Vertu Motors blames Reeves' Budget for job cuts and Sunday showroom closures Car dealership Vertu Motors has blamed job cuts and the closure of showrooms on Sundays to Budget cost increases, anticipating a hit of around £10m.
Vertu Motors has issued a profit warning, stating that earnings will be "significantly" below expectations for the year ending February 28, due to lacklustre consumer demand and major disruptions in the new car market caused by the Government's ambitious zero emissions vehicle (ZEV) sales targets.
The company has been vocal in recent months about market volatility linked to the UK’s environmental goals, noting last year that car manufacturers are being compelled to ramp up the supply of battery electric vehicles (BEVs) due to the Government’s mandate, yet have had to cut prices amid waning demand.
The company warned that it expects an additional £10m in wage costs in its next financial year ending February 2026 due to the Budget measures, and anticipates wage inflation in other areas such as car valeting and cleaning costs.
With a natural staff turnover rate of 15% to 20% among its 7,500 employees each year, Vertu, which operates 198 sites across the UK, will also close most of its showrooms on Sundays for the first time to mitigate the cost impact.
