The UK’s second largest car dealership has shown it will abandon its used car brand, with “at least one” threatening to close.
The franchise, which operates more than 140 showrooms, reportedly said it would “change direction. “
The Sytner Group represents one of the leading brands across the country, in addition to BMW, Jaguar, Bugatti and Maserati.
However, it also operates a used car supermarket called CarShop.
With branches in major cities such as Bristol, Nottingham and Wolverhampton and an online site that hosts more than 3,000 listings, the subsidiary is a primary source of used engines for Britons.
But now, a report from Car Dealer Magazine says that CarShop is about to shrink particularly, with a portion potentially split.
Staff were reportedly informed that “at least one” site was going to be shut down, while a “minority” of the others could simply be sold.
The others will be renamed supermarkets under the name Sytner Select Approved Used.
The move comes amid significant adjustments in the industry, with main rival Cazoo on the brink of bankruptcy and Peter Vardy putting an end to the used Carz range.
Steve Young, chief executive of automotive company ICDP, called CarShop the “last man standing” in the industry.
He told Car Dealer, “I think there’s something in common that those independent retail outlets have consistently maximum prices and succeed or fail through their used car business, whereas a classic franchised outlet offers both new and used products, so the aftermarket incorporates some coverage against herbal threats.
“With the decline in used cars, which has been evident since the Covid era, for three or four years now, the availability of those cars is limited.
“Obviously, the source issues will be solved in the next 3 years, but it will take a long time to keep those maximum costs constant. “
A spokesperson for Sytner said the company is moving forward with its plans following a “strategic review. “
They added, “The organization is consulting with our CarShop team in relation to the potential rebranding of most of our CarShop locations to Sytner Select Approved Used Cars supermarkets.
“In addition, we can see that we are also in complex negotiations with an interested party to sell a minority of CarShop sites as an operating company, as well as potentially closing a site.
“As always, our priority will be to protect as many jobs as possible while ensuring the long-term success of the company. “
The move comes after the leading brokerage chain revealed it would close 16 locations and cut many jobs after being bought through a U. S. company.
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