Group 1 Automotive, the Texas-based car dealership giant, has confirmed it will proceed with a new wave of UK showroom closures in 2026. The decision comes in the wake of its £346 million acquisition of Inchcape’s UK sites last year, which elevated it to one of the top five largest retailers in the British market.
Although the company reported its highest-ever global revenue of $22.6 billion for 2025, the UK business has faced mounting pressure. Lower volumes, electric vehicle-related margin issues, and restructuring charges have all contributed to what the firm described as a “challenging” market.
Site Closures and Job Cuts to Continue across the UK
Group 1 Automotive currently operates 254 dealerships across the US and UK. The firm has announced it will continue shutting branches throughout Britain as part of a strategy to cut costs and streamline operations. According to Car Dealer Magazine, the company has already closed a number of key locations, including BMW and Mini showrooms in Stansted and Hindhead, along with a Toyota site in Burton and a Volkswagen service centre.
In a statement, the company confirmed that 2026 will bring “additional actions” in its effort to “further optimise our operations and reduce costs”. This includes “workforce realignment and strategic closings of certain facilities”.
Group 1 has also confirmed it will completely exit its Jaguar Land Rover (JLR) operations over the next two years, shutting down all ten of its JLR dealerships in the UK. Although there may be opportunities for other brand partners to replace these sites, the closures will have a direct impact on staff.
Restructuring efforts began formally in October 2025, incurring a total of $28.4 million in UK restructuring charges that year. The fourth quarter alone accounted for $8.1 million of those costs, according to The Sun. Despite the financial weight of these measures, Group 1 maintains that these decisions are necessary to stabilise and future-proof its UK footprint.
Global Profits Soar, but UK Performance Lags
While the UK division undergoes contraction, the wider Group 1 Automotive business experienced a strong 2025. Revenues climbed by 13.2 percent year-on-year, reaching $22.6 billion. Gross profits also set a new record at $3.6 billion, supported by an almost 16 percent rise in parts and service revenue.
CEO Daryl Kenningham noted that “record revenues across all of our major business lines” and the strength of finance and insurance (F&I) operations were clear indicators of the group’s “relentless focus on operational excellence”.
However, this success did not fully extend to the UK segment. Net income from continuing operations dropped from $497 million in 2024 to $323.7 million in 2025. The fall was partly attributed to $192.8 million in non-cash asset impairment charges, according to The Sun.
Kenningham acknowledged that the UK market remains “challenging” and highlighted the “continued BEV-related margin pressure” as a significant factor. The company said it would focus on leveraging aftersales and F&I to drive future growth, alongside streamlining operations.
Group 1 continues to invest selectively elsewhere, including recent acquisitions in Fort Myers, South Austin and Buckhead in the US, as it rebalances its global dealership portfolio. Despite UK setbacks, the company insists its long-term position remains strong as markets stabilise.
