Inchcape has disclosed of Volkswagen car and van franchises in Essex to US giant Group 1 for an undisclosed sum.
The acquired dealerships are located in Chelmsford, Colchester, Romford and Southend. This acquisition is expected to generate approximately $115m (£93m) in revenues for Group1.
The addition of these stores increases Group1’s UK operations to 49 dealerships, which includes Audi, BMW, Ford, Jaguar, Kia, Land Rover, Mini, SEAT, Skoda, Toyota, and Volkswagen Commercial Vehicles.
“We are pleased to further expand our global relationship with Volkswagen through the addition of these five franchises to our growing UK platform,” said Earl J Hesterberg, Group 1’s president and chief executive officer.
During June, Group1 sold three UK franchises, which included BMW and MINI franchises in Watford and a Volkswagen commercial vehicle franchise in Hatfield.
These franchises generated approximately $70 million in trailing-twelve-month revenues.
The disposal of the dealerships comes as little surprise as Inchcape has repeatedly flagged up the scale and performance of the distribution side of its business over retail.