Caffyns will exit from selling new Vauxhall cars in Kent from June 2013 saying the franchise is too expensive to operate.
The south east based group was rated 46th of 200 by Motor Trader and has sales and servicing sites in Ashford and Tunbridge wells. “Our freehold facilities at Ashford and Tunbridge Wells offer great potential for development having scale, excellent locations and strong markets. Already, one of our core partners has supported our plans for future investment.
The multi-franchise listed group also represents Ford, Audi, Volvo, VW, Land Rover, Jaguar, Chevrolet and Skoda and has plans to develop its premium business.
“In line with our stated strategy of developing our core business with premium and premium-volume partners, some months ago Caffyns indicated to Vauxhall Motors that it was unwilling to commit the high levels of capital needed to operate the franchise,” said a statement issued by Caffyns this morning (12 July 2011).
Chief executive Simon Caffyns said the group plans to redevelop two of the affected sites hinting that one of its existing franchise partners has expressed an interest in them.
“Vauxhall has a strong product range and solid customer base. However, the brand no longer fits with our strategy,” he said.
Caffyns announced preliminary results for the year to 31 March 2011 with turnover up 6.4 per cent to £201.5m.
Profits fell to £268,000 compared to £970,000 last time due to restructuring costs associated with the closure of seven businesses, including Peugeot, Citroen, Chevrolet and Nissan outlets and two bodyshops.
Taken from Motor Trader Magazine
