Pendragon buys Dixon dealerships

Tuesday, August 07, 2007

Largest car dealer gets bigger
It buys 19 dealerships – but 27 close
Car owners must keep up finance payments

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Britain's largest car dealer, Pendragon, has further expanded its influence after acquiring 19 dealerships from troubled rival Dixon.

Last month, Dixon handed over control of its dealerships to administrators. Those acquired by Pendragon will remain open, but another 27 have been closed as no buyers have come forward.

Pendragon will rebrand its new sites as Evans Halshaw and start to run them immediately, under licence from the administrators while the paperwork to complete the sale is finalised.

'In April we said that the current market conditions would offer Pendragon opportunities to make attractive acquisitions,' said Trevor Finn, Pendragon's chief executive. 'These dealerships are high quality assets.'

Pendragon currently controls around seven per cent of the UK's car market, but its latest growth may not be good news for car buyers. Industry experts are predicting that car dealerships will eventually come under the control of a small number of large companies, reducing competition.

The administrators have also received bids for Dixon's five Vauxhall and 12 Nissan dealerships. Its Peugeot dealerships have not attracted bids, but Peugeot has ruled out buying them through its Robins & Day group. There have been no bids reported for Dixon's seven Renault dealerships, either.

Despite Dixon being in administration, anyone who has bought on finance from one of its dealerships will continue to have to make payments as the administrators continue to run the company.

Sites acquired by Pendragon
Citroen Bradford, Doncaster, Hull and Rotherham
Ford Bury and Rotherham
Kia Rotherham
Nissan Doncaster, Hull and York
Peugeot Doncaster, Mansfield and Wakefield
Renault Hull and York
Vauxhall Beverley, Horsforth, Hull east and Hull west