Peter Vardy has confirmed its CARZ dealership in Dundee is to close, putting dozens of jobs at risk.
The business said it is planning to close its used car supermarkets in Dundee and Glasgow due to “challenges” in the market including a lack of vehicle supply.
It said Covid restrictions, which limited the number of new cars being produced in 2020, means there is now a lack of used cars under three years old.
The company said the closure means there will be “regrettable redundancies”. A consultation process has started with staff.
Peter Vardy on Dundee closure decision
Chief executive Peter Vardy issued a message to the Dundee workforce.
He said: “Proposing the closure of any business, when the primary focus is on colleague engagement, welfare and career development is of course a disappointment.
“I am sorry to and for our affected colleagues but we will do everything in our power to support them in this period.
“The lack of a used car supply for car supermarkets has driven this decision.
“It hasn’t been performance or skill or the quality of our teams, it’s a change in the market conditions.
“While the decision to close our used car supermarkets is tough for us all, we firmly believe that reallocating resources, funds, and talent to the growing divisions within the group will bolster long-term prospects for the business and its colleagues.”
Sad end to £7m ‘destination dealership’
The number of jobs at risk from the Dundee closure has not been confirmed by Peter Vardy.
The motor group also operates from Perth and Kirkcaldy. It said it hopes to redeploy workers into jobs in other sites.
The purpose-built dealership on Dundee’s Broomhill Road opened six years ago at a cost of £7 million.
At the time of opening, the firm said around 100 workers would be employed in sales, vehicle repair, maintenance and support services. Peter Vardy said the 70,000 sq ft facility would be a “destination dealership”.
Sitting on a 8.5 acre site at Dunsinane Industrial Estate it has around 500 car spaces.
The switch to the Dundee site becoming CARZ, specialising in used vehicles, came in 2020, after new car supply dried up due to Covid.
Last September Peter Vardy highlighted strong used car sales as a major contribution to profits.
In June disgruntled drivers held a protest claiming the dealership sold them vehicles with underlying issues.
The Peter Vardy site was once home to another major employer – Dundee’s famous Valentines card factory.
Peter Vardy statement
Peter Vardy also operates six Vauxhall dealerships in Aberdeen, Perth, Kirkcaldy, Edinburgh, Motherwell and Dalgety Bay.
It has also been appointed as a new franchise partner for MG, with new sites planned for Kirkcaldy and Edinburgh.
It said: “The company is dedicated to offering a significant number of vacancies and hope to offer as many to our affected colleagues alternative roles in other growing areas within the wider group, ensuring their professional development and future prospects.
“At Peter Vardy, colleague welfare is and always will be the primary objective.
“The company has meticulously planned and executed measures to ensure the well-being of all impacted colleagues during this period.
“New roles have been created to accommodate affected employees. The government agency PACE (Partnership Action for Continuing Employment) has been appointed to provide additional support.”
