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Group 1 Automotive has reversed its decision to terminate 10 Jaguar Land Rover dealerships in the UK, after reaching fresh terms with the carmaker.
The US-owned dealer group had previously confirmed it would walk away from all 10 of its JLR franchises, but revealed at its third-quarter results that it has now agreed to retain five of those sites following further talks with JLR.
In a statement accompanying the results, the company said it had struck an agreement with Jaguar Land Rover in the UK to revoke its earlier election to terminate the 10 franchise agreements, which had been due to take effect from August 2027. As a result, Group 1 will now retain and continue operating the five remaining UK JLR dealerships it had originally planned to give up.
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Group 1 UK chief executive Daniel McHenry told analysts on an earnings call that the group's JLR portfolio had been "a tale of two halves", with dealerships in the north of England struggling while those in the south, particularly around London, performed well.
He said discussions with Jaguar Land Rover over the planned disposals had led the manufacturer to express a wish for Group 1 to remain a partner. McHenry added that, taking into account new models due to launch under the brand, it made more sense financially for Group 1 to keep and continue selling through the stores rather than exit entirely.
Alongside the JLR update, Group 1 confirmed continued expansion of its UK network through its agreement with Chinese manufacturer Geely, having opened two of three planned locations so far, with the third due to open by December 2026.
The company also announced that, after the close of the current quarter, it had agreed a deal with Chinese automaker Chery to open an Omoda & Jaecoo dealership in the UK, also targeted for completion by December 2026.
Year to date, Group 1 has acquired and integrated three UK dealership operations, which are expected to generate combined annual revenues of around $135 million.
On trading performance, the group reported UK new vehicle retail sales of 15,984 units for the current quarter, up 1.9% from 15,687 units in the same period last year. On a same-store basis, UK new vehicle retail sales rose 8.1% to 15,467 units, compared with 14,308 units in the prior-year quarter.
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Source: Motor Trader
Earlier in this series: UK vehicle production rises sharply in September against cyber-hit comparison
