Second-largest UK dealership confirms used car brand will shut down as ‘at least one’ site at risk of closure
THE UK’s second-largest car dealership has confirmed it will scrap its used car brand, with “at least one” site at risk of closure.
The franchise, which handles over 140 showrooms, reportedly told staff it would be “shifting its focus”.
Sytner Group represents a range of big-name manufactures across the nation, including BMW, Jaguar, Bugatti and Maserati.
However, it also operates a used car supermarket under the name CarShop.
With branches in major cities including Bristol, Nottingham and Wolverhampton and a website hosting over 3,000 listings the subsidiary is a major source of affordable second-hand motors for Brits.
Now, though, a report from Car Dealer Magazine has revealed that CarShop is set to be heavily cut down, with part of it potentially spun off.
Staff were reportedly told yesterday that “at least one” site is set to be closed down, while a “minority” of others could be sold.
The rest are expected to be rebranded as superstores under the Sytner Select Approved Used banner.
The move comes amid significant changes in the sector, with major rival Cazoo teetering on the edge of bankruptcy and Peter Vardy winding up the Carz second-hand range.
Steve Young, managing director of motoring research firm ICDP, dubbed CarShop the “last man standing” in the sector.
He told Car Dealer: “I think there is a common thread in that these standalone stores are relatively high fixed-cost and succeed-or-fail on the back of their used car business, whereas a traditional franchised dealer point has new, used and aftersales so has some natural risk-hedging built in.
“With the dip in three-to-four-year-old used cars now working through from Covid times, the availability on these cars is restricted.
“Clearly the supply issues will work through over the next three years, but that’s a long time to carry those high fixed costs.”
A spokesperson for Sytner confirmed that it was going ahead with the plans following a “strategic review”.
They added: “The group is consulting with our CarShop team regarding the potential rebranding of the majority of our CarShop locations, to become Sytner Select Approved Used Cars superstores.
“In addition, we can confirm that we are also in advanced negotiations with an interested party to sell a minority of the CarShop locations as a going concern, as well as potentially closing one location.
“Our priority as always, will be to protect as many jobs as possible whilst ensuring that the long term future success of the business is secured.”
It comes after another major dealership chain revealed that it would close 16 sites and cut hundreds of jobs after being taken over by a US firm.