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US dealer giant Group 1 is pushing ahead with the five-phase restructuring of its UK business and the integration of Inchcape which it bought last year.
Last year, in phases one and two, it cut costs by £15m with a reduction of over 200 jobs achieved through cuts made in the executive team and senior franchise oversight functions, the elimination of duplicated corporate functions and the closure of Inchcape Bravoauto used car supermarkets.
The restructuring continues into 2025 in phases three to five with a plan to reduce headcount and costs by a further £22m to be completed by June.
It has targeted job cuts of 70 in business functions, saving £5m due for completion this month.
A further 300 jobs are to go at retail level saving between £8-£12m in an “alignment of store payroll” to agreed productivity levels to be in place by June.
These cuts will also “offset additional employer taxes” resulting from the last UK Government budget.
It is also aiming for £5m savings in demonstrators and fleet, £5m in procurement and up to £2m in store closures. The UK restructuring update was given to analysts today.
Last month Motor Trader reported Group 1’s US and UK operations turning in a strong performance in 2024 with turnover up 11.5% to $19.9bn (£16bn) and gross profit up 7.3% to $3.2bn.
In the UK turnover turnover and profitability surged on the back of its acquisition of the Inchcape UK arm with turnover up 36% to $4.16bn and gross profits up 36.6% to $560.1m.
The Inchcape deal added 54 dealerships to the group. The integration of Inchcape is taking place alongside a wider restructuring in the UK with job cuts, some site closures and the integrations of systems, including its dealer management systems (DMS).