A CAR dealership chain that slashed six UK locations has been saved by a rival firm.
Vauxhall axed sites in Portsmouth, St Albans, Hanworth, Oprington, Wolverhampton and Doncaster after failing to keep up with rising costs and lower demand.
A car dealership chain that slashed six UK locations has been saved by a rival firm[/caption]
A dealership in Edinburgh, Scotland, was also headed for the chop but may now be able to look forward to a more positive fate.
The British car brand’s competitor, Arnold Clark, has taken over the site so trading can continue.
An Arnold Clark spokesperson told Car Dealer Magazine: “Arnold Clark can confirm the takeover of the Evans Halshaw Vauxhall dealership in Edinburgh and will begin trading this week.”
It comes after American based franchise Lithia took over Vauxhall owner Evans Halshaw’s parent company Pendragon in February 2023.
Lithia has been implementing downsizing across the UK in a bid to save the brand.
Last April the firm axed 250 jobs after shuttering the CarStore used car supermarket brand.
A spokesperson for Evans Halshaw said: “The closure of these stores aligns with our wider strategic network plans, in conjunction with our OEMs and network partners.”
Elsewhere, Evans Halshaw closed down another dealership in Northwich.
The site situated on Chester Way, Cheshire, confirmed the shutters had come down on the site for the last time via its Facebook page, but no explanation was given.
Bizarrely, when Sun Motors called the Northwich branch’s telephone, the line was redirected to the Altrincham dealership.
This comes as the company announced it is closing one of its biggest UK factories, putting 1,000 jobs at risk.
The move has been slammed by furious MPs who say the closure of the 120-year-old hub is set to “massively impact the whole town”.
The Luton factory will close in April 2025.
The plans were first announced in November 2024 and the company blamed the UK’s switch to electric vehicles and the ZEV Mandate.
After the closure in Luton, the machinery will be transported to Ellesmere Port in Cheshire, where electric vans are already being produced.
Vauxhall owner Stellantis, the second-biggest maker of cars in Europe, has said it will invest £50million in Ellesmere.
The decision comes months after the multi-national firm, which also owns the likes of Citroen, Fiat, Jeep, Peugeot and Maserati, warned it may halt production in the UK.
Back in June, the company’s UK boss, Maria Grazia Davino, said: “Stellantis UK does not stop, but Stellantis production in the UK could stop”.
Now, in an update made during the Paris Motor Show, boss Carlos Tavares further urged ministers to relax the rules around EV production in a warning that potentially puts 2,500 workers at risk.
Speaking to Bloomberg TV he said: “We are now reaching a point where we have to make a decision, and that will happen in the next few weeks.”
This comes at a time when demand for electric cars across Europe is experiencing a downturn, with consumers seemingly hesitant to switch from combustion motors to EVs due to their high prices and concerns around charging infrastructure.
Meanwhile Donald Trump revealed his plan to introduce a 25 per cent tariff on cars and other good from the EU.
European autoshares fell after the move and EU boss Ursula von der Leyen described a “deep and disruptive transition ahead”.
Internation car sales faced a steep decline last year, with French and German manufacturers affected the worse.
According to an Allianz Trade report, European manufacturers had been edged out by US and Chinese rivals including Tesla.
It comes after American owners Lithia continue with a downsizing operation in the UK[/caption]
