AM100 dealership group Group 1 Automotive has announced plans to divest its Jaguar Land Rover (JLR) franchise operations within the UK as a part of a broad portfolio optimisation strategy revealed in its third-quarter results.
The US-based retail group said persistent economic headwinds within the UK – including stubborn inflation, high rates of interest, rising energy costs and weakening consumer demand – have squeezed margins and driven up operating expenses across the retail sector.
“As a part of our ongoing portfolio optimization, we informed our OEM partner, JLR, of our intention to sell or relinquish our UK JLR franchise operations,” the corporate said in an announcement.
AM100 dealership group Group 1 Automotive has announced plans to divest its Jaguar Land Rover (JLR) franchise operations within the UK as a part of a broad portfolio optimisation strategy revealed in its third-quarter results.
The US-based retail group said persistent economic headwinds within the UK – including stubborn inflation, high rates of interest, rising energy costs and weakening consumer demand – have squeezed margins and driven up operating expenses across the retail sector.
“As a part of our ongoing portfolio optimization, we informed our OEM partner, JLR, of our intention to sell or relinquish our UK JLR franchise operations,” the corporate said in an announcement.
Currently, in response to our AM100 research, Group 1 Automotive UK has 10 Jaguar and Land Rover dealerships.
“We proceed to work with other OEM partners to judge our portfolio, which we expect will lead to the sale or closure of additional points.”
Group 1 Automotive last 12 months accomplished its £346 million takeover of Inchcape Retail, adding 54 automobile and van dealerships in a “monumental transaction” that put it into the highest five of the AM100 rankings of UK’s largest motor retailers.
Doing so expanded Group 1 Automotive UK’s trading area into the Midlands and the North West of England, and into Wales, plus adds more sites in its existing geographic footprint within the East and South East of England.
It also broadened its brand portfolio with Audi, BMW, Jaguar Land Rover, Lexus, Mercedes-Benz, Mini, Porsche, Smart, Toyota, Volkswagen and Volkswagen Industrial Vehicles.
The choice to ditch its JLR franchises comes alongside a serious financial hit for the group’s UK operations. Following a quantitative assessment of its UK reporting unit, Group 1 recorded $123.9 million in goodwill, franchise rights, and glued asset impairment charges as of August 31, 2025.
As well as, the corporate booked $1.6 million in restructuring costs through the quarter, tied to workforce realignments and the strategic closure of certain facilities. Yr up to now, UK restructuring expenses have totalled $20.3m, and further cost-cutting measures are expected.
“The UK market stays difficult, with softer industry volumes and continued BEV-related margin pressure. We’re taking steps to strengthen our UK portfolio, and we proceed restructuring efforts to make the business more efficient,” said the business.
“With our portfolio optimisation efforts, including leveraging aftersales and F&I as growth levers, we will likely be positioned to emerge stronger because the market stabilises.”
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