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Group 1 UK is set to cut jobs by 10% in the first quarter of 2024 in a drive to reduce costs.
The company confirmed the move as it announced fully ear results for the US parent and UK subsidiary.
It said the U.K. delivered record current year revenues of $3.1b, driven by all lines of service and record gross profit, driven by new vehicles and parts and service.
But, like other dealer groups, it experienced challenges in the final quarter of 2023 with used car values falling.
“We experienced challenges in our U.K. operations during the current quarter with used vehicles and recognize we have some work ahead of us to bring our costs back in-line with recent trends,” said Daryl Kenningham, Group 1 president and chief executive officer.
“We are focused on reducing costs in the UK in the first quarter of 2024, with an expectation of reducing our UK headcount by approximately 10%,” he said.
Group 1 said that Selling, General and Administrative (SG&A) expenses as a percentage of gross profit increased 7.5% in the U.K.
“During the current quarter, our U.K. operations began a rebalancing of our used vehicle inventory in response to market changes, which generated losses on used vehicle wholesale sales in the current quarter, which are expected to continue into the quarterly period ended March 31, 2024.
“Despite the current quarter challenges, our UK team, delivered record current year revenues, driven by all lines of service and record gross profit, driven by new vehicles and parts and service.