A car dealer with more than 250 locations is set to close more branches in 2026 in a major blow for workers and customers.
A major car dealership is set to make a series of closures in 2026 (Image: Getty)
A major car dealer is set to shut down more branches across the UK, with jobs on the line in the latest dealership closure and a major blow to the motoring industry. American firm Group 1 Automotive is set to undertake a massive restructuring programme in a bid to cut costs.
Group 1 has confirmed that the move will lead to further workforce realignment and strategic closings of certain facilities. This is set to include shutting the doors at certain UK branches, following on from store closures last year.
Group 1 will ditch its 10 JLR dealerships (Image: Getty)
Group 1 said: “The company expects to take additional actions in 2026 to further optimise our operations and reduce costs.”
Back in 2025, Group 1 decided to shut down its BMW and Mini showrooms located in Stansted and Hindhead. Last year, Group 1 also confirmed plans to ditch all 10 of its Jaguar Land Rover dealerships within the next two years, meaning some will close in 2026. However, JLR sites could still be replaced by new brand partners which would ensure job losses are kept to a minimum.
Last month, Group 1 said it would also shut down one of its VW service centres, while also revealing a Toyota showroom in Burton would also get the axe. The news is somewhat of a surprise after Group 1 reported 2025 revenues of $22.6 billion, a 13.2% increase on 2024.
Group 1 has also expanded into new territories, with sites in the Midlands and the North West of England and Wales. The brand has also added a range of manufacturers to its portfolio in recent years despite ending their relationship with JLR.
Daryl Kenningham, Group 1’s president and CEO said: “The fourth quarter capped off a record year for Group 1. We achieved record revenues across all of our major business lines and record gross profits in parts and service and F&I, showing the continued strength and resilience of our diversified business model and our relentless focus on operational excellence.”
Last year, Daryl stressed the decision to part ways with JLR was down to a “challenging” UK market and concerns over electric vehicles.
He said: “The UK market remains challenging, with softer industry volumes and continued BEV-related margin pressure. We are taking steps to strengthen our U.K. portfolio, and we continue restructuring efforts to make the business more efficient.
“With our portfolio optimization efforts, including leveraging Aftersales and F&I as growth levers, we will be positioned to emerge stronger as the market stabilizes.”
Patrick McGillycuddy, Managing Director, JLR UK told Express.co.uk: “We are aware of Group 1’s forthcoming portfolio changes. While we do not comment on the commercial decisions of our partners, we remain committed to ensuring continuity of service for our clients and representation of our four iconic brands. We are actively working with Group 1 to explore opportunities for these high-potential locations and to support a smooth transition.”
