Inchape closes car dealers and 500 staff

Slowing sales have forced car dealer Inchcape will sell 10 dealerships in a cost-cutting move that will reduce its staff by 500. Inchcape has decided to sell dealerships in the UK, Singapore, Greece and Belgium – four markets it operates in that are not expected to grow next year. It employs 14,141 people worldwide but it was unclear today which dealerships would be affected. "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, the chief executive. By contrast, Hong Kong, Australia and South America have seen a strong industry recovery and conditions are also improving in Russia. The Hong Kong market is up 52% so far this year. "The group has performed better than expected in the third quarter and Inchcape will deliver a robust earnings recovery in 2010, slightly ahead of expectations," said Lacroix.