Major UK car dealership closes down as huge chain flogs site as part of enormous ‘brand shift’
A CAR dealership has closed down as part of a “brand shift” with staff being moved over to another company.
The Sytner Group sold its former Manchester Carshop site to a used car company.
Shaun Lane, the CEO of Motor Range, announced the move on LinkedIn.
He said: “I’m pleased to announce that Motor Range has acquired Carshop Manchester (Sytner) as of today and will now operate two sites in the northwest.
“After months of hard work we welcome the current team of staff to the Motor Range family and we’re all excited to take this operation to the next level.
“It’s been a pleasure dealing with Sytner during the acquisition and Motor Range wishes them well for the future!
“The best Northwest used car supermarket just got better.”
A number of Carshop sites were marked for closure or sale last year.
Originally, the Manchester branch was rebranded as Sytner Select.
But now it’s being axed altogether, Car Dealer magazine reported.
Motor Range will run the site alongside its existing operation in Liverpool nearby.
A statement on the Sytner website reads: “After much consideration, we have made the decision to transfer Sytner Select Manchester to new ownership.
Why are so many car dealerships closing down?
By Summer Raemason
According to Business Rescue Expert there are multiple reasons why car dealerships are folding across the UK.
The first major factor is rising online car sales which are beating in-person sales at dealerships.
With an extensive range of comparison and second-hand sites to chose from, may car buyers don’t even step foot into a dealership anymore.
Secondly, the actual cost to physically run the sites has soared.
Rent, wages and energy bills have all been increasing for roughly the past five years, putting many out of pocket.
Car manufacturing across the globe was also hit by a semiconductor chip shortage in 2022 which made it difficult to produce new motors.
The high demand with limited supply created a backlog, which although has eased, is still having an impact on the industry.
A third reason for recent closures is the shift to electric cars.
They are becoming more popular, given the Government initiative to be Net Zero in 2050.
The industry is also affected when companies merge or are bought by rivals.
This may lead to some independent names falling victim to the ongoing spate of closures.
“We want to assure you that any outstanding orders will be processed as usual and service bookings will continue as planned.
“If you do have any questions or concerns, please email us at enquiries.select.manchester@sytner.co.uk and we will do our utmost to support you with a solution.
“May I take this opportunity to thank you for your loyalty to the team and to Sytner Select Manchester, we have thoroughly enjoyed looking after you.”
It comes after Britain’s biggest used car firm closed a site “completely out of the blue”.
The move by BCA left 200 workers in Oxfordshire in limbo.
Last year, Brymo Limited, which was known by its trading name Sentinel Cars, collapsed into administration.
The company used to hold a franchise with Volvo to supply new vehicles in the Greater London area.
But it went bust over a £7 million debt just two years after undergoing a major shake up.