Fleet News

Reduced profit for motor group

EUROPEAN Motor Holdings, the London-based motor retail chain, has reported falling profits despite increased turnover. Profit before tax was £6.7 million and turnover totalled £345 million. In the previous 12 months profit was £7.9 million and turnover was £284 million.

The company's chief executive, Richard Palmer said the results were disappointing but predicted an up-turn in the market. In his report Palmer hit out at the continued situation with nearly new cars sold at dramatic discounts on the new price to the detriment of residual values.

He said the group now had plenty to look forward to having opened new operations for Fiat and Alfa Romeo in Sunderland, a new dealership in Gateshead with Renault and Rover franchises and new dealerships for Nissan and Jaguar in York. Citroen has been added to the Warminster operation.

Major successes in the portfolio included sales of Volkswagen, BMW, Mercedes-Benz and Jaguar but during the year the group had terminated franchises with Hyundai in Chester and Warminster and with Suzuki in London and Tetbury as well as with Volkswagen in Driffield. The group sold 10,251 new cars compared to 9,221 in the previous year.

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