Falling sales cost dealer 30 million

* Britain's largest dealer group expects record losses * Plans to close 75 dealerships and axe 2500 jobs * Share price plummets...

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What Car? Staff
11 November 2008

Falling sales cost dealer 30 million

Pendragon, the UKs 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.

Pendragons share price dropped to 6p a share following the announcement, compared with 60p at the start of the year.