A POPULAR car dealership is set to close, with 60 jobs at risk if a new site is not found for the business.
The Kia dealership in Cambridge is “subject to closure in September 2025”, as part of the North-East Cambridge Area Action Plan, which will create a major new district in the city.
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The owners of the dealership have proposed moving it to a site on Ely road that they say is a “highly suitable location” for “retaining employment”.
However, the plans have so far seen nine objections from concerned locals.
One local said the potential traffic caused by the dealership would be “completely incompatible” with the village.
Another resident said: “An increase of traffic would likely further exacerbate the North Lodge Park estate parking.
“The new use would also lead to car transporters using this junction, which would likely also lead to additional disruption for residents and estate users.”
The building which the dealership plans to take over is currently unoccupied.
Plans include making “modest aesthetic” changes to one side of the building and entrance, to match the branding of the dealership.
This comes after another car dealership, TC Harrison Ford in St Neots, Cambridgeshire, closed its doors for the last time on Friday.
The closure was confirmed after planners granted permission for a new retirement village to be built on the dealership’s site last year.
TC Harrison confirmed last month that the dealership would close on May 16, 2025.
Happily, there will be no job losses following the closure, with all business activities and staff to relocate to the the firm’s Huntingdon branch, just 11 miles away.
And a huge car dealership with over 91,000 vehicles currently on sale will close within weeks putting over 100 jobs at risk.
The German online used car marketplace has made heavy losses since opening in the UK in 2019 when it looked to rival Auto Trader and Motors.
Heycar’s majority shareholder, Volkswagen Financial Services (VWFS), have pulled the plug leaving more than 126 employees across the UK, Germany, and France at risk of losing their jobs.
A large proportion of Heycar’s employees are based in the UK.
Why are so many car dealerships closing down?
By Summer Raemason
According to Business Rescue Expert there are multiple reasons why car dealerships are folding across the UK.
The first major factor is rising online car sales which are beating in-person sales at dealerships.
With an extensive range of comparison and second-hand sites to chose from, may car buyers don’t even step foot into a dealership anymore.
Secondly, the actual cost to physically run the sites has soared.
Rent, wages and energy bills have all been increasing for roughly the past five years, putting many out of pocket.
Car manufacturing across the globe was also hit by a semiconductor chip shortage in 2022 which made it difficult to produce new motors.
The high demand with limited supply created a backlog, which although has eased, is still having an impact on the industry.
A third reason for recent closures is the shift to electric cars.
They are becoming more popular, given the Government initiative to be Net Zero in 2050.
The industry is also affected when companies merge or are bought by rivals.
This may lead to some independent names falling victim to the ongoing spate of closures.
They are expected to close in the UK shortly after their closure in Germany, expected to be in mid-May.
And a Volkswagen dealership in Wirral has also recently closed, after it’s owner US-based Group 1 decided it was restructuring, as part of a £346 million deal.
A Volkswagen spokesperson told the Globe: “We can confirm that Group 1 Volkswagen Wirral ceased trading at the end of March and is now closed.
“Our focus when any network changes take place remains on convenience and the highest levels of service.
“Customers have been contacted to advise them of alternative sales, service and parts facilities.”
Hundreds of jobs are at risk due to the restructuring.
