Vauxhall Expected to Slash Dealership Count in U.K. by One-Third

PSA Group’s Vauxhall unit plans to eventually shrink its dealer network in the U.S. from 300 outlets to 200, the head of a dealer chain tells Reuters.

Vauxhall’s sales in the U.K. plummeted 22% last year in a market that contracted 6%, according to the Society of Motor Manufacturers and Traders. It was the market’s first year-on-year decline in six years but Vauxhall’s second year of shrinking volume.

Reuters’ source says Vauxhall has told dealers about its plan, which would reduce costs and bolster the profitability of the brand’s remaining retailers. The carmaker says no decisions have been made.