One-third of Vauxhall dealers in the uk could be closed as part of an aggressive efficiency drive the strategy traced by the mark of the new parent company, the PSA Group.
An anonymous source has told Automotive Management that more than 100 of the company 324 uk retailers could go within a year, which puts 3,800 jobs at risk.
“PSA already has implemented savage cuts in its manufacturing operations, and it appears that it will continue in the retail trade,” the unnamed distributor, she said. “A third of the dealers go away.”
Vauxhall said the Bus that the claims are “pure speculation”. Said in a statement that “The Opel/Vauxhall RHYTHM! plan of improvement of the efficiency of the company in all its areas.
“Within the plan, the market strategy is to be carefully reviewed, including the contractual framework with the distributors.”
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The source said that the dealer network was now running with high inefficiencies because it is set up to handle a much larger volume, with sales having peaked at more than 330,000 in 2007. In 2017, Vauxhall sold 195,137 vehicles.
“Last year, I believe that the network ended at around 0.35% of return on sales. You can’t sustain for a long time. Without the volume, there are too many sites,” the source told the morning. “If this is a crisis, it is a moot point, but either way, many Vauxhall dealers will already be saying: “enough is enough’.”
Since the acquisition of Vauxhall and its German sister brand Opel at the end of last year, the PSA has been particularly vigorous in its attempts to reduce the costs of the uk-only brand.
Vauxhall recently offered 250 members of its Ellesmere Port staff voluntary redundancies in an attempt to reduce costs and improve efficiency in the factory. This followed the first wave of cuts in October of last year, with the total number of jobs Vauxhall plans to have it removed from your Cheshire site September 2018 amounts to eur 650.
PSA strategy aims to return the Vauxhall and Opel to profit by 2020.
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