FURTHER job losses are expected at Group 1 Automotive this year – as part of a wide-ranging restructuring programme.
The US-based dealership group – which boasts 254 showrooms across the US and UK – has indicated that more sites are likely to close across the UK in 2026.
Car Dealer Magazine has revealed that, although the company has just reported record revenues for 2025, the firm is expected to take additional steps to “optimise” its UK operations and cut costs.
And, most likely, this will involve more workforce changes and the planned closure of certain sites.
Indeed, Car Dealer Magazine quotes the company as planning “further workforce realignment and strategic closings of certain facilities”.
The car selling giant has already overseen a series of closures in recent times – shutting the BMW and Mini showrooms in Stansted and Hindhead last year as well as confirming it will shut all of its Jaguar Land Rover sites over the next two years.
More recently, it announced it would close a Volkswagen service centre only months after ending retail operations at the same location.
It also moved to shut a Toyota showroom in Burton.
The company began formally restructuring in October 2025 – carrying a significant cost.
In the fourth quarter alone it recorded $8.1m in UK restructuring charges, taking total UK restructuring charges for the year to $28.4m.
Financially, though, Group 1 says 2025 was a “record year” in terms of revenues, which rose 13.2% year on year to $22.6bn, with record performance cited across its main business lines.
It also highlighted record gross profits in parts and service and in finance and insurance (F&I).
However, despite higher sales, profitability weakened compared with 2024.
Full-year net income from continuing operations fell to $323.7m from $497.0m the year before, with the company pointing to $192.8m of non-cash asset impairment charges as a major factor.
Alongside the UK closures, Group 1 also closed a Chrysler Jeep Dodge Ram store in the US, while continuing to invest selectively elsewhere by acquiring what it described as high-performing Lexus and Acura dealerships in Fort Myers, plus Mercedes-Benz of South Austin and Mercedes-Benz of Buckhead.
Sun Motors has reached out to Group 1 for a comment.
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