Restructuring threat to 300 Vauxhall car dealerships
THE axe could fall on as many as 300 Vauxhall car dealerships this week, threatening thousands of jobs. Groupe PSA, the carmaker’s French parent, is expected to unveil a restructuring aimed at reining in costs.
Industry sources said the move could be unveiled as early as today. The company plans to consolidate hundreds of franchised outlets in response to falling sales.
It may also consolidate marques into single sites. The move is in response to a recent collapse in sales across the group’s big brands. Vauxhall slumped 22pc, Citroen was off 18pc and Peugeot fell 17pc, against a 5.7pc slip across the wider UK market. A spokesman for Vauxhall declined to comment on spe- cifics, but added: “There are opportunities for retailers to change: the market is changing, the way people buy cars is changing and the retail network is changing.”
As PSA does not own the dealers it cannot actually close them. Sources close to the company suggest it may offer franchise holders incentives to give up under-performing dealerships.
A meeting between PSA and dealership bosses is scheduled for early May to detail future strategy.
The firm recently pledged to invest £100m in its Luton factory, where it makes Vauxhall vans, a move that will create hundreds of new jobs. It wants to increase production by more than 50pc to 100,000 vehicles a year.
PSA bought the UK carmaker from General Motors last year.
Carlos Tavares, CEO and chairman of the managing board of Groupe PSA, which bought Vauxhall from General Motors