A HUGE UK car dealership group has begun a formal consultation process with employees ahead of potential closure of three sites.
Vertu, which operates a chain of franchised dealerships across the UK, could be closing three outlets in the South West – Launceston Peugeot, Barnstaple Peugeot and Barnstaple Volvo.
According to the North Devon Gazette, the industry giant has been reviewing their financial performances – leading them to consider closing the sites as early as February 6.
And that move places staff at the affected locations in a period of uncertainty as the company assesses whether to proceed with shutting the doors for good.
In a statement published by Car Dealer Magazine, a spokesman for Vertu said: “We have carefully reviewed the financial viability of our Launceston Peugeot, Barnstaple Peugeot, and Barnstaple Volvo dealerships, and made the difficult decision to enter consultation with our colleagues at these locations, with a view to potentially closing them in early February.
“Customers can continue to receive the high-quality service from these locations until we agree the outcome of this consultation process, or from our other dealerships in the area.”
These dealerships were acquired in 2022 as part of Vertu’s takeover of Helston Garages – a significant expansion that brought 28 franchised sites into its network across the South West.
But since completing the deal, Vertu has been streamlining its operations.
This has led to some closures, including the BMW dealer in Barnstaple just last year.
The possible new closures suggest the company is continuing to focus on keeping sites that are busy and profitable, while letting go of those that are not.
If the closures go ahead, the implications for local customers are substantial.
If these three sites do close, local customers will have to travel further for sales, servicing and warranty work.
For example, Volvo and Peugeot owners in Barnstaple would need to go to Exeter – roughly a 90‑mile round trip.
And Peugeot customers in Launceston would need to go to Plymouth, around a 60‑mile round trip.
The news is worse, though, for the people working at the dealerships.
Some staff might be offered roles at other Vertu sites, but there is a real risk of job losses if the closures go ahead.
Ultimately, the current consultation period is when the company listens to staff, looks at options and decides what to do.
This comes as many franchised dealer sites have shut over the past year – driven by higher costs, changes in how people buy cars, including more online sales, and manufacturers reshaping their dealer networks.
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