Vertu Motors cuts jobs after issuing profit warning
Vertu Motors has said it is cutting jobs and closing dealerships after announcing an unexpected profit warning.
The group has nearly 200 retail sites around the UK operating under the Bristol Street Motors, Vertu and Macklin Motors brands, employing around 8,000 people.
It has said it is taking these cost-cutting measures after its profits had been hit during 2024 by steep industry-wide discounts to meet ZEV Mandate target. It has also blamed tax hikes announced in last year’s Budget which will add £10m to group costs from April.
Meanwhile, the group has also said it will also bring all its brands under the Vertu name to reduce costs.
Vertu Motors cuts jobs
The news comes after Vertu Motors announced in December that it was closing its BMW dealership in Dorchester, which employed 12 people. It said the business was no longer viable due to rising costs.
Robert Forrester, Vertu’s chief executive, said: “The group’s high margin aftersales business is performing strongly. However, the government’s ZEV Mandate is causing severe disruption to the UK new car market, and the consumer environment is subdued.”
“The government and the industry need to get together to address the root cause of the issues to allow the automotive sector in the UK to return to its traditional role of stimulating economic growth, which is a catalyst for employment.”
