Redundancies not ruled out following US firm’s takeover of Pendragon
NEW OWNER ADMITS ‘UNCERTAINTY’ OVER FUTURE OF CAR DEALER
REDUNDANCIES have not been ruled out at a firm which until recently had been the second biggest company in Nottinghamshire.
Us-based dealership giant Lithia and Driveway finished its £397m purchase of the majority of Pendragon, which had been the UK’S third largest car dealership group, on February 1.
Before this purchase, the Annesley-based firm had been second only to Boots in Nottinghamshire in terms of size, but now the only remnant of the company is its Pinewood Technologies division, which will operate out of Birmingham Business Park.
Pendragon’s name was changed to Pinewood Technologies Group PLC on Tuesday, February 13, with the remaining part of the business providing dealership management software.
Previously Pendragon had been a major employer with around 7,000 employees across the country, but now local leaders have suggested that although the firm’s office seems set to stay, redundancies are in the offing.
“We are getting some conflicting reports on the situation,” Matthew Relf, executive lead member for growth, regeneration and local planning, said. “While it looks like there will be some redundancies from the Annesley site there are also strong indications that operations will be continuing at the site.”
Despite the Pendragon’s former Nottinghamshire head office seemingly staying put, statements from Lithia suggest the acquired network of dealerships will be headed up by new bosses in Colchester.
“I have instructed Ashfield District Council’s Business Support team to reach out to offer support to any affected staff,” Mr Relf added.
When questioned on the possibility of job losses for former Pendragon workers, a Lithia UK spokesperson did not rule out redundancies but acknowledged the corporate process could result in “uncertainty”.
“The formation of Lithia UK may generate some uncertainty amongst our teams however, we are committed to remaining transparent and creating a wealth of new opportunities for our colleagues,” the representative said.
“Lithia UK are delighted to be bringing together the talent and expertise of two great automotive businesses. Powered by people we will focus on the growth of our staff and exceptional consumer experience.”
Pendragon had operated the Evans Halshaw and Stratstone brands, and was listed as the sixth largest company in the East Midlands by the East Midlands Chamber in 2023. Lithia said its purchase of the company’s UK motor and fleet management divisions could generate over $4.5 billion in annual revenues.