Arnold Clark to lose Toyota franchises
14 February 2022
Toyota has issued termination notices for its six franchises held by Arnold Clark with Vertu’s Macklin Motors expected to pick up the manufacturer in Scotland, according to Auto Retail Agenda sources.
The Arnold Clark physical sites in Aberdeen, Ayr, Paisley, Stirling and two in Glasgow have not been sold to another group. It is understood staff at the dealerships have been told about the loss of the franchise.
Privately owned Arnold Clark is often held up as one of the most successful retail groups in the UK. In its most recent annual results covering 2020, Arnold Clark saw profit before tax grow 33.7% from £117 million to £156.5m, despite revenue falling 15% to £3.8 billion. Used car sales fell 20.2% and new car sales declined 26.5% but the business ended the year with significantly more cash resources, boosting net funds available to £524m.
Toyota is also one of the most sought-after franchises and has consistently featured in the top five highest rated brands by retailers in the NFDA Dealer Attitude Survey over the past five years.
When quizzed about the terminations and the appointment of Macklin Motors, a spokesman for Toyota declined to comment. Vertu also declined to comment.
Asked about the changes, an Arnold Clark spokesman said: “We are in conversation with lots of new and existing manufacturers at the minute, but at this moment we are not in a position to comment further.”
UPDATE: Since this story was first published on 13 February, Vertu and Toyota have confirmed they will be working together in Scotland.
A spokesman for the retailer said: “Vertu Motors is pleased to announce that Macklin Motors, the trading name for Vertu in Scotland, has been awarded the Toyota franchise in the West of Scotland from 1 April 2022. The group intends to develop four dealerships in the coming periods to cover this extensive territory with the first dealership at Darnley, South Glasgow opening on 1 April.
“This will be the Macklin Motors brand’s first representation of the manufacturer, which is the world’s best-selling car maker and is at the forefront of the electrification of the global automotive sector and the development of new mobility solutions through the Kinto brand. Vertu Motors already operates three Toyota outlets in the East Midlands.
“Recruitment has now commenced for the new operations.”
Vertu CEO Robert Forrester added: “Toyota is a world-renowned manufacturer that we’re delighted to represent. We have confidence that its investment and wider strategy will make it one of the most successful automotive manufacturers in the UK in the coming decade.
“The addition of these dealerships augments the Group’s representation in Scotland under the Macklin Motors brand and expands our operational footprint there. It also demonstrates our confidence in both the future of the automotive retail sector and in Scotland’s economy.”
Paul Marshall, general manager of network development for Toyota GB, said: “We are delighted to be expanding our operations with Vertu Motors plc through their Macklin Motors operation in this key geographic region, and are looking forward to developing several new exciting facilities for our customers.”
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