Falling sales cost dealer £30 million
11 November 2008
- Britain's largest dealer group expects record losses
- Plans to close 75 dealerships and axe 2500 jobs
- Share price plummets
Pendragon, the UK’s largest car dealer group, will close 75 dealerships and make 2500 people redundant after announcing that it expects to make a loss of £30 million this year.
The group has reported a 12% drop in car sales over the previous year, with registrations falling by 21.4% in the past three months.
The 2500 job cuts that Pendragon expect to make represent around 20% of its workforce.
The company is now implementing cost-cutting initiatives in order to save £60 million. It is also selling off some of its assets, including Pinewood, its dealer and manufacturer-related software subsidiary, for an estimated £60 million.
Pendragon’s share price dropped to 6p a share following the announcement, compared with 60p at the start of the year.
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