Car industry gloom as 2,000 workers lose jobs
AROUND 1,500 jobs are set to be axed and another 12 showrooms closed at struggling car dealership Lookers as the group announced plans to slash costs in the face of the coronavirus crisis and a tough car market.
The move came as luxury car manufacturer Aston Martin said it plans to cut up to 500 jobs as part of a major restructuring.
Lookers said it was launching redundancy consultations across all areas of the group, which are expected to see around 1,500 jobs go among its 8,100-strong workforce.
It comes as the Altrincham-based group revealed it will shut another 12 sites – either by closure, merging with other showrooms or refranchising – on top of the 15 dealerships being closed already under plans announced in November.
The closures will leave it with 136 dealerships across the UK.
Lookers said the moves will cut costs by about £50million a year.
The group has been hit hard by a difficult car market, which has been compounded by plunging sales amid the lockdown, as well as internal issues after it uncovered a potential fraud within the business in March.
The latest figures from the Society of Motor Manufacturers and Traders out yesterday showed only 20,000 new cars were registered in May – down 89 per cent year-on-year – in the worst May performance since 1952. Aston
Martin said it will shortly launch consultations on the job losses, which have been driven by lower-than-planned production volumes and improved productivity. The restructuring is expected to cost around £12million.
However, it added that the strategy is intended to deliver £10million in operating cost savings each year.