Vauxhall ‘to close a THIRD of its dealers’ putting thousands out of work
New French owners will cull dealers, according to industry reports - but Ellesmere Port and Luton factories could be safe
A THIRD of Vauxhall's UK dealers could be axed under plans to cut spending by new French owners.
The dealer network is expected to shrink by 100 showrooms in the next year, according to reports by an industry magazine.
The move puts at risk 3,800 jobs with sales teams, mechanics and admin staff facing redundancy.
A salesman told Automotive Management that PSA Group was considering trimming Vauxhall's 324-strong dealer network.
The unnamed dealer revealed: “This is action that the brand needs to take quickly to maintain profitability in the network. It will happen within the next 12 months.”
Vauxhall said any closures within its network would be “part of the normal business cycle”, insisting that “none are related to the acquisition” by PSA.
PSA is aiming to cut around £1billion of expenditure from the Vauxhall and Opel business by 2020 to return the company to profit.
Around 650 voluntary redundancies have already been announced at Vauxhall's Ellesmore Port factory.
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But PSA Group has previously said the factories at Ellesmore Port and Luton are safe in the long term.
A Vauxhall spokesman said: "The Opel/Vauxhall PACE! plan is improving the efficiency of the business in all areas.
"Within the plan, the go-to-market strategy is being carefully reviewed, including the contractual framework with dealers."
