Vauxhall thins the network of dealers

Reuters

Vauxhall plans to reduce its dealership total to about a third, as consumers change the way people buy cars.

The brand, which was bought by Peugeot’s parent company PSA last year, expects to reduce the total from 326 to about 200.

The move is part of a PSA in the car to return to the loss at Vauxhall and Opel companies to profitability.

Vauxhall dropped by over a fifth last year, and by far the worst of the market decline of 5.7%.

Stephen Norman, director of Vauxhall, said that the sister of the Opel brand, “does not require, as many retail stores as brands have currently”.

The competition for car sales had become more aggressive over the past five years, he said, and more consumers are required to buy car online in the future.

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Mr. Norman did not expect the changes to result in any job losses among the 12,000 people who work for Vauxhall dealers. “No one gets fired,” he said.

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The former PSA executive has been appointed as Vauxhall boss in the month of January, with the task of resuscitating the brand.

Vauxhall started to inform the 93 groups that own the dealer network on Monday. Some will be invited to renew their franchise.

Opel also go through a similar process on the continent, but it was not clear how many will be interested.

Vauxhall dealers who survive are destined to become more closely integrated with the PSA of the other brands, which include the Citroen and Peugeot.

Vauxhall sold 195,000 cars in the UK last year, reducing its market share from 9.3% to 7.7%.

Sales in the first three months of this year fell by 18%.