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Jobs threat at Vauxhall car dealerships

Vauxhall owner PSA Group is preparing to unveil a widespread cost-cutting plan that threatens thousands of jobs at its car dealerships across Britain.
The company plans to consolidate hundreds of franchised outlets in ­response to falling sales, and industry sources said the move could be ­unveiled as early as Monday.
PSA is thought to be considering taking the axe to as many as a third of its 300-plus Vauxhall dealerships in the UK.
The company may also consolidate marques into single sites. The move is in response to last year’s sales collapse, with Vauxhall 22pc lower, Citroen off 18pc and Peugeot down 17pc, which contrasts with just a 5.7pc fall across the wider UK market. 
Jobs threat at Vauxhall car dealerships

Sales of Vauxhalls suffered a 22pc drop last year

Credit:
Dave Thompson
A spokesman for Vauxhall declined to comment on specifics but added: “There are opportunities for retailers to change: the market is changing, the way people buy cars is changing and the retail network is changing.”
As PSA does not own the dealers it cannot actually close them. Sources close to the company suggest it may ­offer franchise holders incentives to give up under-performing dealerships.
A meeting between PSA and dealership bosses is scheduled for early May to detail future strategy. 
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