Arnold Clark To Lose Toyota Franchises
Toyota has issued termination notices for its six franchises held by Arnold Clark. It’s expected that Vertu’s Macklin Motors will pick up the manufacturer in Scotland.
The franchised dealerships concerned 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%. However 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.
A spokesman for Arnold Clark 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.”