Bosses at Jaguar Land Rover have upset AM100 dealer group JCT600 by removing its Doncaster Jaguar Land Rover dealership from the OEM’s network plan.
JLR’s strategic review of its UK retail network is leading to the dealership’s closure at the end of March. Some 40 jobs are at risk but JCT600 said it is working hard to find alternative roles for as many as possible at its other dealerships.
It’s less than six years since JCT600 bought the business from Pendragon with JLR’s blessing – it was JCT600’s first and only JLR business, and at the time its directors described it as “a perfect fit” and an “obvious missing link in our portfolio“.
After revealing the imminent closure, executive chairman John Tordoff said: “Naturally, we are extremely disappointed with JLR’s decision to close our business in Doncaster which, following our purchase in 2018, we have worked hard to turn into a successful operation. Doncaster is a thriving city and our other businesses in the area, Audi Doncaster, Mercedes-Benz of Doncaster and JCT600 Approved Used, all perform exceptionally well.
“Unfortunately, the situation is totally out of our control and so our focus now is to look after all customers and colleagues who are affected.”
Having announced its ‘house of brands’ strategy last year, JLR is implementing agency model contracts and redefining its retail network, just over a decade since the ARCH investment requirements began.
JCT600 is investing in its remaining businesses in Doncaster. In late 2023 it acquired a seven-acre site on Wheatley Hall Road and will relocate its Audi Doncaster business to that site in 2025.
It has also recently approved plans to redevelop its Mercedes-Benz Doncaster and JCT600 Approved Used Centre on the same road.
Tordoff added: “We are fully committed to the city of Doncaster and are excited with our ongoing investment plans which will all come together in the next two years. Our Mercedes-Benz business will temporarily move into the current JLR premises once they are empty which will enable us to redevelop the Mercedes-Benz premises quickly and with little or no inconvenience for customers or colleagues. By the time that project is finished, we should be in a position to start work on our new Audi Doncaster dealership.
“Our total investment in these projects will be in excess of £15m and we are confident it will be money well spent. The city of Doncaster has been very kind to JCT600 since we opened our first business there over 20 years ago.”
The Bradford-based AM100 dealer group also represents a number of luxury car marques, with brands such as Aston Martin, Bentley, Ferrari, Maserati and Porsche at dealerships from Yorkshire and the North East to Derbyshire, Lincolnshire and Nottinghamshire.
Responding to JCT600’s public disappointment, JLR UK managing director Patrick McGillycuddy said: “We are in the process of refining our UK retail operations as part of our Reimagine strategy. Under Reimagine, JLR will transition to a sustainable, modern luxury business for the most discerning clients.
“As such, our UK retail network will be rationalised to ensure we have the right partners in the right locations and in the case of JCT600, we have elected not to renew our contract beyond November 2024.
“JCT600 has requested to leave the brand ahead of its contracted term and JLR has agreed to support this request. We are committed to supporting our clients in Doncaster with alternative local services to ensure their service and maintenance needs are met without disruption.”
JLR is directing customers from the Doncaster area who need sales and service support to a number of other sites in the region, including Hatfields Land Rover Hull, Sytner Land Rover Sheffield, Sytner Land Rover Wakefield and Duckworth Land Rover Market Rasen.
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- Source: https://www.am-online.com/news/dealer-news/2024/02/22/jct600-disappointed-with-jlr-s-move-to-close-doncaster-jaguar-land-rover-dealership
