Used car selling giant with 91,000 motors saved from closure after ‘heavy losses' and staff being axed
Despite suffering 'heavy losses' and axing huge numbers of its staff, the firm will remain 'fully operational'.
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A major online car dealer has been saved after major job cuts
Credit: Alamy
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Heycar has been thrown a lifeline
Credit: Heycar
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Volkswagen Financial Services will be incorporating the used car dealer
Credit: Getty
Volkswagen Financial Services (VWFS) initially planned to axe failing firm Heycar, after it made huge losses over several years.
The used car advertising platform first launched in 2019 but lost over £30 million in 2022.
Just a year later, the online advertiser lost £22.4 million as its revenue continued to dwindle.
Its parent company Mobility Trader went into liquidation as a result, but Heycar has been thrown a lifeline by its majority shareholder VWFS.
The German brand has confirmed its plans to integrate the advertiser into its own company, after acquiring ' certain businesses and assets' belonging to Heycar.
Heycar's remaining staff - who were not axed in cost-cutting missions - will be incorporated into Volkswagen's own teams.
A spokesperson for VWFS said: 'While Heycar UK's parent company, Mobility Trader, has entered liquidation, the Heycar platform itself remains fully operational.
'VWFS UK has acquired certain business and assets of the Heycar UK business, ensuring the platform's continuity for users.
"This acquisition underscores VWFS UK's commitment to revolutionise the way customers purchase used vehicles online.
'Following the now completed acquisition, VWFS UK is continuing the process of onboarding the Heycar UK employees.'
Inside the Volkswagen ID
VWFS owns a huge portion of the company, with a staggering 78 per cent stake in the business.
The German-car manufacturer Volkswagen owns 13 per cent, with Renault having the next largest share at nine per cent.
Heycar made headlines after its launch in 2019, when it went on a spending spree which saw it snapping up fellow online firms.
Honest John was bought out of administration in 2020 by Heycar, along with several other sites.
It also took over RAC Cars in a bid to relaunch the car advertising platform.
The news comes as stakeholders scramble to rescue the iconic car brand Lotus's UK plant.
The Chinese-owned car maker is reportedly planning to close the factory, amid Donald Trump's global tariff war.
Labour's Business Secretary Jonathan Reynolds was set to hold a meeting focused on saving the plant, but Lotus has denied claims that it is planning to close down the plant.
A spokesperson added: 'We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.
'The UK is the heart of the Lotus brand — home to our sports car manufacturing, global design centre, motorsport operations, and Lotus Engineering. It is also our largest commercial market in Europe.
'We have invested significantly in R&D and operations in the UK, over the past six years.
"Lotus remains committed to the UK, and its customers, employees, dealers, suppliers, as well as its proud British heritage.'
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