Leading UK Car Dealership to Shut Down 254 Showrooms
Group 1 Automotive, a prominent US-based car dealership, is set to close 254 showrooms across the UK. This decision follows a remarkable financial year in 2025, marked by significant revenue and profit increases.
Strategic Closure of UK Showrooms
The announcement comes in the wake of Group 1’s acquisition of Inchcape UK, a deal valued at £346 million completed in April 2024. This merger added 54 additional dealerships to Group 1, positioning the company among the top five motor retailers in the UK.
Record Financial Performance in 2025
- Revenues: $22.6 billion, representing a 13.2% growth from the previous year.
- Gross Profits: Reached a record $3.6 billion, an increase of 11.8% year-on-year.
- Parts and Service Profits: Grew by 15.9%, significantly boosting overall profitability.
Daryl Kenningham, the president and CEO of Group 1, emphasized the company’s commitment to operational excellence. He stated that the fourth quarter capped off a record year, with strong performance across all business lines.
Future Plans for UK Operations
Looking ahead, Group 1 plans to undertake further measures in 2026 to optimize operations and cut costs. Kenningham noted that the company is experiencing challenges in the UK market, specifically related to electric vehicle (EV) adoption and softer industry volumes.
Market Challenges and Restructuring Efforts
The decision to exit partnerships with certain brands, including JLR, reflects the tough market dynamics. Kenningham remarked on the continued pressure from battery electric vehicles (BEVs) on margins.
- Focus on strengthening the UK portfolio.
- Restructuring to enhance business efficiency.
- Utilizing aftersales and finance and insurance as growth opportunities.
Group 1 Automotive aims to stabilize and emerge stronger amidst these challenges, continuing its commitment to operational efficiency and market adaptation.
