CarStore, a prominent car dealership in the UK, is closing 16 sites and cutting approximately 250 positions. Following its acquisition by US-based Lithia Motors, the company announced the decision to concentrate on its other two major branch networks, Evans Halshaw and Stratstone.
This development has resulted in approximately 300 employees facing redundancies. While 16 CarStore locations will close, four will be retained and refranchised, and seven CarStore pods will transition into Evans Halshaw Direct sites.
Lithia management stated, “The company anticipates eliminating roughly 250 roles across the UK. The majority of these losses will result from the closure of 16 CarStore locations, including seven warehouse-scale showrooms designed to reduce the cost of selling used vehicles through economies of scale.”
CarStore, Evans Halshaw, and Stratstone were previously subsidiaries of Pendragon, which sold the businesses to Lithia in September 2022 for £250 million. Evans Halshaw represents 10 automotive brands, including Citroen, Ford, Hyundai, Nissan, and Vauxhall, while Stratstone carries luxury and premium marques such as Aston Martin, BMW, Ferrari, Jaguar, and Mercedes-Benz.
In a separate development, Pendragon entered into a partnership with Lithia to implement its dealer management software, Pinewood, across Lithia’s 50 UK sites and expand into the North American market. The deal with Lithia, which operates over 340 dealerships in North America, aims to establish Pinewood’s software in the region and facilitate global growth.
Pendragon’s share price surged by 25% following the announcement of the Lithia deal, valuing the company at £322 million. Despite a potential takeover offer from Sweden’s Hedin Group in September 2022, valued at £400 million, Pendragon ultimately agreed to the acquisition by Lithia.
