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Monday, 19 February 2007 |
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James Dallas, deputy editor
The relentless process of consolidation in the UK's retail motor industry is graphically illustrated in Pendragon's annual results for 2006.
The giant dealer group, which is almost double the size of its nearest rival, generated turnover of more than £5bn from its vast network of almost 400 outlets. Pendragon said it had now absorbed the Reg Vardy operation, which it acquired early in 2006, having snapped up another top five group, CD Bramall, the previous year.
The purchase of Reg Vardy appears all the more astute with the new car market continuing to struggle. The dealerships which joined Pendragon with Vardy have out performed its existing sites due to their strength in the used car sector, an area Pendragon has earmarked for growth. Ominously the group said the retail market remained fragmented, suggesting further expansion is on the cards.
Meanwhile, with the majority of dealers struggling against tight margins they could certainly do with someone to fight their corner. However, it is debatable whether Clarkslegal (see facing story) can offer any services not already provided by the RMIF.
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