Vauxhall confirms cut in dealer numbers

Vauxhall confirms cut in dealer numbers, with the potential for the British brand to share sites with Peugeot, Citroen and DS

vauxhall dealership

Vauxhall is to terminate all its dealer contracts from April 2019 and will re-franchise its entire dealership network, with some dealers facing cuts. 

Vauxhall boss Stephen Norman said the company is to give its 326 dealers that are run by 93 groups, and which employ 12,000 people, a two-year notice on April 30th.

Though the brand expects the ‘majority’ of dealers will retain their franchises, the boss didn’t rule out cuts. However, Norman said the company will continue to have the second biggest network from 2019 onwards, meaning the brand will operate at least 200 franchises.

• Jaguar Land Rover cuts 1,000 UK jobs

According to figures from the Society of Motor Manufacturers and Traders Vauxhall has seen a 18.28 per cent fall in sales so far this year, with 54,535 cars registered by March.

Norman also said that he doesn’t expect any job losses as a result of the re-franchising: “I do not expect anyone to lose their jobs as a result of this – I do not expect there to be a reduction in retail outlets as a result of these changes. Those retailers [who lose their franchises] will take on other businesses,” he commented.

With Vauxhall and Opel now under PSA ownership, Norman also said that it would be inevitable that Vauxhall dealers would be sharing facilities with Peugeot, Citroen and DS outlets. The same re-franchising process will be going on across the whole of Europe with the aim of improving dealer profitability.

“Re-franchising is not something that doesn’t happen at regular instances within the motor industry,” said Norman. “It last happened with Vauxhall Opel in 2013.”

“Conditions are changing, competition is more ferocious and different methods of consumption, which includes online, are changing the way people buy cars.”

Norman said that a decision would be made in the third quarter of 2018 as to which dealers would be getting new contracts, with those contracts and any necessary terminations coming into effect on 30th April 2020.

For more news on Vauxhall, including the recent announcement on the future of its Luton manufacturing plant, visit our dedicated news and reviews page.

Recommended

Stellantis confirms Ellesmere Port’s future as Vauxhall, Peugeot and Citroen electric van factory
Ellesmere Port - Stellantis
Vauxhall

Stellantis confirms Ellesmere Port’s future as Vauxhall, Peugeot and Citroen electric van factory

Vauxhall’s new parent company, Stellantis, will spend £100 million to convert former Astra production line over to electric vans
6 Jul 2021
New Opel Manta GSe ElektroMOD gets 145bhp and 124-mile range
Opel Manta GSe ElektroMOD - front
Vauxhall

New Opel Manta GSe ElektroMOD gets 145bhp and 124-mile range

Specs for the all-electric Opel Manta GSe ElektroMOD have been revealed, although the German brand has no plans to put it into production
18 May 2021

Most Popular

Land Rover unveils limited-run Defender Trophy Edition
Land Rover unveils limited-run Defender Trophy Edition - front
Land Rover Defender

Land Rover unveils limited-run Defender Trophy Edition

Just 220 examples will be built to honour past Camel Trophy Land Rovers, all of which have been reserved for the North American market
30 Jul 2021
New 2021 Volkswagen Taigo coupe-SUV breaks cover
Volkswagen Taigo R-Line - front
Volkswagen Taigo

New 2021 Volkswagen Taigo coupe-SUV breaks cover

The new VW Taigo is a sportier, more aggressive looking version of the brand’s T-Cross and is aimed at lifestyle buyers
29 Jul 2021
New 2021 Kia EV6 boasts up to 328 miles of range
Kia EV6 - front
Kia EV6

New 2021 Kia EV6 boasts up to 328 miles of range

Kia reveals more specs for its bespoke electric car, with the EV6 offering long range and an 18-minute 80 per cent rapid recharge time
21 Jul 2021