Multi-national multi-franchise car dealer group Inchcape have outlined plans to cut 500 jobs in a sign that at least some in the private sector are in no mood to hire axed public sector workers.
The car dealership, which sells new and used cars in 26 countries and employs 14,300 staff, is still in cost-cutting mode despite a rebound in business.
It plans to save £25million by disposing of 10 sites and cutting jobs in the UK, Belgium, Singapore and Greece which are the 4 markets it operates in that are not expected to grow next year.
“As expected, we saw a slowdown in new car registrations in the UK following expiration of the scrappage incentive and demand for new cars fell in Greece,” said André Lacroix, Inchcape CEO.
By contrast, Hong Kong (up52% so far in 2010), Australia and South America have seen a strong recovery in the automotive sector and conditions are also improving in Russia.
“The group has performed better than expected in the third quarter and Inchcape will deliver a robust earning s recovery in 2010, slightly ahead of expectations,” said Lacroix.
In the UK Inchcape said the division performed ‘slightly better than expected’ thanks to increased demand for luxury vehicles
Inchcape posted an 8.6% rise in sales in the first nine months of 2010 and said that full-year profits will be better than expected.