauxhall franchisees told Automotive Management “a third of dealerships will go” over the next year, as PSA – the French car giant behind Peugeot and Citroen – aims to restore profitability as it takes over Vauxhall.
The unnamed dealer told Automotive Management: “This is action that the brand needs to take quickly to maintain profitability in the network. It will happen within the next 12 months.”
Vauxhall dealers employ an average of 38 workers, meaning the planned closures would see around 3,800 people lose their jobs.
Vauxhall told Automotive Management any closures within its network would be “part of the normal business cycle”, insisting that “none are related to the acquisition” by PSA.
Speaking to Auto Express, a Vauxhall spokesman said reports of dealer closures were speculation, while a statement released by the company said: “The Opel/Vauxhall PACE! plan [the strategy behind the takeover] is improving the efficiency of the business in all areas. Within the plan, the go-to-market strategy is being carefully reviewed, including the contractual framework with dealers.”
The news follows two rounds of job losses at Vauxhall’s Ellesmere Port factory, with 650 voluntary redundancies announced in previous months.