Warning: Use of undefined constant ’WP_MEMORY_LIMIT’ - assumed '’WP_MEMORY_LIMIT’' (this will throw an Error in a future version of PHP) in /home/ronayne8/public_html/motor-trade-insider.com/wp-config.php on line 17

Warning: Use of undefined constant ’128M’ - assumed '’128M’' (this will throw an Error in a future version of PHP) in /home/ronayne8/public_html/motor-trade-insider.com/wp-config.php on line 17
Inchcape looks to cut jobs after issuing profit warning - Motor Trade Insider
Warning: count(): Parameter must be an array or an object that implements Countable in /home/ronayne8/public_html/motor-trade-insider.com/wp-content/plugins/page-and-post-lister/cg_pages_core.php on line 390

Inchcape looks to cut jobs after issuing profit warning


Warning: preg_match(): Compilation failed: invalid range in character class at offset 4 in /home/ronayne8/public_html/motor-trade-insider.com/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 1384

Warning: preg_match_all(): Compilation failed: invalid range in character class at offset 4 in /home/ronayne8/public_html/motor-trade-insider.com/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 700

Warning: Invalid argument supplied for foreach() in /home/ronayne8/public_html/motor-trade-insider.com/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 707

Warning: preg_match_all(): Compilation failed: invalid range in character class at offset 4 in /home/ronayne8/public_html/motor-trade-insider.com/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 700

Warning: Invalid argument supplied for foreach() in /home/ronayne8/public_html/motor-trade-insider.com/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 707

Inchcape, the UK’s second largest car dealer, has issued a profits warning and is now expected to make job cuts.

The group, which employs 6,000 people in Britain, is seeking to make cost reductions of £50m but it said it was unable to say how many jobs would go as part of that initiative.

It has been forced to issue a profits warning as year-on-year sales in the three months to 30 September fell by 10.8 per cent.

In a statement to the stock exchange the company warned that trading in Europe was becoming “more difficult” but it is the decline in the UK that has had the biggest impact.

It said that despite outperforming the market it had “clearly been affected” by the downturn in the UK, which accounts for 40 per cent of its total turnover, and warned it did not expect conditions to improve for the foreseeable future.

“We expect current trading conditions to remain difficult for the rest of 2008 and throughout 2009,” Inchcape said.

“As a consequence we expect our underlying results for 2008 to be below consensus and for 2009 to be significantly below our previous expectations.

“We are undertaking a substantial overhead reduction programme to right-size the business in the light of current market conditions.”

Inchcape’s share price plunged 38 per cent in this morning’s trading to 78.5p following the announcement.

TalkingMotors

In51der
  • Dealer group Inchcape to axe 500 jobs and 10 dealerships worldwide
  • Inchcape upbeat despite ‘challenging’ market
  • Inchcape results ‘solid’ in a ‘challenging’ market
  • Pendragon and Inchcape make triple-digit share price gains
  • Inchcape seeks to reduce debt
  • Inchcape reports sales rise despite UK slowdown
    • Huge interest in Log Book LoansInside the car auction - dealer part-exchanges
    You Might Also Like
     
     
    Comments: 1
    1. admin
      11 years ago

      As we have been saying, and sadly it looks like it is coming true, even well positioned well funded companies are not immune to the current market slowdown. There will be some more pain before it gets better as is the same for many areas of business. For the franchised main dealer however, when the dust settles there will be fewer dealer groups and much less outlets on the high street where you can buy a car. So the bigger more customer cantered organisations will be left to pick up the pieces and ultimately as hard as it seems now the consumer will be the winner, as the dealer group backed by the manufacturer will need to provide first class customer service in order to survive and prosper or they will simply die!

    In51der

    Motor Trade Insider - Bridging the gap between the customer and the Motor Trade

    11 years ago News, , , , 43