Shift into Gear

The US owner of CarStore, Lithia Motors, has unveiled plans to restructure its UK operations, including the closure of 16 sites and the reduction of 250 jobs. This decision comes as part of a strategic realignment following the acquisition of CarStore, Evans Halshaw, and Stratstone from Pendragon last year, solidifying Lithia's presence in the UK automotive market.

Pendragon, previously employing some 5,500 people in the UK, underwent significant changes following the £397 million takeover by Lithia Motors, which was finalized in February 2024. Lithia Motors, known for its extensive dealership network in North America, including Jardine Motors Group, recognized the need for consolidation and optimization within its newly acquired assets.

As part of our strategic restructuring efforts, nine CarStore locations and seven CarStore pods will cease operations this quarter to optimize efficiency and concentrate resources on flagship brands. Nevertheless, four CarStore sites will continue under new franchise ownership, marking an expansion of Lithia's retail footprint through partnerships with three established automakers. Furthermore, seven CarStore pods will be converted into Evans Halshaw Direct sites, in line with Lithia's growth and efficiency objectives.

In light of these changes, Lithia Motors has initiated consultations with affected staff regarding potential redundancies. A spokesman for Lithia emphasized the company's commitment to supporting its colleagues through this transition, ensuring that they are fully informed about the impact of these decisions.

Neil Williamson, regional president of Lithia UK, shares his bright outlook for the future, affirming, "The integration of Pendragon and Jardine Motors Group into the Lithia and Driveway family highlights the powerful synergies between these esteemed entities. Our dedication lies in maximizing growth efficiency as we progress through 2024."