Group 1 Automotive, an American car dealership, is planning significant closures across the United Kingdom, which will affect 254 showrooms and result in job cuts. The company aims to implement a restructuring program to reduce operational costs.
Details of the UK Car Dealership Closure
The planned closures follow previous decisions made by Group 1. In 2025, the company shut down its BMW and Mini locations in Stansted and Hindhead. Additionally, it has announced plans to close all 10 Jaguar Land Rover (JLR) dealerships within the next two years.
- JLR closings may occur as early as 2026.
- Last month, a VW service center was also announced for closure.
- A Toyota showroom in Burton will be affected as well.
Company Financial Outlook
Despite these closures, Group 1 reported impressive revenue figures for 2025, totaling $22.6 billion, an increase of 13.2% compared to 2024. The company has even expanded its operations into various regions, including the Midlands and North West England.
Reasons Behind the Closures
Group 1’s president and CEO, Daryl Kenningham, has attributed the need for restructuring to challenges in the UK market. Concerns over electric vehicle margins and softer industry volumes have prompted this comprehensive review of operations. Kenningham stated, “The UK market remains challenging, with softer industry volumes and continued BEV-related margin pressure.”
Future Strategies
Group 1 is focusing on optimizing its portfolio and plans to leverage aftersales and finance and insurance (F&I) services as key growth areas. Adjustments aim to ensure that the company emerges robustly as market conditions stabilize.
Response from Jaguar Land Rover
In response to these developments, Patrick McGillycuddy, the Managing Director of JLR UK, acknowledged the impending changes at Group 1. He emphasized their commitment to client service and expressed interest in exploring alternative opportunities for affected locations.
The upcoming dealership closures will significantly impact the automotive landscape in the UK, underlining the industry’s ongoing challenges amidst evolving market conditions.
