MAJOR car dealership brand Group 1 Automotive is planning to ditch all of its Jaguar Land Rover franchises in the UK.
According to Car Dealer Mag, the group’s 10 JLR stores will be axed within the next two years as they look to “focus on the right areas for growth and productivity”.
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Car dealership brand Group 1 Automotive is planning to ditch all of its Jaguar Land Rover franchises in the UKCredit: Alamy
Reports claim the group’s 10 JLR stores will be axed within the next two yearsCredit: AFP
A memo from the brand’s UK CEO, Mark Raban, confirms that its JLR sites will be phased out gradually until 2027, as the group seeks to ‘sell or relinquish’ all of them.
Group 1, which insists the move isn’t a reflection on JLR’s brand and is just a strategic business decision, currently has JLR sites in Guildford, North West London, Watford, Sidcup, Southend, Derby, Kings Lynn, Norwich, Chester and Preston.
Raban, who also revealed two other non-JLR sites are closing, Toyota Burton and Assured Billericay, told staff: “We are continually reviewing how best to optimise our performance in an increasingly dynamic market.
“This includes evaluating our strategic options to ensure our portfolio and operations are aligned with the long-term growth ambitions of our business.
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“As part of this, we have informed our OEM partner, JLR, of our intention to sell or relinquish our JLR franchise operations in the UK.
“We also continue to work with other OEM partners to evaluate our portfolio. In this regard, we have today announced our intention to close Toyota Burton and Group 1 Assured Billericay.
“The transition with JLR will be phased over the next two years. In the meantime, each store will continue to trade and operate as normal.
“I want to emphasise our continued respect for JLR, its reputation, and the quality of its vehicles.
“This decision is not a reflection on the brand itself, but rather a strategic move to ensure we are focusing on the right areas for growth and productivity across our wider group.
“I recognise that this news may be unsettling for those directly affected, and I ask everyone to be mindful of the impact this may have on our colleagues.”
Job losses, though, should be kept to a minimum, as Raban hinted that the JLR sites could be replaced by new brand partners.
He added: “Importantly, this announcement does not signal a reduction in our brand portfolio.
“We remain focused on identifying new opportunities for strategic growth in the UK over the long term.
“Thank you for your continued dedication and hard work. Your contribution remains vital to our success, and we are confident that these changes will help position us strongly for the future.”
The timing is awkward for JLR, coming shortly after a cyberattack that halted production at its factories for five weeks and is estimated to have cost the UK around £2bn.
It is not, however, being suggested this influenced Group 1’s assessment of risk and profitability in JLR operations.
Patrick McGillycuddy, JLR’s managing director, said: “We are aware of Group 1’s forthcoming portfolio changes.
“While we do not comment on the commercial decisions of our partners, we remain committed to ensuring continuity of service for our clients and representation of our four iconic brands.
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“We are actively working with Group 1 to explore opportunities for these high-potential locations and to support a smooth transition.”
For the coming period, the plan appears to be that each store will continue trading as normal during the phased transition.
The group is seeking to ‘sell or relinquish’ all of their JLR sites from now to 2027Credit: AFP
