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Large dealer groups impacted by Vauxhall shake-up

Some of the largest listed dealer groups are set to feature prominently in the Vauxhall shake-up of its 323-outlet UK dealer network.

Pendragon, which is rated two in the Motor Trader Top 200 with annual turnover of £4.5bn, has 32 Vauxhall dealerships across the UK. Vauxhall is its second largest brand in terms of outlets behind Ford on 39 dealerships.

Lookers, rated three in the Top 200 with annual turnover of £4.3bn has 14 Vauxhall businesses and Vertu rated six in the Top 200 with annual turnover of £2.8bn, has 14.

The big dealer groups will work had to build their relationship with PSA. Prior to the announcement of the PSA takeover of Vauxhall and GM, Vertu welcomed the move and the impact the enlarged business would have on its business.

“The combined PSA business will be a very important, scaled manufacturer partner to the group.

“PSA has undergone a major turnaround in its profitability in recent years which contrasts with the losses made by Opel/Vauxhall over a long period.

“The proposed acquisition is viewed positively by the board in increasing the ability of the enlarged PSA business to invest in new products and technologies which are so vital to the long-term success of franchised retailers.”

Cox Automotive COO Martin Forbes said the move by Vauxhall was not unexpected and said large dealer groups would play a growing role in the network shake-up.

“At this point it is too early to measure the impact of this decision on Vauxhall dealerships.

“The market is shifting at great speed making it difficult to confidently predict where it will be in two years, once these changes have come into play. However, we expect to see a continuation of dealership consolidation and a growing appetite for manufacturers to work with larger groups and reduce contracts.”


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