Major car dealership to close with ‘job losses' expected in just days – months after brand closed three other sites

Scottish Sun

19-05-2025

That's despite the group announcing profits of £162.9m in its first quarter
SHUT UP SHOP Major car dealership to close with 'job losses' expected in just days – months after brand closed three other sites
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A MAJOR car dealership group is to close a site despite announcing hefty profits and a recent dividend payment to shareholders.
US-based Group 1 Automotive appears to be taking decisive action after announcing the closure of their Volkswagen Telford dealership - only months after shutting down three other sites.
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A large VW dealership is set to close - following three other sites
Credit: Google
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However, it will remain as a Volkswagen-authorised repair and service centre
Credit: Google
According to a report by Car Dealer Magazine, a number of job losses are expected at the dealership as a result - which is to close its doors for the final time at the end of this month.
However, it is understood that the premises will remain operational as a Volkswagen-authorised repair and service centre.
Sources within Group 1 have suggested that the company intends to redeploy many affected staff - presumably to other locations.
However, Car Dealer Magazine reported that some employees have already started seeking alternative employment, with a number of them marking themselves as 'Open to Work' on LinkedIn.
The firm is reported to be consulting with impacted employees, as they aim to minimise job losses.
But with the closure of their sales operations, it is likely that there will be an overall reduction in roles at the site.
A spokesperson for Group 1 Automotive UK said: 'Our VW Telford site will continue operating as a standalone VW-authorised repair and service centre, and the retail sales operation will end on 31 May 2025.'
This year has been a significant one for Group 1, which announced profits of £162.9m for the first quarter.
As a result, investors are in line to receive a dividend of $0.50 (37p) per a share.
The company has already closed Volkswagen Wirral, Volkswagen Cheltenham, and Audi Hyde dealerships, which were previously owned by Inchcape.
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These sites were acquired as part of Group 1's £346m deal to purchase Inchcape's showrooms - effectively doubling the company's presence in the UK.
Following the acquisition, Group 1 began a review of its corporate support functions, resulting in several redundancies.
A spokesperson commented in November: 'Following the completion of the Inchcape Retail acquisition in August, we commenced a review of our corporate support functions.
'This review remains ongoing to ensure we are in a strong position to serve our customers and OEM partners effectively as we move forward as one enlarged business.
'We continue to support all colleagues as we move through this important transition period.'