Vauxhall will once again face job cuts, but this time, it’s on the retail side of things. Auto Express reported last Thursday that one-third of Vauxhall dealers will likely close in the next 12 months. The brand operates 324 dealers, which equates to roughly 100 dealers scheduled to close.
PSA Groupe did not comment on the news, but a Vauxhall spokesperson called the news “speculation.” The spokesperson added, “The Opel/Vauxhall PACE! plan [the strategy behind the takeover] is improving the efficiency of the business in all areas. Within the plan, the go-to-market strategy is being carefully reviewed, including the contractual framework with dealers.”
The report said roughly 38 people work at a Vauxhall dealer, which could leave 3,800 workers out of job. Vauxhall manufacturing has also been hit with two rounds of job losses as well.
Last October, Vauxhall announced 400 voluntary redundancies. This past January, Vauxhall announced another 250 job cuts between April and September 2018.
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By “[reviewing] the contractual framework with dealers”, which are mostly independent businesses, they might withdraw the contractual relationthip between Vauxhall and the dealers, but this would not necessarily result in a bankruptcy of the then ex-Vauxhall dealer and the unemployment of all workers there. They could continue as independent car repair shops.
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