Friday, July 11, 2008
500 job cuts were ‘to fit the current market’
Pendragon’s 500 redundancies were essential because of falling sales of new cars to retail buyers and small businesses, said chief executive Trevor Finn.
He could not say whether more redundancies would be necessary. “We are the right size for the market now,” said Finn. “The action was highly significant for those affected, and the total looks a lot, but it must be put into perspective.”
Pendragon still employs more than 14,000 people and redundancies averaged about 1.5 jobs for each of its 333 dealerships.
A Pendragon trading statement at the end of June announced the job cuts and referred to May’s 9.5% fall in new retail and 15.4% for small-business registrations. It expects new car registrations to decline for the rest of the year.
The statement added that the group’s profit for the year was difficult to forecast in such volatile trading conditions, but said sales volumes were “robust relative to the market”.
There was an element of empathy across the motor retail sector because everyone faced the same difficulties, said Finn, and he expected car manufacturers to give support where they could, in ways such as reducing sales targets.
“A lot of dealers are losing money because a range of factors, including higher interest rates and council tax bills, are making many people reluctant to buy a new car,” he said.
DATED: 11.07.08
FEED: AM
He could not say whether more redundancies would be necessary. “We are the right size for the market now,” said Finn. “The action was highly significant for those affected, and the total looks a lot, but it must be put into perspective.”
Pendragon still employs more than 14,000 people and redundancies averaged about 1.5 jobs for each of its 333 dealerships.
A Pendragon trading statement at the end of June announced the job cuts and referred to May’s 9.5% fall in new retail and 15.4% for small-business registrations. It expects new car registrations to decline for the rest of the year.
The statement added that the group’s profit for the year was difficult to forecast in such volatile trading conditions, but said sales volumes were “robust relative to the market”.
There was an element of empathy across the motor retail sector because everyone faced the same difficulties, said Finn, and he expected car manufacturers to give support where they could, in ways such as reducing sales targets.
“A lot of dealers are losing money because a range of factors, including higher interest rates and council tax bills, are making many people reluctant to buy a new car,” he said.
DATED: 11.07.08
FEED: AM
