John Grose Group cuts parts sales
17 April 2019
East Anglian retailer John Grose Group is pulling back from selling parts for older used cars, saying manufacturer changes make it a less attractive business for franchised retailers.
Publishing its accounts for the year ended 31 December, 2018, which showed lower pre-tax profits of £1.6 million on group turnover of £166m, the strategic report noted: “Competition in the aftersales side of the business between franchised and non-franchised service outlets continues to be fuelled by aggressive pricing in the wholesale parts distribution by manufacturers and non-OEM suppliers competing for the older vehicle parc.
“Both Ford and PSA continue to restructure their parts distribution models which make it less attractive for the franchised dealer and therefore a sector what we will reduce our activity.”
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