Vauxhall said to plan to reduce showrooms by a third

LONDON -- PSA Group's Vauxhall business in the UK plans to cut its dealership network by a third to about 200 outlets, a dealership group boss said.

PSA bought Opel and its British sister brand Vauxhall last year when it acquired General Motors’ money-losing European arm. PSA has been pursuing a restructuring plan to return it to profitability.

Vauxhall's new boss, Stephen Norman, is tasked with turning around sliding sales in what has traditionally been Opel-Vauxhall's biggest market, where demand fell 22 percent in 2017, compared with an overall market decline of 5.7 percent.

The head of a car dealership chain told Reuters, on condition of anonymity, that the network would be cut. "The whole UK Vauxhall network is around 300 dealerships and that will be reduced to around 200," he said.

"They have told us it's a plan. They are driving it. It's a good thing to do as it keeps the sales per outlet in a good place and maintains the viability of their network."

The move will lead to job losses, the boss said.

A Vauxhall spokesman said: "No decisions have yet been made."

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