
Major car UK dealership closes as US giant makes ‘drastic cutbacks' with hundreds more jobs at risk across the country
Following confirmation of a mega deal, around 370 jobs could be lost
STALLED ENGINE Major car UK dealership closes as US giant makes 'drastic cutbacks' with hundreds more jobs at risk across the country
A MAJOR UK car dealership has closed as a US giant makes "drastic cutbacks" with hundreds of jobs at risk across the country.
As part of a £346 million deal, US-based Group 1 is restructuring its UK business.
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Group1 Automotive has closed its Wirral Volkswagen dealership
Credit: Google Streetview
Staff at three UK Volkswagen sites previously said they learned of the "drastic cutbacks" and sites to be axed back in February.
Now, the Volkswagen dealership on Pool Lane in Bromborough, Wirral, has closed down.
It stopped trading on March 31, a spokesperson confirmed.
Group 1 acquired the Volkswagen Wirral, Volkswagen Cheltenham, and Audi Hyde sites to buy Inchcape's UK dealerships last summer.
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By doing so, it effectively doubled its own footprint on this side of the Atlantic.
Since then, the American firm is said to have been "knee deep" in drastic cutsbacks.
A Volkswagen spokesperson told the Globe: 'We can confirm that Group 1 Volkswagen Wirral ceased trading at the end of March and is now closed.
'Our focus when any network changes take place remains on convenience and the highest levels of service.
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'Customers have been contacted to advise them of alternative sales, service and parts facilities.'
It comes as 370 jobs could be lost as part of Group 1's mega deal, AMOnline reports.
Rob Gill takes VW's latest 7-seat SUV for a spin, the Tayron
The top 10 AM100 company announced its latest plans to investors in the US as part of an analyst day presentation on February 13.
The business said the timing of the latest redundancies would be made between the end of the March-plate change in the UK and the end of June.
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Approximately 2,500 people moved across from Inchcape to Group 1.
The combined UK business has around 7,000 employees and the potential loss of 644 roles would amount to an almost 10% reduction in headcount.
A Group 1 spokesperson said: "Following the completion of the Inchcape Retail acquisition in August 2024 we commenced a review of our corporate support functions, which remains ongoing, to ensure that we remain in a strong position to serve our customers and OEM partners effectively.
"We have spoken directly with all the teams impacted, and our focus remains on supporting our colleagues by working closely with them during this transition.
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'In line with other retailers, we continue to face cost headwinds relating to tax increases announced in the last Budget, and in response we have identified opportunities to remove duplication, streamline processes and decentralise certain roles to drive efficiencies across the business."
The dealer group said it is looking to drive growth through integrating and optimising its existing business.

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